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Sat, Nov 21, 2009 - 08:25 AM EST  —  AAPL: 199.92 (-0.59, -0.29%)  |  NASDAQ: 2146.04 (-10.78, -0.5%)

Apple primed to shock the naysayers yet again
Thursday, January 24, 2008 - 10:47 AM EST

"This week, you can bet the true believers around Apple’s Cupertino headquarters are thinking back to 2001, while loading up on some suddenly discounted shares. Talk about an after-Christmas bargain: Apple stock is trading at about $140, 30 percent off its December 28 high of $202.96. That’s about the same place where Wall Street valued the stock six months ago, before it became clear that the new iPhone would sell nearly 4 million units in 200 days," Jon Fortt writes for Fortune.

"The most recent ding to Apple stock came Wednesday, after the company turned in the best quarter in its history. The stock dropped nearly 11 percent. Depending on whom you ask, the stock got hammered because of soft iPod growth, tepid revenue guidance, or plain old investor fear," Fortt writes.

"But there’s also plenty of reason to believe Apple can innovate through this downturn like it did the last. First is stability. Apple has stockpiled more than $18 billion in cash, giving it more than enough cushion to think big, take risks, and make mistakes," Fortt writes.

"Second is the iPhone. Like the iPod before, it’s a hit — even though it is solely distributed through AT&T in the U.S. and through other exclusive carrier arrangements abroad, it seems to be gaining traction... Apple sold about 300,000 iPhones in just the first two weeks of 2008. If that pace keeps up — and it easily could as Apple expands the iPhone’s availability in Europe and Asia — then Apple could sell as many iPhones this quarter as it did during the holidays, an impressive feat," Fortt writes.

"Last is the iPod touch. Largely glossed over in Apple’s earnings announcement was the executive team’s emphasis on the fact that the company doesn’t view this thing as just an iPod — it’s a wireless computer. And the iPod touch will fully come into its own at the end of February, when Apple opens the door for outside developers to build software for it. What the iPod touch becomes then is an open question," Fortt writes. "Will Apple invent a way for it to become a viable gaming platform? Will clever engineers come up with cooking programs, GPS attachments, video recorders, or other ideas to spark demand for the gadget?"

"If so, watch out. Sales of the iPod touch and iPhone might just push the stock price higher again — and if so, Apple executives will relish the chance to tell the story of how investors, once again, underestimated Apple," Fortt writes.

Full article here.


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Jan 24, 08 - 10:49 am Comment from: anthony007

In my opinion, some of that 18B should be used for stock buyback. Not sure why they just sit on it all the time.

Jan 24, 08 - 10:52 am Comment from: Macaday

That $18bn helps make Apple a gold standard company. Jobs wouldn't settle for anything less...

Jan 24, 08 - 10:57 am Comment from: Tom

"Apple executives will relish the chance to tell the story of how investors, once again, underestimated Apple"


I couldn't agree more!

Jan 24, 08 - 11:01 am Comment from: Cubert

"cooking programs" ???

WTF???

Jan 24, 08 - 11:03 am Comment from: Cubert

The second half of OS X (ie. 10.5 and on) is about incorporating touch technology. I think OS 11 will bring this into a 3-D space.

Jan 24, 08 - 11:04 am Comment from: Zune Tang®

Who are these 'naysayers'? Just because a few clear thinking pundits tell the truth you MAC lemmings get your panties in a bunch and start calling these realists names. Sometimes the truth hurts.

And as far as $18,000,000,000 in cash goes, they're gonna need it to stay afloat after the glossy screen lawsuits, MAC Book Air debacle and Microsoft's introduction of the Zunephone. Buh-bye Apple.

Your potential. Our passion.™

Jan 24, 08 - 11:07 am Comment from: mr_matalino

Don't forget the Mac. 50% growth from last year. The iPod as we know it may be over, but "the first 30 years were just the beginning"

Jan 24, 08 - 11:08 am Comment from: macaholic

18 billion allows you to be "master of your own domain"

Jan 24, 08 - 11:11 am Comment from: rahrens

And in the call the other day, either Steve or Oppenheimer said that the $18B was for use for "acquisitions". So they're looking at buying somebody - at some time in the future. And $18B will buy a pretty good sized somebody.

Jan 24, 08 - 11:12 am Comment from: Daner

Step 1: Absorb Bento into iWork
Step 2: Include iWork on all new Macs
Step 3: Include iWork Express on iPhone and iPod Touch

The phone/pods will never be ideal for creating content, but make it easy for people to update, present and share from them and you've got something VERY useful.

Jan 24, 08 - 11:13 am Comment from: pr

Cubert,
Cookbooks are among the best selling books perenially.

Jan 24, 08 - 11:19 am Comment from: qka

18 billion allows you to be "master of your own domain"

My web hosting service allows me to be "master of your own domain" for $5 a month.

Apple is paying too much!

Jan 24, 08 - 11:25 am Comment from: @ Daner

I like your ideas about iWork, Bento, and integration into mobile devices. Props.

