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Apple’s Cook Blames Trade War In Part for Slowdown
I think the trade war but one part of Apple’s troubles. The “scent in the wind” from sources I read has been for at least a year that Apple was hugely overvalued and ripe for a big selloff. Of course, the trade war isn’t helping. Still early, but U.S. futures look troublesome for tomorrow - partially on the Apple news.
That’s what happens when 1) you hit peak smartphone in the developed world, 2) sell them for obscene prices, 3) think the developing world can or will pay those prices for them, 4) your ‘innovation’ as of late SUCKS, and oh yeah ..... 5) you’re also caught in a trade war.
Hmmm, so who do we believe about Apple? I guess I'm going to go with Warren Buffet. It is a long term holding and is now at a great buy price (though I personally am holding out for even more drop to add to what I have).
From 11/14/18
Warren Buffett has further expanded his stake in Apple, new filings show. According to Berkshire Hathaway’s latest 13-F filing, Buffett added over half a million shares of AAPL to his portfolio over the last quarter.
“I don’t focus on the sales in the next quarter or the next year. I focus on the hundreds and hundreds and hundreds of millions of people who practically live their lives by it,” Buffett said referring to the iPhone. “And if you look at that little piece of whatever it is, it’s some of the most valuable real estate in the world.”
As user of 5 different Apple devices I recognize that I am paying for superior tech support and a convenient easy-to-use Apple infrastructure when I pay high dollar for their products. Always get their extended warranty / phone support. Have yet to speak with a phone rep who sounded like he / she was in some foreign country and struggling with English. Always easy to work with. In some cases I’ve had them stay on the line with me nearly an hour as we worked through a particularly frustrating issue. Of course, this kind of support costs extra money.
All my music (about 200 albums) is stored in their cloud. For $25 a year you get icloud storage - plus the ability to rip your own CDs to the cloud if you want. Never a virus issue. About as reliable and problem free as it gets.
Now the price / cost / affordability issues: (1) Not all users want or can afford that high degree of support and the Apple infrastructure. (2) And, there’s no doubt some competitors are producing equal - probably better - hardware and selling it for less. So, it’s a tough ballpark to play in.
Been through a couple past equity train wrecks. Generally tech runs hot and hard for couple years - than topples over and leads the other indexes on the way down. Nothing new in that regard. Point about Buffet well taken. He’s not a dumb.
in 05 and ~11, my son did ungrad and, I think, mba research papers on apple, and each time implied purchasing, and each time I passed, because overpriced, you know
regret
(kind of like snowball once saying of tillinghast, 'every time I have sold, I have come to regret it')
Comments
That’s what happens when 1) you hit peak smartphone in the developed world, 2) sell them for obscene prices, 3) think the developing world can or will pay those prices for them, 4) your ‘innovation’ as of late SUCKS, and oh yeah ..... 5) you’re also caught in a trade war.
All my music (about 200 albums) is stored in their cloud. For $25 a year you get icloud storage - plus the ability to rip your own CDs to the cloud if you want. Never a virus issue. About as reliable and problem free as it gets.
Now the price / cost / affordability issues: (1) Not all users want or can afford that high degree of support and the Apple infrastructure. (2) And, there’s no doubt some competitors are producing equal - probably better - hardware and selling it for less. So, it’s a tough ballpark to play in.
Been through a couple past equity train wrecks. Generally tech runs hot and hard for couple years - than topples over and leads the other indexes on the way down. Nothing new in that regard. Point about Buffet well taken. He’s not a dumb.
regret
(kind of like snowball once saying of tillinghast, 'every time I have sold, I have come to regret it')