Apple Inc. (AAPL): Can It Really Get Worse Before It Gets Better?

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Plus, Munster doesn’t expect Apple’s third-quarter report, which will come out in June, to be any better. This scenario certainly qualifies in one in which Apple is getting worse.

Where’s the “better” part?
Growth of 5% is not Apple-like, nor will the company be satisfied with it. But Apple Inc. (NASDAQ:AAPL) can reinvigorate growth by launching a cheaper iPhone, which is widely anticipated. The lower-end market is one the company can no longer ignore, especially if Apple is really committed to entering the Chinese market. But that’s going to come at a cost. Apple will have to sacrifice some margin to make this work.

The good news, though, is that Samsung’s new Galaxy S4 is not overwhelming, and neither is BlackBerry’s Z10. That should help preserve market share until Apple Inc. (NASDAQ:AAPL) is able to release new products later this summer. In the meantime, by reducing expectations for this coming quarter, Munster has done Apple a favor. Whether this move was deliberate depends on your point of view. But it’s nonetheless encouraging that the Street is (at least) willing to consider that Apple has been beaten enough and that the company, while still very valuable, may be readying for something bigger — or, in this case, better.

The article Can Apple Really Get Worse Before It Gets Better? originally appeared on Fool.com.

Fool contributor Richard Saintvilus owns shares of Apple. The Motley Fool recommends and owns shares of Amazon.com, Apple, and Google.

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