
Apple’s new products, which include the iPhone 5 and mini iPad, have sold well, but perhaps not as well as many investors would like. However, no one has strong evidence that this Christmas season will be less than a sales triumph for the world’s largest public company by market cap.
One reason why shares have fallen may have to do with the profit-taking theory. Apple’s share price rose as much as 70% year-to-date in September. Wisdom would dictate that prudent investor take some of those profits and lock them in. It makes sense. What other mega-cap stock has delivered such great returns in 2012? But Apple remains higher by 30% so far this year, while the S&P shows an improvement of less than 10%.
Worriers about Apple’s shares should settle down.
Douglas A. McIntyre