Apple Inc. (AAPL): The Agony and Ecstasy of a Bull

The smartphone market is currently flooded with many players. Even though Apple is the top smartphone manufacturer in the U.S., Google Inc (NASDAQ:GOOG)’s Android remains the top mobile platform. But, if we dig in, Google has licensed Android to a vast range of manufacturers, whereas Apple’s iOS comes only on one smartphone, making its share more impressive.

Despite this tough competition, I believe Apple will maintain around 40% of market share in the high-end smartphone market in 2013. The company’s pipeline looks strong for the third quarter of 2013. It includes a new iPhone and new iPads. These products, carrying the company’s flagship brand names, will help in accelerating the unit sales starting in the third quarter.

For investors

Even though the stock is going through a rough patch, the company’s product cycle is still strong. The lower-end smartphone market is a great opportunity for the company. I feel Apple Inc. (NASDAQ:AAPL)’s focus via this move should be to expand its user base and to challenge Android’s dominance.

As far as the stock is concerned, the near-term seems to a bit shaky and the downward rally may continue. However, over the long-term, the stock will try to gain some momentum after its scheduled launches. In the meantime, investors can enjoy returns in the form of dividend and share buybacks. I recommend a hold rating for this stock in the near-term.

Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Apple and Google Inc (NASDAQ:GOOG). The Motley Fool owns shares of Apple and Google.