Doug Kass, President of Seabreeze Partners, has a new post on RealMoneyPro titled The Bear Case For Apple.”The upcoming quarter will be big for Apple,” writes Kass. “The fastest ever rollout for iPhone 5 will be accompanied by higher-than-expected margins, as there are two separate cost-reduced models now. Soon everyone will know that, and if not fully in analyst numbers, it will be in buy-side expectations.”
Having said that Kass offers 10 concerns he has about the stock. We summarize four of them here:
- “Quality vs. price: Apple is now selling less or equal for more money.” Kass argues that competitors have caught up with Apple in terms of technology. As such, they are now only offering a similar or worse product at a premium price. Kass doesn’t think this is sustainable.
- “The Oracle of Cupertino: Steve Jobs is no longer around to convince consumers that his products are magical.” Kass notes that there appear to be internal disagreements, and that Apple lacks a clear voice.
- “Increasing product homogeneity: Apple no longer has a huge ecosystem advantage.” Most desired apps are available on competing operating systems.
- “Economic headwinds: Some of the markets served by Apple are saturated, and in a worldwide economy facing strong headwinds, consumers may balk at a product that can be purchased at much lower prices from competitors.”
Read more at RealMoneyPro.com.
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