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Apple Inc. (AAPL) Is No Rolling Stone: It’s Just A Misconception

Whether or not, there is any rival capable of changing the status quo remains to be seen. The iPhone maker could be soon looking at market potential in extent of one billion customers for its iPhones, as China Mobile, China Telecom and China Unicom, the country’s leading carriers combined, surpassed the one billion mark for the total number of customers. While this number includes the 2G customers, and of course still remains up for grabs for competing companies, including Nokia and Samsung, upgrading is on course as more customers switch to a 3G network.

Additionally, Apple Inc. (NASDAQ:AAPL) is believed to be pondering the launch of an iTV sometime this year. This will open the doors for the company in widening its entertainment business unit, which features the iTunes App store. Apple’s App store still commands a lot of loyalty from customers, and widening its potential can only result to an upside in revenues and gross margins.

Another area that Apple should be looking to work on is its next generation of iOS. Reports indicate that Apple has a huge potential in Mobile Cloud computing, but only if the company iOS 7 includes enhanced features. For instance, reports indicate that better Siri integration and multitasking as well as toggles in the notification center would be key. Other features suggested by the media include improved native app flexibility and app reviews to allow users to assess apps before purchasing.

Bottom line

Apple’s latest performance at NASDAQ stock exchange is depicting a picture, which many investors are probably posing the question, “Is this really Apple?” To be honest, very few analysts would have predicted Apple to trade below $500 in 2013. Indeed, according to recent statistics published by CNN’s Fortune magazine, the average target price for the company was estimated at $740, with some firms putting it at $900. But alas! Apple seems to be rolling down the cliff.

However, the company’s fundamentals and strategy remain outstanding. The company’s cash account reads figures in excess of $50 billion. Some of its rivals would need two years to generate revenue equivalent to that, leave alone cash reserves. Apple Inc. (NASDAQ:AAPL) needs to change the mindset of investors to send shares on a rally, and it has the right tools in place. Selling now would be a terrible mistake.

The article Apple Is No Rolling Stone: It’s Just A Misconception originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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