Time to Sell Apple
Apple has seen its profit slide for three straight quarters. The stock is down $80 from a year ago (down 13%). When Apple introduced two new iPhones in August many believed that both sales and profits would rise. IPhone sales are in fact up but iPad sales are not and sales of Macintosh computers are off. Profit was seven and a half billion for the quarter as opposed to eight billion two hundred million for the same quarter last year. With echoes of Microsoft in our ears is it time to sell Apple? Fundamental analysis of Apple must include not only its hot line of products but also the depth of the market to which it can sell. Apple keeps its profits high by making great products and pricing them on the high end. So long as buyers believe that the price is worth it Apple products will see and create profits. However, this is not necessarily a recipe for continued growth. Thus we wonder if it is time to sell Apple or just when that may be the best bet.