24 September 2011

Apple: Is It Worth Hanging Onto? Factors to Consider Before a Panic Sale

Apple is one of the most successful electronics manufacturers in the world. Since they went public in 1980 they redefined the desktop experience, took the smartphone from obscurity to mainstream and made the tablet market viable. All of this under the watchful eye of Steve Jobs and, love him or loath him, few will argue his influence. Recently it was announced that Steve Jobs was stepping down as CEO due to his health and while it wasn’t surprising for most, it lead many to speculate about the future of Apple. Can the American electronic icon stay successful with out its iconic CEO? Here’s a look at a few factor to consider before jumping ship and selling off your Apple stock.

The Next iPhone
The last quarter earnings report, while extremely impressive, didn’t meet all expectations. Apple cited a number of reasons for this, one of which being the lack of an iPhone launch. New iPhone launches are a huge revenue source for Apple and this past summer was the first without a new iPhone announcement. Since then, rumors and speculation have been rampant, but the dust is finally starting to settle. According to evidence like display orders, and even a lost prototype in San Francisco, the new iPhone (likely the 4S) will be available before Christmas. This should be more than enough to convince most to hold off on a sale at least a little longer. While this likely won’t be a huge improvement like the iPhone 4 was over the 3GS, the sales will be phenomenal.

The MacBook Decline and the iPad Explosion
Another reason for not meeting everyone’s expectations was the decline of MacBook sales. Apple stated that they believed some consumers decided to buy an iPad rather than a MacBook. While this sounds bad, Apple responded by cleaning up its MacBook line. The white MacBook was trimmed away entirely and in its place are two lighter and brighter MacBook Airs. Trimming the fat will go a long way to ensure profitability long term. Credible sources are also claiming that Apple plans to split the iPad into two lines. The first line will be a standard iPad like we currently have; the second will be a more powerful and more expensive iPad Pro line. This strategy has worked very well in MacBook sales and given the amazing popularity of the iPad, it will likely work just as well here.

Author's Bio:
Maria Rainier is a freelance writer and recent graduate of Elon University. She is currently a resident blogger at an online schools resource site, where recently she’s been researching her theology degree online and blogging about student life. In her spare time, she enjoys square-foot gardening, swimming, and avoiding her laptop.


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