I've made the case several times that Apple Inc. (Nasdaq: AAPL) was over-cooked, most recently last fall when the company was flirting with $700 a share.
Each time I did I was taken to the woodshed by the legions of Apple fans who couldn't reconcile their passion with their profits.
iHere we go again...
Following earnings that "beat" and revenue that fell short, the company dropped $48 billion, or roughly 10%, in afterhours trading on Wednesday. And still more on Thursday in early trading.
I think this is just the beginning of a protracted sell- off and my argument really isn't that fancy. In fact, it comes down to two very simple points:
Apple's (Nasdaq: AAPL) Siri Would be Nothing Without this Company
WWDC 2012: Five Things to Expect from Apple (Nasdaq: AAPL)
Going by the predictions so far, Apple Inc. (Nasdaq: AAPL) will have plenty to talk about at Monday morning's (June 11) Worldwide Developer Conference (WWDC) keynote.
And this year's edition, the first WWDC without iconic founder and CEO Steve Jobs, figures to be scrutinized even more closely than usual.
WWDC is Apple's annual gathering for those software developers who create apps for its Mac and iOS (iPhone, iPod Touch and iPad) platforms. But the show is also an opportunity for Apple to unveil new features and products, which is why WWDC attracts a great deal of media attention.
Exactly what Apple will unveil at events like this has long sent tech pundits into fits of wild speculation. The company's secretive policies just add to the mania.
Sorting through the cacophony of rumors and speculation, Money Morning has distilled what to expect - and not to expect - from WWDC 2012.
Let's first go over some things Apple almost surely will not be talking about at WWDC 2012.
The Apple TV: If Apple is indeed working on a full-fledged television set, you won't see it at WWDC. In fact, this device may not turn up until early 2013 (and Apple will hold a "special event" when it does).
The iPhone 5: The next generation iPhone is expected in late September-early October, a year after the iPhone 4s debuted. It probably won't even be mentioned in Monday's keynote.
iPad Mini: Rumors about a 7-inch version of the iPad (which sports a 9.7-inch display) have been percolating for months. But such a beast, if it exists at all, won't appear at WWDC.
So what does Apple have up its fashionable sleeve this year? Here are the five most likely candidates:
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Post-PC Era Poses Challenge to Techs: Adapt or Face the Consequences
The accelerating transition to mobile computing devices - such as smartphones and tablets - will drive tech companies to adapt to shifting consumer preferences or risk getting left behind.
Although they haven't yet tossed out their desktop or laptop PCs, more and more people are adopting mobile devices for such activities as checking e-mail, browsing the Web, playing games and interacting with social networks like Facebook and Twitter.
Indeed, the recent success of Apple Inc.'s (Nasdaq: AAPL) iPad, for instance, is just the one example of an ongoing paradigm shift that has come to be known as the "Post-PC Era."
Seven Reasons the Apple iPad Will Remain King of the Tablets
Apple Inc. (Nasdaq: AAPL) today (Wednesday) is expected to launch the iPad 2 - the latest iteration of a tablet device that has revolutionized the mobile computing segment.
Indeed, while most of its competitors have yet to release even their first tablet attempt, Apple is already at work on its third, which shows just how entrenched Apple's lead is in this relatively new and fast growing market.
The debut of the iPad last year ignited a tablet market that had languished for nearly a decade. Apple sold 3 million iPads in the three months following the device's April release, compared to just 2 million total tablets sold in all of 2009.
As with the iPod and iPhone before it, the iPad transformed its market and established Apple as its trendsetter.
Research firm IHS iSuppli (NYSE: IHS) expects sales of media tablets like the iPad to skyrocket from 17.4 million units worldwide in 2010 to 202 million in 2015. It sees the overall tablet market (which includes "PC-type" tablets with more robust computer abilities) to grow from 19.7 million in 2010 to 242.3 million in 2015.
With so much potential in this relatively new market, competitors - such as Samsung Electronics Co. Ltd. (PINK: SSNHY), Hewlett-Packard Company (NYSE:HPQ) and Research in Motion Limited (Nasdaq: RIMM) - are releasing tablets of their own.
However, the iPad's competitors, even those using Google Inc.'s (Nasdaq: GOOG) Android operating system, face an uphill battle in their quest to knock Apple from its early dominant position in the tablet segment of mobile computing.
It's true that the iPad's share of the tablet market dropped to 75% in the fourth quarter of 2010 from an unsustainable 95.5% in the third quarter. But it's likely that iPad sales will stabilize at a high level, with Apple holding at least 50% of the market for years to come.
Here are seven reasons why...
Question of the Week: Readers Respond to Money Morning's Technology Trends Query
Apple Inc. (Nasdaq: AAPL) delighted smartphone consumers and enthusiasts of technology trends when it unveiled its new iPhone 4, which will go on sale in the United States on June 24. The fourth-generation iPhone upgrades previous versions with a front-facing video camera for video calls, a higher-resolution screen, slimmer body, and an operating system that accommodates multitasking ability.
Chief Executive Officer Steve Jobs referred to the phone as the "biggest leap we have taken since the original iPhone." It's aimed at keeping the company's momentum going as Motorola's Droid phone, which uses Google's Android system, has edged some market share from Apple.
Apple's iPhone and iPad have helped supercharge the mobile-communications market. Those products - and others - have helped make sure that consumers and companies alike are inundated with new technologies, new applications, and a slew of new products. All these new options have potential buyers asking such questions as "Can this help me? " or "Do I need one? " or "Should I upgrade? "
We Want to Hear From You: How Have New Technology Trends Affected You?
Apple Inc. (Nasdaq: AAPL) delighted smartphone consumers and technology enthusiasts Monday when it unveiled its new iPhone 4, which will go on sale in the United States June 24. The phone upgrades previous iPhone versions with a front-facing video camera for video calls, a higher resolution screen, slimmer body, and an operating system that accommodates multitasking ability.
Chief Executive Officer Steve Jobs referred to the phone as the "biggest leap we have taken since the original iPhone."
It's aimed at keeping the Apple momentum going as Motorola's Droid phone using Google's Android system nabs some market share from Apple.
Hot Stocks: Apple's iPad Picks Up Where Amazon's Kindle Left Off
When it unveiled the Kindle e-reader in late 2007, Amazon.com Inc. (Nasdaq: AMZN) created a whole new market for digital books, newspapers and magazines.
Now industry innovator Apple Inc. (Nasdaq: AAPL) is taking that market to an entirely new level.
After months of spirited speculation, Apple on Wednesday introduced a full-color e-reader that doubles as a netbook.