Apple Inc. (AAPL)’s Outlook: Is It Time to Abandon Ship?

Google Inc (NASDAQ:GOOG)’s stock is very high as it is, but if more and more consumers switch away from Apple, we could see it drastically increase. In the case of Google, it’s time to buy.

Finally, watch out for Apple’s strategy when it comes to forestalling the advance of Samsung and other technological giants. The company recently resorted to patent law to stop Samsung from producing phones that threatened them, which is not a recipe for success. Rather, it’s an appeal for governmental protection. Much like American automakers in the 1970s, Apple has decided that with patent protection in place, its ability to make new products seem desirable will be increased, which could explain why the iPhone 5 bears so much similarity to its predecessors.

In the short-term, this strategy should slow down Samsung. Long-term, though, it won’t do anything about the fact that patent protection is no substitute for innovation and the “next big thing.” A company that is reliant upon government protection tends to decline, since they don’t have to actually be better than their competitors to succeed. In the long-term, that leads to disaster.

Conclusion

Apple Inc. (NASDAQ:AAPL) is by no means a crumbling stock. It might not regain its former strength, but it’s not going to collapse in the near-term. New product introductions should continually bolster its strength as well, but at the same time Apple is very vulnerable to the advance of the Android operating system and lower-cost phones.

How Apple expands into emerging markets will be integral to its success in the coming years. The risks for Apple are very high, but it also has good potential to meet them. If it can once again revolutionize technology with a bold new invention along the lines of the iPod or iPad, then it will exceed expectations. If Apple continues to rehash old ideas, tweak old products, and rely upon an erroneous business plan, then it’s time to abandon ship. This writer’s advice:wait for the next few product releases. If there’s nothing special, then get out before the Samsung and Google Inc (NASDAQ:GOOG)’s Android platforms take over.

Hunter Hillman has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.