Is Apple Really Rotten to the Core?

In the video below, Fool analysts Jeremy Phillips and Austin Smith discuss Apple (NASDAQ: AAPL  ) and whether, after falling 30%, it's truly rotten to the core.

Apple's core is its great portfolio of products, and Austin thinks those products still command industry-leading margins. It's also in the company's ability to innovate. The new iPad mini is one of the best electronic devices Austin has ever owned.

That's why Apple's sales numbers continue to be up across the board.

So, Apple's absolutely not rotten to the core, Austin says.

Its fall differs from those at other one-time market darlings like Green Mountain Coffee Roasters (NASDAQ: GMCR  ) in that Apple has no significant worries like accounting concerns, he says. Green Mountain also posted numbers that justified a price drop.

Apple's fall was more similar to that of Netflix (NASDAQ: NFLX  ) , which pulled back after a great run, only to later rally again. The core of the business never changed.

Apple's core remains intact. It still posts industry-topping margins, and the demand for its products has not diminished.

f you want to learn what's really driving Apple today, The Motley Fool's premium Apple research service has the answers. You're invited to join the members that had the courage to take control of their wealth, simply click here now to get started.


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  • Report this Comment On March 21, 2013, at 10:02 PM, AboutYourCat wrote:

    Apple and Netflix shouldn't even be mentioned in the same article let alone the same sentence..... my god do you ever read your words or listen to yourselves?.....

    right now Netflix is precariously balancing on a House of Cards..... and the slightest breeze will have them homeless in no time.....

    and yes..... pun intended.

  • Report this Comment On March 22, 2013, at 8:04 AM, evanhlea wrote:

    Apple needs something for the future in order to command a higher stock price. Their smartphone is no longer the best by a longshot. Samsung and Nokia have put out comparable phones and the tablet market has become saturated. What made Apple the unbeatable force it was 5 years ago was it's innovative products. We'll continue to see a visionary type attitude from apple, and without Steve Jobs, I'm just not sure that they can continue to innovate at such a high level.

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