Yet Another Reason Apple's Still the King of Tech

It's no secret that Apple's (NASDAQ: AAPL  ) stock has taken a severe beating over the past few months, with an extra large chunk being taken out after the company reported earnings this month. Decreasing gross margin scared off many investors; Apple is supposed to be the titan of gross margin after all, right? In this video, however, Motley Fool tech and telecom analyst Andrew Tonner tells us to look at another one of Apple's numbers: its tablet market share. He notes that locking customers in to the phone/tablet shared ecosystem makes for an extremely sticky consumer experience, and at this insanely low multiple, Apple looks deliciously cheap.

There's no doubt that Apple is at the center of technology's largest revolution ever, and that longtime shareholders have been handsomely rewarded with over 1,000% gains. However, there is a debate raging as to whether Apple remains a buy. The Motley Fool's senior technology analyst and managing bureau chief, Eric Bleeker, is prepared to fill you in on both reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and more importantly, your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


Read/Post Comments (4) | Recommend This Article (3)

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  • Report this Comment On January 31, 2013, at 10:54 PM, TheTruth2013 wrote:

    Hey, Andrew!

    Although you continue to talk up Apple, maybe you should read this, Posted @ http://money.cnn.com/2013/01/31/technology/mobile/android-ta...

    NEW YORK (CNNMoney)

    IDC issued a preliminary report on global tablet shipments across the world revealing that we've hit a long-expected milestone: Android tablets seem to be outpacing the iPad.

    IDC's fourth-quarter estimates show the overall tablet market expanding rapidly, and Android is grabbing a large chunk of that growth. Apple (AAPL, Fortune 500) tablets -- which include the retina iPad and iPad mini -- dropped below 50% market share for the first time.

    Apple's fourth-quarter share of shipments came to 43.6%. It's still the top vendor by a mile, but the the combined market share of Android tablets -- coming from Amazon (AMZN, Fortune 500), Asus and Samsung, among others -- easily topped 50%.

    Smaller growth means smaller profits.

    Who is losing here?

    Quit shilling Apple!

  • Report this Comment On January 31, 2013, at 11:36 PM, TimKnows wrote:

    Tonner is the biggest BS specialist on this board. This garbage has to stop.

  • Report this Comment On February 01, 2013, at 2:02 AM, TechnoHistorian wrote:

    Puzzling sometimes how many Apple flameboys there are, trashing an American company that has led the way in innovation for a decade, and talking up a Korean company that has been fined a cool billion dollars for stealing ideas from Apple.

    Keep up the good work, Tonner. We need more sanity in Apple analysis!

  • Report this Comment On February 01, 2013, at 2:30 AM, deasystems wrote:

    Hey, TheTruth2013!

    Maybe you should understand this: The article you cited publicizes the pure nonsense from the numbers-for-hire outfits. Apple is the *only* manufacturer in the tablet (and smartphone) market that actually releases unit sales data. All the other numbers are pure guesswork by IDC and their ilk. There is absolutely no independent corroborating evidence to support the supposed market share numbers of Apple's competitors in the tablet space. Quite the opposite, in fact.

    Don't believe the nonsense.

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