There is too much bad news in the pipeline and no good news likely to appear over the next three months for Apple (NASDAQ: AAPL) to recover much from its current level of $128.
The "unlock" rate for the iPhone has scared off a number of Wall St. investors. That percent is put at 20% by Citigroup and Apple gets nothing on the back-end from a carrier on any of those handsets.
Friedman Billings recently reported that its channel checks showed that the number of iPhones and iPods being built is slowing. Mac units are increasing, but not enough to offset a significant drop-off in the growth of the other two devices.
In terms of competition, both Nokia (NYSE: NOK) and Sony Ericsson have said that they will push their smartphone sales in the US harder because each of them has modest market share. With RIM (NASDAQ: RIMM) and Apple holding the high ground in this segment of handsets that mean that the overseas vendors will have to take aim at the iPhone and Blackberry if they hope to pick-up sales.
Apple may have one piece of news which could pop the stock. A 3G versions of the iPhone has been anticipated for some time. Sales are not being helped by having the device running on a 2.5G network. But, that is not much news to offset a series of perceived weaknesses.
Douglas A. McIntyre
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
