Tuesday, December 18, 2012

Is Apple a Discount Brand?




Apple’s stock is down and its products are getting discounted at Walmart. Suddenly, the company is suffering on Main Street and Wall Street, the Daily Beast reports. 

The only thing more amazing than Apple’s unparalleled ability to get customers to pay huge premiums for its laptops, phones, and tablets is its ability to get investors to pay huge premiums for its stock. Between September, 2009 and September of this year, the stock roughly quadrupled in value, hitting a high of $702.10 on September 19. Everyone was on the Apple bandwagon, with roughly one out of five hedge funds reporting Apple as one of the top ten most highly held stocks. But since September, Apple’s stock has tumbled 26 percent, closing at $518.33 on Monday.
So why the big decline? Maybe Wall Street is starting to see Apple’s stock as more normal because consumers are seeing its products that way. Put another way. If Apple products are slowly starting to resemble commodities more than premium products, maybe the stock is simply following suit….

No comments:

Post a Comment