What is Apple’s Uneven Bounce About?
Another report, from IDC and regarding tablets, predicted that Apple would lose some of its share of the market it has hitherto dominated to Google’s (NASDAQ:GOOG) Android and Microsoft’s (NASDAQ:MSFT) Windows. Then, Nokia (NYSE:NOK) and China Mobile (NYSE:CHL) announced a new partnership, leading to speculation that the Finnish company’s growth in China may automatically imply Apple’s fall. Some worried if the deal may be mutually exclusive, leaving Apple in the cold when it came to sharing the profits of the world’s largest carrier.
Other general concerns include Apple’s product lineup for the coming year and the debate regarding the fiscal cliff.
“The wind blows slightly from the south instead of the east one particular morning and the stock is down 6 percent,” Hudson Square Research’s Daniel Ernst, one of the analysts puzzled by the negative mood, told Reuters. “It makes no sense. There are lines around the block for their products all around the world. No other company has that.”
The bulls continue to insist that there are no obvious reasons for worry, as the scope for growth in the smartphone and tablet market was still strong, there were real murmurs of an Apple TV next year, and margins were as high as ever. The buy recommendations have not stopped raining down.
Topeka Capital’s Brian White, arguably the biggest Apple bull, said he was ever confident in the company. “Given our view that the fundamental story around Apple remains strongly intact, we believe this latest decline is setting up another attractive buying opportunity,” White said, according to The Wall Street Journal. “Once the tax-related selling abates, the stock will move sharply higher.”
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