Monday, September 24, 2012

10 Reasons Why Investors Should Worry About Apple



Doug Kass, President of Seabreeze Partners, has a new post on RealMoneyPro titled The Bear Case For Apple.

"The upcoming quarter will be big for Apple," writes Kass. "The fastest ever rollout for iPhone 5 will be accompanied by higher-than-expected margins, as there are two separate cost-reduced models now. Soon everyone will know that, and if not fully in analyst numbers, it will be in buy-side expectations."

1.    1.  "Quality vs. price: Apple is now selling less or equal for more money." Kass argues that competitors have caught up with Apple in terms of technology.  As such, they are now only offering a similar or worse product at a premium price.  Kass doesn't think this is sustainable.
2.   
      2.  "The Oracle of Cupertino: Steve Jobs is no longer around to convince consumers that his products are magical."  Kass notes that there appear to be internal disagreements, and that Apple lacks a clear voice.....


Read more: http://www.businessinsider.com/doug-kass-10-concerns-about-apple-2012-9#ixzz27P5NME7A

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