3 Ways Apple Inc. (AAPL) Can Create Value for Investors

However, iPhone growth may have to come from a lower-cost phone, violating Damodaran’s value creation rule of increasing cash flow from an existing asset. Technically, a new iPhone shouldn’t be considered as an existing asset, but neither was the iPad Mini, which helped fuel a 48% year-over-year increase in unit growth last quarter. I’ll let this slide as long as it allows Apple to deliver strong enough unit growth to maintain its iPhone market share and it’s seen increasing cash flow.

Patience is key
Value isn’t something that’s typically created overnight. It’s going to take time for the market to acknowledge that Apple probably isn’t that high-flying growth investment investors expect it to be. In terms of creating value, Apple doesn’t have to reinvent the wheel in order to be successful over the long term. With the right focus and creativity, Apple can seemingly create new growth opportunities out of its existing product lines. As an investor, would you be pleased with this value-creating approach?

The article 3 Ways Apple Can Create Value for Investors originally appeared on Fool.com and is written by Steve Heller.

Fool contributor Steve Heller owns shares of Apple. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.

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