For how much longer can the likes of Apple excite?
Can they survive by just bringing out newer and newer iPhone’s each year?
Probably not, and whilst they are constantly looking at new products – electric cars, TVs, augmented reality – nothing is on the near horizon.
So, expect its share price to tire.
Their electric car concept looks cool – but I can’t reach out and touch it yet. Weightless…:
Let’s come back to earth and look at the action – which is best seen in a weekly chart:
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Apple (AAPL:NASD) - Weekly Line Chart
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Click to Enlarge
Another meteoric techy rise. And most of the big move has been post Steve Jobs. To be fair the creative fiend and genius did lay the foundation for the impressive move we have seen since his death.
It is a stock that has had plenty of pullbacks and thus ‘’buy in’’ opportunities.
One more ‘’buy in’’ chance is likely to be on offer in the coming 12 months or so.
A pullback is well over due.
If you look at the gradient of the last 6 months move, it has been an especially striking one after such a move. But even this looming price-weakening may only bring it back to current levels.
In no way serious it seems.
New products or category killers aside, Apple like other techy giants have many issues to deal with. Least of which; Tall Poppy syndrome - meaning it is being hunted down by many governments who fear its power; the vagaries of being all-of-many things to China – producer, competitor and supplier to this insatiable massive market; being hunted down as very sharp tax planner; and the effects of US trade tariff punishment being dished out to China.
These challenges may still not be enough to persuade institutional and retail investors to desert the stock.
Life is tough at the top no matter what.
Apple will never be far from the headlines.
Enjoy the ride
Tom Scollon
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