The entry of newer-age gadgets poses additional pressure for Apple Inc. (NASDAQ:AAPL), as the company has to play defense at least for Smartphones until it launches newer product lines later this year. Also, the incremental competition might force Apple to slash prices even more in the near-term to incentivize customers to buy Apple products instead of going to rival firms.
However, Apple still holds an enviable lead in the market for tablets with an estimated market share of close to 40% and the company sold iPad units almost double the amount sold by the next biggest player, Samsung. However, up and coming players like ASUS and Windows might pose more pressure on Apple Inc. (NASDAQ:AAPL) to cut down prices for its tablet product line.
The Bottom Line
The company’s heavy investments in R&D and long-term experience of building innovative products should hold up well. And the company should try to roll-out newer products to the market as soon as possible and play offense against the competition.
Ishfaque Faruk has no position in any stocks mentioned. The Motley Fool recommends Apple. The Motley Fool owns shares of Apple.
The article The Bear Thesis for Apple originally appeared on Fool.com.
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