Shares down 3% today.
I think we're due a world recession by the end of 2016. I wonder if Apple's weakness is a harbinger of things to come. I've been long Apple since 2010, so want the price to go up. Is it all over, or should I be patient? And who else thinks we're due a big dip?
Thoughts are welcome.
No. What you have termed as Apple's 'weakness' is not necessarily a harbinger of 'things to come' for any company except Apple.
This has little to do with world patterns and cycles of 'boom & bust' and a lot to do with the fact that Apple, like any company specialising in innovation, is no longer defining the what might be termed the desirable future of technology.
For now, much like Nokia a mere 15 years ago, it still commands its own universe. Long term, without innovation, while the company will doubtless survive, (and survive quite well), I doubt that it will command the sector it has done so much to define for so long.
Apple almost died, now they rule the world. Neither state is permanent. Economies grow, and economies fail - neither state is permanent.
I do think Apple's dominance will come to an end but they should be able to ride the momentum they have generated for a while longer.
Very good and thoughtful post, and one with which I agree.
But that's the thing. They aren't just a one trick pony. Their profits in other areas are enough to make most other companies years, it's just iPhone profits are so large. But even taking away the iPhone profits, there is still a very large and profitable company there.
I don't doubt that they are a large and profitable company, and indeed, that they will remain one for quite some time.
However, I don't see them remaining in the sort of technological and innovatory position where they defined what the market should aspire to and were the benchmark against which everyone other company in the field measured themselves. That is what has changed.
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