Ask a Fool: Is Apple Worth Holding Onto?

Once revered as the epitome of innovation, the market seems now to believe Apple's  (NASDAQ: AAPL  )  best days could be behind it. Given the stock is still hovering close to the $400 range it has clung to over the last few months, investors are more than justified in their growing frustration. However, the company has signaled it believes it still has an ace or two up its sleeve. So are shares of Apple still worth holding onto? In this edition of our Ask a Fool series, Fool contributor Andrew Tonner gives his views on where Apple should be headed over the long term and why this company's historic run might not be over just yet.

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Comments from our Foolish Readers

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  • Report this Comment On July 11, 2013, at 11:48 PM, SimchaStein wrote:

    "Hold on to" ?? If you own it, why sell? What's the rush? Dividend is OK. Buy backs provide downside protection like you've never seen anywhere anytime.

    And even at no growth, they're a bargain.

    Just for perspective, in the ultra lite (MacBook Air) category they have better than 50% share - yup.

    Just read a review of Sony's Windows8 competitive offer - $150 higher price; same specs, 1/2 the battery life, 1/2 lb lighter, and brighter screen.

    So ask yourself, after 20 plus years of laptops, why are they killing the competition. Only a fool would give up on them.

  • Report this Comment On July 12, 2013, at 12:56 AM, marv08 wrote:

    "...investors are more than justified in their growing frustration."

    Justified? Really? Apple stated, clear as mud, that there won't be any new products before fall. So, what frustration is justified here?

    Unless we hit another general crisis, AAPL will finish the year north of $500. New iPhones and iPads alone will achieve that.

    Just as a little reminder: When Jobs died, AAPL was worth $378.25 a share. It closed at $427.29 today. Despite thousands of doomsday articles by Fools and other pseudo-journalists, AAPL is up under Tim Cook, not down. Truth hurts.

  • Report this Comment On July 12, 2013, at 4:20 AM, H3D wrote:

    Apple produces about 3 or 4 major innovations a decade.

    Think

    - IPod + iTunes

    - IPhone

    - IPad

    - MacBook Air

    Each changed the way the customer, and the competition, operate.

    And Apple's competition?

    Google score 1

    - Street View

    Microsoft score none in the last decade.

    And Samsung score none ever.

    Anything wrong with Apple? No.

    But the press has severe attention deficit disorder.

  • Report this Comment On July 12, 2013, at 10:04 AM, spakklal wrote:

    I feel you should look at the leader in total sales & total profits in the smartphone industry. Even though the percentage of total smartphones sold are low, Apple still enjoy 70% of all smartphone profits. You can have growth in third world countries in the number of smartphones, but profit generated is very low.

    Samsung is in the mobile business for the last 20 years and they sell 100 different electrical & Electonics Products in 200 Countries.

    Apple with just 2 or 3 products has a annual revenue of more than $165 billion in just 5 years selling in fewer Countries then samsung. Apple if it starts selling smartphones in all the Carriers like samsung, the total sales of Apple would have doubled.

    Apple is mostly interested in maximizing profits in the smartphone sector instead of taking share in the low end market where samsung has specialized in the last 20 years in the mobile industry.

    When Apple will come with new products like Apple TV, they will take a huge share of profits from the Smart TV Sector as well.

    You should read the following article to learn more about Apple and their competition.

    http://appleinsider.com/articles/13/03/23/googles-android-po...

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