Message to Apple Inc. (AAPL) Investors: Don’t Panic About the Galaxy S4

Losing its effective monopoly does mean that we won’t see a repeat of Apple’s historic growth rates. But then the shares no longer price in such growth. On a P/E of 10, they’re trading at barely more than half the S&P 500 average.

3. Apple’s products are “sticky”
Brand loyalty is fickle in this business. Some people stay with formats they’re familiar with while others chase the “coolest” product. But there’s some stickiness in services such as iTunes and iCloud. Apple’s big customer base won’t evaporate overnight.

4. Apple is flush with cash
The debate over Apple Inc. (NASDAQ:AAPL)’s $140 billion cash mountain has gone quiet. But so much cash gives the company a lot of room to maneuver, and dividend prospects look brighter. The cash hoard makes the valuation look even more attractive, too.

The article Message to Apple Investors: Don’t Panic About the Galaxy S4 originally appeared on Fool.com.

Tony Reading and The Motley Fool own shares in Apple. Motley Fool newsletter services have recommended buying shares of Apple and creating a covered bull call spread position in Apple.

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