Apple (AAPL), the biggest company still by market capitalization in the US, didn’t have the sort of effect it was hoping for with the launch of two new smart phones: its share price fell sharply as analysts expressed their disappointment with the latest gadgets: the iPhone 5S and iPhone 5C.
Apple, once the technological and applications leader has become an innovation follower, and it proves our point more and more, as the company management is struggling with its corporate vision and business plan and original strategy. Recent product announcements, like the iWatch, and “cheaper” iPhones are confirming our 2012 concerns, which we published in our leading “Sell/short” AAPL report on October 3rd 2012 (AAPL US$ 685). Apple’s business model has run out of momentum, growth is declining, and AAPL is forced by market and consumer trend dynamics to test smaller, cheaper, and lower value added gimmicks, which are going to be having a negative affect on AAPL’s margins, which we identified as unsustainable, in our last years original report.