Apple Inc. (NASDAQ:AAPL) continues to be at the center of attention on posting record first-quarter earnings with investors and analyst entangled in a dilemma on what to do with the stock. Trading the Apple should be out of the picture according to CNBC’s, Jim Cramer, who maintains investments should be directed towards owning the stock as Apple Watch, and Apple Pay are expected to turn out big in 2015.
“For ages the critics who obviously don’t own the stock or sold the stock years ago or maybe they are shorted have been asking those kinds of questions about Apple Inc. (NASDAQ:AAPL), what have they accomplished? They doubted the iPod, they doubted the iPhone, they doubted the iPad; they doubted the iPhone 4, 5 and 6. They doubted the big iPhone they doubted China would love the new phones. Every one of these new initiatives panned out, and they panned out fabulously, “said Mr. Cramer.
Cramer refutes claims that Apple Inc. (NASDAQ:AAPL) is a one product company as people continue to raise concerns that its upward momentum would be severely affected by a decline in demand for iPhone 6. The analyst expects China to provide one of the biggest opportunities for growth going forward, having already vanquished Samsung’s dominance in terms of unit sales.
Skepticism about Apple Inc. (NASDAQ:AAPL)’s line of product especially Apple Watch and the upcoming iPad have made many investors make costly mistakes in relinquishing their positions in the company according to Cramer. Having confidence in the management on of new products remains key in owning the stock rather, than trading it on concerns according to Cramer.
“If Apple Inc. (NASDAQ:AAPL) has an innovation like the Watch like Apple Pay and this management team say people will love the product and will be a success. I’ve got an idea; maybe give them the benefit of the doubt. If this management says there is still tremendous demand for the new phone and that most people haven’t upgraded or don’t yet have an iPhone, believe them. If this management team says people will want the Apple Watch believe them […],” said Mr. Cramer.
Cramer expects Apple Watch to be a hit in the wearable despite recent concerns in the Street, reiterating that its sale could be impacted by the fact that most of the iPhone 6 users will want to own the gadget. Apple Pay is another frontier that the analyst expects Apple Inc. (NASDAQ:AAPL) to make substantial gains on as more retailers are expected to adopt it, out of fear of losing customers to competitors who might already have made the switch.
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