| Paul said: I sold all my apple stock the other day. Did quite well on it. A company that size can't continue achieving such large growth rates. |
That's what people keep saying, but Apple keeps on growing earnings an average of 67% every year since 2007. To understand how this is possible, just look at the marketshare numbers:
Mac: ~5% of the PC market
iPhone: ~4% of the cell phone market
iPad: 70+% of a rapidly growing, nascent market
iPod: 70+% of a rapidly collapsing market
Only one key Apple product is constrained for growth, and it's acting as a gateway for Apple's most lucrative product. Even if you assume that Apple can only seize 20% of a market like cell phones without somehow devaluing their brand by shipping cheap products, that still leaves space to grow iPhone revenues by a factor of five. An Apple that takes 20% of the cell phone market without sacrificing margins would be worth $1.2 trillion for its iPhone division alone.
If the iPod completely collapses while that's happening, you can knock $24 billion off Apple's value.
"The worst part about these reviews is they are [subjective]--and their scores often depend on how drunk you got the media at a Street Fighter event." — Mona Hamilton, Capcom Senior VP of Marketing
*Image indefinitely borrowed from BrainBoxLtd without his consent.