Jan 24, 08 - 11:27 am Comment from: God

@Zune Tang®

Your stupidity, my amusement!

Jan 24, 08 - 11:29 am Comment from: silverhawk

I bought a Touch in December and thought it was a great iPod. Then the update came out and I've changed my mind: it's a fantastic little computer. The map function works great. I live in the greater Minneapolis/St. Paul area. My daughter has a GPS device in her car. It still routes you over what was the I-35W bridge that collapsed. Not my iPod Touch! If I need directions I input them while at home and follow them. It's always right so I don't need to get new directions while on the move. I suppose if I did I'd just stop in the parking lot of McDonalds or Starbucks; they're everywhere.

Jan 24, 08 - 11:32 am Comment from: Ampar

"And $18B will buy a pretty good sized somebody."

The American unit standard is measured in "ballmers."
The metric equivalent is in "helús" which replaced "bransons."

Jan 24, 08 - 11:35 am Comment from: Don't Panic

Solution to fears that your retirement plans, courtesy of AAPL, have crashed and burned, do this:

By more AAPL... and, hope Steve has learned the lesson of what matters - it's not toys and gadgets, it's world class computers and not just those that meet the standard of being better than the worst.

Last chance to buy AAPL at below $135... again.

Jan 24, 08 - 11:42 am Comment from: silverhawk

Oh, the weather widget on the Touch also works great. When I woke up it was a minus 16.5 F. It's warmed up now, it's only minus 6.5 F.

Jan 24, 08 - 11:43 am Comment from: MorningSunshineBlues

So Apple is supposed to bounce back on opening the iPhone and Touch to developers? I suppose it's possible if someone creates an anti-recession fears app. I don't believe Apple has control of the market and are just waiting. I think time will fix it as long as Apple doesn't make any major mistakes (expensive movie rentals and a skinny, expensive lap top for no demographic seem to be out of the way.

Jan 24, 08 - 11:49 am Comment from: TowerTone

"Apple primed to shock the naysayers yet again"

That's what happens when you don't ground the chassis....

Jan 24, 08 - 11:50 am Comment from: Ampar

silverhawk: What planet are you on? Wow, that Touch has some great range!

grin

Jan 24, 08 - 11:53 am Comment from: Nate

Democrats are diseased!

Jan 24, 08 - 11:54 am Comment from: Ampar

"expensive movie rentals and a skinny, expensive lap top"

It must really suck to be that poor. Would you like government vouchers to help you out?

Jan 24, 08 - 11:59 am Comment from: dallas

Stupid me,

I bought more shares when the stock dropped to $180. I thought I was cashing in. Oh well.

Jan 24, 08 - 12:00 pm Comment from: Jayavarman VII

@Ampar

Silverhawk is obviously from my former home, the Arctic Wasteland of Canada, where minus 16.5° F is just a balmy spring morning.

Jan 24, 08 - 12:04 pm Comment from: Bizarro Ballmer

buy now before the next cheaper iphone comes out for the holidays. Smaller, cheaper, entry level phone.
It's gonna be a killa.

Jan 24, 08 - 12:06 pm Comment from: Think

My wife just stayed at home with a sick kid yesterday. She decieded to get a movie on Payperview. I asked how much it cost, $3.99 she replied. Hmmm, seems Apple rental pricing is just right.
So to recap: Sick kid, 6 degrees outside, wife does not want to leave to go to rental store. Once the tipping point hits for HD TVs in houses, then Apple's plan will take off.

Jan 24, 08 - 12:08 pm Comment from: Truth

Zune Tang:

MAC: Media Access Control address
Mac: Apple computer

You are a true douchenozzle. Go back to the cave you crawled out of.

Jan 24, 08 - 12:08 pm Comment from: Rich

Apple stock will boune back but 2008 is going to be a quite year for Apple innovation overall. Apple has just revised down the iPhone orders for the 2nd half and franky iPods may have hit their saturation point. Revenue will continue with iPhone contracts, music and movies via iTunes but no new software or Mac's or hardware. Here in my opinion is what I see as the possible need for new products:

-Video iPod: OK you gave us great movies now give us a better way to watch them on the go then the iPod touch. I want a bigger screen to watch the movies.

-I want a new Newton: OK maybe a small table PC that allows me to look at my calendar, eMails and take notes while going from meeting to meeting without typing. Oh..by the way Mossberg over at the WSJ only got 3 hours on his MBA..not good.

-Social Media Appications: iChat and iWeb are decent but there are a host of other better apps out there that do a better job. I don't use iWeb because it won't connect to my site without going through a 3rd party FTP developer. I don't use my .Mac account for my websites so stop trying to force me use it.

-Lion? OSX rocks but hey I don't want to wait every 15-18 months for an upgrade to the next OSX.

Jan 24, 08 - 12:09 pm Comment from: Buster

'Apple primed to shock the naysayers yet again'

Isn't that illegal? What do they use....Tasers?

