A Cautionary Tale for Apple Inc. (AAPL) Investors

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Considering its 12-digit cash pile on its balance sheet, an acquisition or two is easily foreseeable. Apple could branch out into an up-and-coming new technology such as 3-D printing, snatching up a company such as industry leader 3D Systems Corporation (NYSE:DDD) , worth $3.3 billion. It would barely know the money was gone. With Apple’s marketing muscle and brand awareness, it could surely hasten the day when 3-D printers become a household item. Perhaps it’s fitting that one of the most popular 3-D-printed items is iPhone cases.

Foolish bottom line
Plenty of ink has been spilled on the genius of Steve Jobs and what his passing means to the company he created. That debate is sure to endure, but Sony’s example may offer the best cautionary tale for Apple and its investors. What was once a beacon of innovation has become a commoditized electronics producer and a bumbling media giant, largely because of the departure of its visionary leader.

Apple needs to learn from Sony’s mistakes. It must keep innovating or it will follow in the same path to mediocrity. As shareholders saw in the stock’s recent fall, the market seems to already have written the obituary on its halcyon years. With consumers quickly shifting their tastes, it’s up to Tim Cook and company to write a new chapter before the market closes the book on them for good.

The article A Cautionary Tale for Apple Investors originally appeared on Fool.com and is written by Jeremy Bowman.

Fool contributor Jeremy Bowman owns shares of Apple.The Motley Fool recommends and owns shares of 3D Systems and Apple and has options on 3D Systems.

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