The Pew Research Center's Project for Excellence in Journalism conducted a yearlong study and found that 15.1 % of tech articles were primarily about Apple
So Apple is the Lindsay Lohan of the tech world, garnering an excessive amount of coverage. Why? Fool analyst Rex Moore says there are a couple of reasons:
- People are getting what they want. Former Apple CEO Gil Amelio said in his book, On the Firing Line: My 500 Days at Apple, that a New York Times staffer once told him they sell 3% more papers when they run a strong story on Apple. The Motley Fool gets more readers with strong Apple stories also.
- It's hard not to cover a continually innovating company. Apple has done thing like turn the telecom industry on its ears, and launches or updates revolutionary products on a regular basis. iPad, iPhone 4, antennagate ... it seems there's always something going on.
What does this mean for investors? It helps quantify in some way Apple's great intangible brand benefit. It's a high-risk, high reward situation: The stock price will continue to do well if the company keeps exceeding the high expectations set for it, but it could take a big hit if the business hits a couple of speed bumps.
Watch the video here:
For more analysis, visit FoolTV.com.