As my colleague Georges Yared is fond of saying, Apple, Inc. (NASDAQ: AAPL) continues to ride the train to riches every year, as it rolls out new iPod products while increasing its share of the PC market slowly but surely. As I write this, Apple shares stand at a new all-time high of $153.18. Is it time to get into these shares, or has the time passed? Those who bought in at $80 a share are probably grinning right now, as an almost 100% return may be on the horizon soon.
But, like Georges, I believe Apple shares are headed even higher. The popular iPod line has been around for over five years now, and the new generation is better than ever. The snazzy new iPods create buzz around Apple's music products and other products like the Mac computer line, and the company's word-of-mouth and visual marketing continues to shine with the mass consumer.
Apple goes beyond the "features for the money" approach of other digital music players. Buying an Apple product is now a cultural statement and provides a feeling of being in the "in crowd." Over and over again, there are arguably better products that try to compete with the iPod, but none have succeeded thus far because they cannot match that special feeling.
Additionally, iTunes has been a great success -- more music and movies are available at the iTunes store for download than at any other digital download source. It's hard to tell how long Apple can keep up the excitement over its various products (especially digital audio products), but for now, the company's shares are indicative of the grip it has on the music download and product market. And, they're going up more. Are you hopping on the $200 share price train? That's your call.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Reader Comments (Page 1 of 1)
9-26-2007 @ 3:06PM
B. said...
I can remember back when Apple was $8/share. I almost borrowed the money to buy 100 shares. With all the talk of Apple going under I chickened out. Later, I decided to go with them (months before the first video ipod came out). I got in in the 40s. Of course, really glad I did. The question is when to get out. Greed is a killer and I don't want to be guilty of that. On the other hand, with Apple's strong fundamentals and the future of the new ipods/iphone, it really seems like it has to go higher.
9-26-2007 @ 3:56PM
BILL said...
So close to October 17 Apple reporting, very difficult not to wait it out. I am waiting.
I try not to let the little blips get to me. Let them shake the apple tree, but leave most of them on the tree for those who are patient.
BillW