Apple Inc. (AAPL) in the (i)Cloud, but Can It Face Reality?

Brian Blair, analyst at Wedge Partners, wrote in a research note, “[I]t’s evident that Apple is now being forced to sell lower cost products at lower prices to address the low cost trend in smartphones and tablets. We believe this is best evidenced in the strong demand for the iPad Mini ($329 vs. $499 for the standard iPad) and in the continued strength of iPhone 4S/4 sales since the 5 launched last fall. As Apple continues to address its global audience price is paramount, and with so many low cost Apple alternatives on the market, Apple is being forced to offer competing products with lower margins.”

This would be consistent with Tim Cook’s continued determination that Apple Inc. (NASDAQ:AAPL) is focused on getting a foothold in China, an emerging market where Apple products are currently out of reach for a large percentage of the consumers. While Apple introduced a financing plan in China for its current stable to devices, there are rumors that the company may eventually  relent and put out a cheaper smartphone sometime this year in order to accommodate markets like China, India and Brazil. It’s either that, or the upgraded current devices will have to come up with premium-priced innovations to corral the bears that are on the loose.

What do you think? We’d love your comments about Apple Inc. (NASDAQ:AAPL) and your thoughts about the stock and the running of the bears right now. Is there hope for investors moving forward?

DISCLOSURE: I own no positions in any stock mentioned.

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