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Do You Invest In A Company That Sells A Product That People Wait In Line For Days For Amidst An Awful Economic Environment?

11 July 2008 4 Comments

I have written before about Apple bucking the trend of the economic environment and thriving despite weak consumer confidence. Why does this happen? Superior products, superior service and a superior strategy. It is simply quite amazing. This week the next generation iPhone went on sale around the world to lines of people. Huge sales and sold out inventories were the result. Now, if you don’t own Apple (AAPL) stock, you do own a company that is having similar results with their products or services, right?

When retailers are posting awful numbers, Apple continues to deliver. When other huge companies struggle for growth, Apple continues to skyrocket. When some of the most prestigious financial institutions are broke and getting worse, Apple has 20 billion in cash. As people spend more money on gas, they spend more on Apple products.

It is truly amazing how Steve Jobs and Apple continue to push through the continuously higher standards and expectations and raise the bar again and again. Critics warned Apple not to go into the retail space. Apple has the highest sales per square foot of any retailer in the world. Experts said Apple doesn’t know the cell space and they should stick to computers and ipods, they have the most talked about phone in history! Did lines form for days of consumers waiting to purchase the latest Blackberry? I don’t think so.

My question to you, in a time when stocks are getting pummeled and the economy worsens, why are you not investing in this company? What executive are you placing your trust in over Steve Jobs? If you tell me a bank CEO, you should be slapped. Are you worried about valuation? They deserve the premium. Imagine what their numbers would be if the economy were strong!

I’m not here to demonstrate Apple’s success, Jobs and his boys do that for themselves… again, and again, and again. Go with the folks that repeatedly demonstrate success over and over and over. Steve Jobs is that guy. The Apple story isn’t over. Many thought it was over as ipod sales matured and flattened. Well, they were wrong as nobody hardly mentions ipods anymore and the company has more buzz than ever.

More retail stores in more countries, more global adoption of Apple products, more corporate penetration of Apple products… this is the direction of Apple and don’t you think it’s about time to get on board?

4 Comments »

  • GroveStreetJC said:

    Absolutely agree with you. I have invested heavily in AAPL (in and out over last two years) and believe that even in uncertain economic conditions, that AAPL has been able to sustain its business model. When the economy improves, AAPL is going to the moon.

  • Jon T said:

    Quite right!

    Apple is right at the heart and centre of a new digital revolution that will make the MS Windows/Office one (let alone the mobile phone one) all look a bit pathetic in comparison.

    I suspect many people will be choosing their spending more carefully AND making sacrifices to enable them to enjoy this revolution. After all, it has been promised for the last 15 years, and until now never delivered.

  • Hugo said:

    Agreed, I have bought and sold Apple shares over the past years and I’ve made a lot of money on those, even with the dip early this year. I have now invested most of my money in AAPL, because I think they will do even better. Better sales of Macs, more iPhones, lots of iPods. I have just upgraded my iPod touch to 2.0, and I can see the importance of apps to the future of AAPL. These apps will attract a lot of people to iPhones and iPod touch, because they make the device very versatile. Now imagine Apple coming out with a bigger iPod touch, let’s call it a Mactouch. A bigger screen, but with the same neat touch interface as the iPhone. This will be the next generation of computing, I’m sure. AAPL will double or triple its footprint in computers immediately. When will this happen? Within a year or two. Why so fast? Because the interface is ready, the only thing that needs to be done is to adapt programs like Word, Excel and others to accept the new way of computing, by touch.