Jan 24, 08 - 12:10 pm Comment from: silverhawk

Ampar

One must remain optimistic when living on the planet Uff Da! It's not far from hot dish.

Jan 24, 08 - 12:11 pm Comment from: colderthanyou

-31 here in Wisconsin this morning.

Jan 24, 08 - 12:11 pm Comment from: The Other Steve

Cubert, you beat me to the punch,

Cooking programs?!?!?

Oh my, I just had a flash back to the 80's. . . . . .
I'm back now. That was fun!

Jan 24, 08 - 12:13 pm Comment from: Demon

Stock buy back programs indicated weakness in the companies future plans. Apple doesn't seem to be indicating any type of weakness in the companies strategy or plans.

I'm still seeing iWork Mobile in the crystal ball & Apple making either a big acquisition "Adobe sized" or a few smaller acquisitions like "Avid" sized and "MOTU" sized. The few small acquisitions are more likely then a big acquisitions.

Jan 24, 08 - 12:19 pm Comment from: silverhawk

@colderthanyou

Minnehopeless is in the Riviera of Minnesota. Up north in Hibbing it was 40 below F. Take that!!

Jan 24, 08 - 12:20 pm Comment from: Ray

The news is that all U.S. Taxpayers will be getting a Treasury Check soon ($600 was the last gossip). Remember to buy Apple products with it.

Just my $0.02

Jan 24, 08 - 12:21 pm Comment from: Demon

BTW
Apple already owns Bento and FileMaker. File Maker the creator of Bento.

Ownership: FileMaker, Inc. is a wholly owned subsidiary of Apple Inc. (NASDAQ: AAPL).

Jan 24, 08 - 12:25 pm Comment from: silverhawk

If you need a good recipe program try MacGourmet. It's the best I've ever used. Works like iTunes. Available at Apple downloads. You need to know how to cook hot dish up here.

Jan 24, 08 - 12:34 pm Comment from: blucaso

Dallas, if you buy more now, then if you dollar-cost average the ones you bought at $180, they'll be cheaper. You're welcome.

Jan 24, 08 - 12:36 pm Comment from: Fallacy

Earlier, someone was suggesting a stock buyback. No way, it's a huge waste of money. One need not look beyond the morons in the financial biz that bought up shares at the top of the market and are now selling out to foreign sovereign wealth funds at a heavy discount. How does that add to shareholder value? The truth is that it doesn't.

Jan 24, 08 - 12:57 pm Comment from: Ampar

The low here in Atlanta last night was 19°F. And we think that's cold. Go ahead and laugh.

Jan 24, 08 - 01:04 pm Comment from: Olmecmystic

Come on, Poon Tang. Zunephone?!? I laugh at you.

Peace.
Olmecmystic wink

Jan 24, 08 - 01:33 pm Comment from: TowerTone

Wow! Can you imagine how cold it would be without global warming?

Thank you, Exxon!!!

Jan 24, 08 - 01:53 pm Comment from: DLMeyer

I missed the action yesterday. Should have sold my GE stock then. Still, I'd have been lucky to get AAPL for $133.84 yesterday ... so, y'all buy it up to over $200 again, earn me several thousands of retirement income. wink

Jan 24, 08 - 02:00 pm Comment from: Cubert

"The low here in Atlanta last night was 19°F. And we think that's cold. Go ahead and laugh."

Ah ha! You have given away your location! Now the search can begin.......hmmmm......no Ampars in the Atlanta phone book. Damn!!!

Jan 24, 08 - 02:10 pm Comment from: Ampar

Cubert: I didn't say which Atlanta. My weather widget defaulted to the one in Kansas.

Ah ha!

Jan 24, 08 - 03:00 pm Comment from: opie

Zune Tang®

Hey Zuney, are you still screwing Dell users with Vista?

Jan 24, 08 - 03:26 pm Comment from: MacFhearghaile

Well the daily interest on 18 billion has got to be hugh.

Jan 24, 08 - 04:00 pm Comment from: neomonkey

The news is that all U.S. Taxpayers will be getting a Treasury Check soon.

Not so fast, Ray. I know from personal experience (last rebate) that if one owes any back taxes there will be no check. The IRS will simply "absorb" it, just as they do yearly refunds. It's a scam.

Jan 24, 08 - 04:42 pm Comment from: Ampar

Nay. There, I said it.


"Well the daily interest on 18 billion has got to be hugh."

Hmmm. And all this time I thought it was Stephen Fry.

Jan 24, 08 - 04:46 pm Comment from: LastOneStanding

ZuneTang -

LMAO - the Zunophone!

If it's built as well as the first Zune was, my Apple stock is gonna soar!

My nephew got a Zune for Christmas when they first came out, Wife's brother is on the dark side, after two returns for battery and one for a frozen drive in the first 5 days, the store, on their own, exchanged it for a video iPod and a $25.00 iTunes card along with an apology for Santa's mistake. He's used it daily since. He loves it and my brother in law is still pouting.

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