RE: RE: RE: RE: Gene Munster on CNBC The talk of $1000 AAPL price I've seen float around lately, with Munster predicting this in 2014! It seems the message is gaining extra steam these days with all the analyst buzz about RIMM going bankrupt. Smells a lot like a bubble to me...each of these pro articles--now found everywhere--make all the same arguments, but always conveniently forget one.
For Apple to jump to a trillion dollar evalaution they have to sell a whole lot more Ipads and iPhones and keep their same margins. With product erosion, this will be tough. Although the PE may appear reasonable, as growth potential lessens so will the PE...The fact is that the iPhone is the largest product category for Apple and one of the many reasons for its popularity is its price--every carrier subsidizes it so that they take a loss on the hardware in hopes of gaining on the data. Yes there are the iTards everywhere, but to be so mass market is no longer a special class of its own, so something has to be driving the new buyers. What happens when the carriers realize they are in a loosing proposition and decide to stop subsidizing phones? Apple will have to cut the price, squeezing margins.
As Buffet says, be fearful when others are greedy...
IFC