In its annual Worldwide Developer Conference in San Francisco, Apple introduced iPhone 3GS, a speedier version of the iPhone, and announced a 50% price drop to $99. It looks like competition from Palm and Research in Motion and the recession have finally forced Apple to lower their price. Investors didn't like the news and brought the shares down 0.6% to $143.85.
Without any new revolutionary products announcement and Apple currently trading at a P/E of 26, the stock looks overpriced to me. Apple's days as a top growth stock are long gone and the company should be priced more as a consumer electronic business. I see the share price falling soon.
I do not have any stock position in any of the companies mentioned in this article at the time of writing of this article.
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