My partner and I will be investing in Apple, Inc. Over the past few weeks, there has been huge speculation about the popular iPhone which has sold only through AT&T from the time it was first released (2007) coming to Verizon Wireless. With Apple's stocks already increasing from 124 to 241 over the last year, we feel that this new deal with Verizon will send Apple stocks way above the already high price it is selling at. "If sales of iPhones on Verizon have minimal cannibalization of AT&T iPhone sales, then Apple's global mobile phone market share could increase to 5.9% rather than the expected 4.4% in 2011" (Trefis).While the phone sales of the iPhone plays a big role in our decision to invest, we are also looking closely at the sales of the recently released iPad, which sold over 300,000 in it's first day. While this is only average compared to the iPhone 3G sales, Apple is already planning on new apps and updates to make the iPad even better. In addition, within the few days it has been out, the iPad has already affected the prices of netbooks "Reitzes links the dipping netbook prices to the iPad's April 3 debut...the iPad costs more than the average netbook, but packs features like a large touch-screen and integration with Apple's iTunes and new iBooks application that could sway consumers away from typical netbooks" (Elizabeth Woyke.)
With it's possible plan with Verizon, and release of the iPad, we feel that Apple sales will increase, and therefore raise stock prices. Many people who have Verizon and don't want to switch plans just to get the iPhone will be overjoyed by this new plan, and even my mother wants to buy an iPad! In addition, I saw 3 people on the train today with iPads!
by Jenna Weinblatt
No comments:
Post a Comment