Hi all,
The new ipad (ipad 3 as we call it.. I still wonder whay they did'nt name it that) was launched this month. They managed to sell 3 million in under a week. I kind of felt very low that day. The price of my ipad (ipad 2) fell by some 15k and if I had waited longer I could have got the "Retina displa" to woo my eyes. Hard luck.
Much like Bill gates said a decade ago at a dinner party when some powerful guys were talking about the presidential campaign - "I am as powerful as the president". Now we might think that he was just being cocky owing to his dream of having a desktop (running windows) on every desk was about to come true. Today the situation is quiet similar - the small difference is that the guy who could have boasted this is not alive.
Apple has grown in the past few years to be the largest company in the world today. I heard somewhere that it has more money than the Fed. It is well on its way to becoming a trillion dollar company.. Damn! thats like 12 zeros :). The cool thing about all this that, reporting Apples profit can undermine the fact that the US economy is not doing so well after all. Apple is today larger than the complete retail sector of US put together. Many of the hedge funds own apple shares and they have booked huge profits due to this position. Apple's stock has shown a rally in the past few years, growing by more than 83 % this year...
So far so good. But the question that would really trouble us (at least a rational investor) is whether this is just an another bubble.
It might be a good idea to take lessons from the 2000 dot com bubble. The big problem with all this is that Apple relies on innovation for these super-profits. The technology sector is a "Innovate and stand out" thing. However, how long will this go on. With the magic-in-chief Steve Jobs resting in peace, can apple sustain this long enough. The whole market is bullish on the Apple share. A call option will cost you a fortune today.The bubble is definitely growing and its a good time to make a short investment in the shares probably half an year - before apple runs out of out of the box ideas. According to me, its never a good idea to hold a position in any tech share for a long time because of the technological cycle.
The only market that Apple has a real say in is the Tablet market. It is losing out in the smartphone and the laptop arena. I mean your chances of finding a mac with someone, atleast in the Indian or Chinese market are really low - the simple reason is that even today computer is a luxury in developing nations - and Apple is really pricy when it comes to anything.
Although I have high regards when it comes to Apple products but I would rather not stay invested in the company for a long time. It is evident that we might have an emotional attachment towards Apple. They do bank on the loyalty of their customers. I mean the Tech talk they hold every now and then - "I have something and You really needs to see this". Just those words coming out of Tim cook is so catchy.
Anyways its not a bad idea to own an Apple product. They really have a lot of difference when it comes to what they offer you. Although the compatibility can really be a headache at times.
Adios.
The new ipad (ipad 3 as we call it.. I still wonder whay they did'nt name it that) was launched this month. They managed to sell 3 million in under a week. I kind of felt very low that day. The price of my ipad (ipad 2) fell by some 15k and if I had waited longer I could have got the "Retina displa" to woo my eyes. Hard luck.
Much like Bill gates said a decade ago at a dinner party when some powerful guys were talking about the presidential campaign - "I am as powerful as the president". Now we might think that he was just being cocky owing to his dream of having a desktop (running windows) on every desk was about to come true. Today the situation is quiet similar - the small difference is that the guy who could have boasted this is not alive.
Apple has grown in the past few years to be the largest company in the world today. I heard somewhere that it has more money than the Fed. It is well on its way to becoming a trillion dollar company.. Damn! thats like 12 zeros :). The cool thing about all this that, reporting Apples profit can undermine the fact that the US economy is not doing so well after all. Apple is today larger than the complete retail sector of US put together. Many of the hedge funds own apple shares and they have booked huge profits due to this position. Apple's stock has shown a rally in the past few years, growing by more than 83 % this year...
So far so good. But the question that would really trouble us (at least a rational investor) is whether this is just an another bubble.
It might be a good idea to take lessons from the 2000 dot com bubble. The big problem with all this is that Apple relies on innovation for these super-profits. The technology sector is a "Innovate and stand out" thing. However, how long will this go on. With the magic-in-chief Steve Jobs resting in peace, can apple sustain this long enough. The whole market is bullish on the Apple share. A call option will cost you a fortune today.The bubble is definitely growing and its a good time to make a short investment in the shares probably half an year - before apple runs out of out of the box ideas. According to me, its never a good idea to hold a position in any tech share for a long time because of the technological cycle.
The only market that Apple has a real say in is the Tablet market. It is losing out in the smartphone and the laptop arena. I mean your chances of finding a mac with someone, atleast in the Indian or Chinese market are really low - the simple reason is that even today computer is a luxury in developing nations - and Apple is really pricy when it comes to anything.
Although I have high regards when it comes to Apple products but I would rather not stay invested in the company for a long time. It is evident that we might have an emotional attachment towards Apple. They do bank on the loyalty of their customers. I mean the Tech talk they hold every now and then - "I have something and You really needs to see this". Just those words coming out of Tim cook is so catchy.
Anyways its not a bad idea to own an Apple product. They really have a lot of difference when it comes to what they offer you. Although the compatibility can really be a headache at times.
Adios.
