Apple plunged today, dropping by more than five percent. The big institutional investors are angry because Apple won’t give them a “cheap” iPhone.
This they want for the downscale market, especially overseas, and Apple won’t oblige. Apple, you see, doesn’t make cheap products; it only makes great products. So yeah, there was blood on the Street today, as Apple got killed.
No matter. I’m unfazed. I think Apple knows what it is doing. After all, it’s only the most successful company in the world! It’s only effected a revolution in how we communicate, work and play!
Sure, Google and Samsung sell a lot of phones, but Apple makes a lot of money. Serious money — far more than Google and Samsung can ever hope to make on their Android devices. Heck, Google gives away its Android operating system!
But don’t take my word for it. Listen to billionaire investor Carl Icahn, who, today, purchased more Apple.
I really think Apple is one of my best right now. At these levels, we’re buying quite a bit of stock… We bought quite a bit today in the $465, $470, $467 range, $466…
That’s not to say it won’t go any lower — I don’t really look at it from day-to-day and we don’t try to fix what the market is going to do.
I think if they do a big buyback, that’s going to be a major plus. But I also think the products are pretty good; and I think they’re going to get a lot of business from China, and they’re going to do great anyway. You don’t see companies like this with this kind of brand.
No, you don’t. Apple is a great American success story, whose final chapters aren’t even close to being written. Think I’m wrong? Think again. Rocco Pendola nailed it:
As Tim Cook explained at a recent conference, the living room might as well be a new area, given the lack of innovation there over decades.
That’s the sweet spot for Apple. A high-end television set blended with its set top box, a home theater compatible with existing Apple devices. That’s where Apple can make it happen. And that’s where I think it plans to make it happen. Not on your wrist, but in your living room.
And that’s why I refuse to count out Apple.