3 Reasons to Sell Apple

There are lots of reasons to love Apple  (NASDAQ: AAPL  ) , but why should you sell? In this video, Fool analyst Austin Smith gives three reasons to consider selling Apple. First, Apple is so big and has grown so fast, that future growth rates will likely not match its past. Second, Tim Cook is a great guy, but does he have the vision that Steve Jobs had? So far, Apple hasn't rolled out a truly revolutionary product, just variations of old stuff. Will Cook lead Apple into innovative products and devices, or just coast on Jobs' products? Lastly, Apple iPhones have largely saturated the Western markets, meaning future growth will have to come from emerging markets. Problem is, the iPhone is too expensive for many emerging markets. So Apple could roll out a cheaper iPhone but this would likely mean lower profit margins. Lower profit margins mean lower earnings growth.

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 reasons to buy and reasons to sell Apple, and what opportunities are left for the company (and your portfolio) going forward. To get instant access to his latest thinking on Apple, simply click here now.


Read/Post Comments (15) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On May 08, 2013, at 11:20 AM, ramkap wrote:

    Sophmoric

  • Report this Comment On May 08, 2013, at 11:22 AM, Davidrit3 wrote:

    Hack job with stale, tenuous arguments. Motley Fool is better than this.

  • Report this Comment On May 08, 2013, at 11:29 AM, larryw101 wrote:

    This is the most unfounded article I've read yet on Apple. Your saying to sell Apple now (May 2013) because Steve Jobs died nearly two years ago?

    Further, this same MF writer was saying to buy Apple not that long ago. What's changed in the company that much to do a flip flop now?

    This kind of so-called advice will cause readers to discredit whatever MF says anymore. One day this, the next day that. What gives?

    None of the the points talked about is recent news concerning Apple.

  • Report this Comment On May 08, 2013, at 11:35 AM, seanjohn19 wrote:

    Sophomoric*

  • Report this Comment On May 08, 2013, at 11:38 AM, seanjohn19 wrote:

    Agree with Larry and David. This video is stuffed full or ifs, mays and maybes. Also, if you're long Apple, don't publish a video as to why to sell it. Just because you work for the Fool doesn't mean you should act like one.

  • Report this Comment On May 08, 2013, at 11:40 AM, Mitchman63 wrote:

    Another fool embarrasses the community. Really Smith? Fundamentals are the reason to remain invested if not buy more! Apple has plenty more surprises around the corner. The list of reasons to remain with Apple is many times longer than reasons to sell.

  • Report this Comment On May 08, 2013, at 11:49 AM, johnnyrocks wrote:

    At some point MF should really check out what they put out there. This is one of the worst articles I have seen in a while on so many levels.

  • Report this Comment On May 08, 2013, at 11:49 AM, foolgood wrote:

    Might want to check your math. Lower profit margins in a new market don't automatically equal lower earnings growth. Especially if those lower-margin versions can be contained to the intended market. Overall gross margins will go down, that's it.

  • Report this Comment On May 08, 2013, at 12:10 PM, SamuelKirz wrote:

    Steve Jobs died on October 5th 2011. Apple's share price at the time of his death was $380.

    It's incredible that he could guide the company to those highs of $700 in September of 2012 from the grave...

  • Report this Comment On May 08, 2013, at 12:25 PM, reservoirs wrote:

    Agreed. It's shallow nonsense. There are too many market bloggers out there just trying to draw in a click of the mouse and generate some ad revenue. Sorry, i don't look at the ads.

  • Report this Comment On May 08, 2013, at 12:36 PM, GhotiFool wrote:

    SamuelKirz,

    Never underestimate the power of the "reality distortion field" it reaches us from beyond the grave.

    (kidding of course).

    This video was not worth the time I just wasted.

    All of these arguments have been around for months as the stock fell and now as it is moving up.

    MF this is just churn to generate web traffic, not cool.

  • Report this Comment On May 08, 2013, at 12:56 PM, larryw101 wrote:

    Motley Fool should be editing these articles and videos more carefully. How can anyone have confidence with what they read on here when it changes the next week? MF's credibility is suffering greatly. I would not believe a thing this says.

    Doesn't MF see this?

  • Report this Comment On May 08, 2013, at 1:01 PM, larryw101 wrote:

    WOW !!! I can't believe I missed this.

    This same author two days ago wrote an article titled

    "3 Reasons To Buy Apple". And now, just two days later he writes the exact opposite?

    How did Motley Fools management ever let this out?

    What a discredit to MF. They need to exercise some damage control very soon.

  • Report this Comment On May 08, 2013, at 1:18 PM, larryw101 wrote:

    Worst example of poor financial journalism that I've read in quite some time. This guy did a complete flip flop in two days without any real basis.

    How embarrassing for Motley Fool to even print.

  • Report this Comment On May 08, 2013, at 1:25 PM, DrKND wrote:

    Pathetic link bait. Pretty foolish even for Motley Fool! But then, unreliable articles are increasingly common across the entire press. Hit whoredom much?

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