Apple Inc. (AAPL): Can Emerging Markets Save This Sinking Ship?

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Put it on hold

With the maturing high-end smartphone market, Apple is focusing more on a cheaper version of its iPhone to increase its addressable market. It also poses a threat of cannibalization of its own high-end iPhones. It is currently not clear that a cheaper iPhone will actually be a low-range or mid-range product.

On a positive note, its announcement of returning $100 billion to shareholders in the form of buybacks and dividends by 2015 is on track. Apple Inc. (NASDAQ:AAPL) recently issued a $17 billion bond, which is its largest corporate bond issuance. Apple will utilize this fund for its share buyback and paying dividends.

Overall, I recommend holding this stock for now and waiting for more information about its upcoming products.

Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple and China Mobile Ltd. (NYSE:CHL).

The article Can Emerging Markets Save This Sinking Ship? originally appeared on Fool.com.

Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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