New iMac Models Released iPods - for better or wose
Aug 31

When a company is overvalued, that is a direct response of general public opinion, interpretation of its financial situation, the stock market presence, advertising tips and tricks, and many other elements. When a huge corporation wants to dictate a false rhythm, meaning that it will advertise itself as being the greatest seller, their sales will rise because public opinion bows its head to manipulation very easily.

However, let us check a few facts regarding AAPL:

  • Number of stocks. AAPL holds number three position regarding their number of stocks in the USA today (Exxon and Microsoft being leaders). The reason why it holds such a good position is perhaps that the stock itself is overvalued, so even those who were skeptics will invest generously in the blink of an eye. Truth to be said, putting side-by-side Exxon services or Microsoft products, with Apple products are a little different. Of course, Macs and iPODs are good, but not nearly comparable with Microsoft technology.
  • Apple is standing on unreliable grounds. A small quake and the whole empire will shatter into pieces. Founder and CEO Steve Jobs is the sole visionary and most charismatic member who knows how he wants his products. Unfortunately, designer Jonathan Ive or Phil Shiller will never be able to take over that vision and that charisma.
  • The press is giving Apple a lot of attention. Wherever you turn your head, you will see a new Apple product concept, or hear about the release of an ultra-modern ultra-light high performance gadget. Nevertheless, what happens if they will fail to live up to consumer’s expectations?
  • It’s true that it makes astonishing profit from all their products, but still it cannot be put in the same line with top corporations already mentioned which truly rule the software, hardware, electronics gigantic market.

As a conclusion, there are certain factors, which speak in favor of Apple being a ruler (its sales); on the other hand, disadvantages dethrone it (quality and the fact that it is sometimes deliberately overvalued). It seems that Apples value is more media and hype based than actual value. People who play the stock market are for whatever reason hold the company’s stock in good stead maybe because they are afraid to let it fall. As gas oil taught us, investing in the ’safe'stocks may not always be the best option.

Comments are closed.