There is no stock in the history of earth that has gotten (and gets) more media coverage than Apple. Every weekday there are dozens of stories written about the company and its stock price as well as video clips from Bloomberg and CNBC with experts telling us why the stock is doomed or set to take off. The amount of positive and mostly negative coverage this company gets is truly astounding and it is nothing short of a soap opera.
As an Apple stock owner, I closely follow what is being said about the company and sometimes I honestly feel I know more than some of the Apple bashers and fan boys I am reading or listening to. Thats not to say I am any sort of an expert but it is obvious to me that writing and talking about Apple brings in eyeballs and mouse clicks which translate to money. Thus, people write about Apple whether they know anything or not just because it is their best chance to make money.
Apple’s Stock Price: Always The #1 Topic
The big question always has to do with the stock price which has fallen from a high of about $700 down to $390 and then back up into the mid $500 range where it is now. To date I am sure that thousands of analysis and opinion articles have been written on why Apple has underperformed the market for so long.
Apple Is No Longer Innovating: Where Are The New Products?
By far the number one reason people cite for the decline of Apple is that they have done nothing since Steve Jobs death in terms of innovation and bringing new products to market. The iPad was introduced in April of 2010 and that makes 4 full years now with no new product category from Apple. Since that time they have only brought new versions of the iPhone and iPad to market as well as updates to the iPod, iMac, Macbook Pro, and Macbook Air lines.
No matter how much money Apple makes (and they make more than many small countries), updates to old product lines alone are not making the Apple skeptics or investors happy. On a daily basis they hammer Apple by saying that until new product lines are introduced, the company is dead. Over and over and over again I have had to listen to the reasoning that Apple can no longer invent and innovate without Steve Jobs.
Do Apple Naysayers Really Believe Apple Had Nothing In The Pipeline When Steve Jobs Died?
If I am to believe these skeptics that Apple is doomed to failure and everything died with Steve Jobs, then:
1) I am being asked to believe that there was nothing planned for the future of Apple at the time of his death. Or, that everything in the pipeline has turned out to be a dud and will never see the light of day.
2) I am being asked to believe that the multi billion dollar spaceship office complex that was planned and is now being built was all done with no new products or direction mapped out for Apple’s future.
3) I am being asked to believe that for the many months and years prior to Job’s death, the 1000’s of Apple employes were working only on existing products and NOTHING new.
4) I am being asked to believe that Jobs, this great visionary of a man that everyone says was responsible for all of Apple’s successes, was really so irresponsible that he stopped all R&D and made sure that no new products would ever come from the company.
5) And finally, I am being asked to believe that Jony Ive is still working at Apple and designing nothing more than software. Is he lying in his recent interview where he says that we are at the very beginning of the explosion of new technological innovations? I think he is still at Apple because that is the best place for him to design new products.
I’m sorry but I don’t believe any of these things to be true or that they even could be true. To think that Apple had nothing up their sleeve at Steve Job’s death is preposterous. It is ridiculous.
I’m Looking To Buy More Apple Stock
Right now Apple’s stock price is so low that the possibility of new products isn’t even factored in. I refuse to believe that Jobs had an empty pipeline of products and ideas when he died. I firmly believe that sooner or later Apple will announce an iWatch, a new iTV, a new payment processing system, or something else that falls under the “new product category”. I also believe a bigger screen iPhone 6 will materialize later this year and that it will take some market share away from Samsung and the other smartphone makers. In short, I think 2014 and 2015 will be good years for Apple.
Because of that belief, I want to buy more Apple stock but I’d like to get it closer to $500 a share than it is now if I can. Knowing the history of this stock, I think the next earnings period will perhaps give me that opportunity so I am going to patiently wait. Until official concrete news of a new product is announced, there will most likely be more buying opportunities closer to $500 in the near future.