Apple just finished their iPhone event and I suppose the best way to summarize it would be “all the lawsuits now make sense”.
No redesign, no LTE, no larger additional screen sizes and judging by the fact that 3Gs with 4.x is pretty sluggish already, the same thing on 5.x is not very attractive mid-range play especially since it was already on sale for no upfront costs on contract. Sure it’s a top seller in US, but things won’t improve from here.
iPhone 4S will most likely outsell its predecessor in the same timeframe easily, but nothing will stop Android’s rise with the exception of Apple’s very strong position in the tablet space. Round that up with some i-dont-even-remember-anymore updates to iPods and you had a case for dumping the stock – for at least a little while:
The stock is now down only 1 per cent after being down over 5 per cent. Valuation wise I wouldn’t say its too pricey. Take away the 76 billion in cash and you have 265 billion market cap with about 23.6 billion in net income over the last 4 quarters and no debt.
Chart from StockCharts.com as permitted by their policy