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 $143.85.
Without any new revolutionary products announcement and Apple currently trading at a P/E of 26, the stock looks overpriced to me. Apple's days as a top growth stock are long gone and the company should be priced more as a consumer electronic business. I see the share price falling soon.
I do not have any stock position in any of the companies mentioned in this article at the time of writing of this article.
Things I want to buy from amazon
14 years ago
Posts
I wish you are right. I want to buy some AAPL. I believe their technology can go a long way.
ReplyDeleteThey have good technology. But, I'm just not sure how much consumers will be willing to pay for their products with their premium prices.
ReplyDeleteI take that using Apple is a culture. People are liking this culture.
ReplyDeletewell..many people will be willing to buy their products.. and now their products are not at premium prices... you never buy phones which cost more than 100$... but i never buy phones less than 100$... i usually spend 600$ for a phone.. and many people are willing to spend more than that!
ReplyDelete