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Consumer Electronics

Why Apple (AAPL) Won’t Recover

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By Douglas A. McIntyre Published
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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

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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