Apple Inc. (AAPL)’s Short vs Long Term Performance

Apple Inc. (NASDAQ:AAPL) has been a leading company in terms of both innovation and profits, but the company has a challenge ahead. Sarat Sethi, managing director at Douglas C. Lane & Associates, said in an interview on CNBC that Apple Inc. (NASDAQ:AAPL) will have to struggle to realize its long-term perspectives, which are the ground foundation for its revenues and competitive advantage.

AAPL Apple Store

“[...] Shorter term, the stock’s had a great run. It’s inevitable that people take money off the table ,especially with the market being at all-time highs, so that doesn’t really worry me as much. It’s really coming forward how well these products are received, and really what the take it is. That’s going to be really important [...],” said Mr. Sarat Sethi.

Since, Apple Inc. (NASDAQ:AAPL)’s price declined yesterday, it might be a good idea to start buying its shares, in the event that the price will explode soon. Confidence over the fact cannot be attained at the moment, but the company’s performance shows a promising trend. The problems that might arise are at the competition level, where companies like Samsung, directly compete with Apple Inc. (NASDAQ:AAPL).

Consequently, there are predictions related to diminishing margins compared to the market for the Cupertino, California-based company. This threat can prove futile in case people expect the whole range of their devices to be connected together, that is, they want to enter a whole new ecosystem through the purchase of one device. Moreover, margins will be at a lower value since the company’s currently focused on production and capacity, but they might rebound soon.

The report further dismissed the possibility of Telecoms to gain bargaining power with respect to hardware manufacturers in order to cut into their margins, on the grounds that the services provided by these companies are currently perceived as commodities.

Apple Inc. (NASDAQ:AAPL) is currently selling at about $99 per share, and might decline further as uncertainty about their release exists and people expect fewer profits in the short period around the launch. However, assuming that iPhone 6 will be a success, the stocks might jump to a new all-time high.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 14 Most Watched TV Finales Ever

The 10 Best Selling Role Playing Games of All Time for PC

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!