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toby4059
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Currently a MIT undergraduate student, originally from Georgia. My passion is the technology and aviation sectors. I recently founded a tech company with some friends and I'm also a licensed private pilot. Read more about me in my blog.
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The Undergrad
  • My Second Pick Of The Summer: Apple  6 comments
    Jul 1, 2014 12:09 PM | about stocks: AAPL

    For as long as I have been interested in technology I have been a fan of Apple (NASDAQ:AAPL). I still remember getting my first iPod in 2004 and instantly falling in love with the company. At the age of 12 I told my parents they should buy stock in Apple, which was around $120 at the time (about $17 relative to today's post-split price). Not surprisingly they decided to not take financial advice from someone still in middle school, something they may regret today.

    I believe Apple, although already highly valued, is a great bet for the long-term. With the anticipated announcement of the iWatch, Apple is finally starting a new product line to help bring in more revenue and diversify their current product offerings. In addition the iPhone 6 should be announced in the coming weeks (I believe mid-September), which is expected to sport a much larger display, iOS 8, as well as a further hardware redesign over previous models. Currently iPhone makes up nearly half of Apple's revenue so a new, strong-selling iPhone will greatly help the company. With the release of Apple's latest iteration of OS X, Yosemite, iOS and OS X will now play nicely together. This means that things like SMS texts and calls will now be accessible from your computer. As iOS and OS X slowly grow closer together, Apple will likely be able to create a larger market from their computers as users with iPhones seek to purchase a computer that can better compliment their iPhone. (As a side note, I believe it is Apple's vision to one-day merge iOS and OS X into a single piece of software that works well on both mobile devices and computers. This is idea is similar to what Microsoft is trying to do with its Windows 8 operating system).

    Apple is also expected to release new iterations of their iPad line as well as a MacBook Pro refresh this fall to add to their new products for the year. Coming off 2013, a relatively slow year for Apple with the slow-selling iPhone 5C and the iPhone 5S, 2014 and 2015 look to be much better years. The stock is up 17% for the year and I believe it still has room to grow. I bought Apple shortly after the 7:1 split with 15 shares and an average price of $92.38.

    Edit: I previously stated the wrong expected announcement date for the iPhone 6. This has been corrected.

    Disclosure: The author is long AAPL.

    Themes: technology, tech Stocks: AAPL
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  • inside man 55
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    This is a very good pick and your parents should have listened to you. I don't think the iPhone is coming in July, September seems most likely. And the iPhone 5c was a success, it was the 5s was an even bigger success.
    1 Jul 2014, 01:34 PM Reply Like
  • toby4059
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    Comments (5) | Send Message
     
    Author’s reply » I think you're actually right on that release date. I falsely believed they usually announced their new iPhones months ahead of release. It seems like the precedent is to make the announcement weeks, not months, ahead of the actually release.
    2 Jul 2014, 10:16 AM Reply Like
  • inside man 55
    , contributor
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    toby, Apple's supply chain management is so good they can announce and ship within 10 days, and they usually do in many countries at the same time.

     

    The reason they don't announce months ahead of time is tanking their current sales. It's a great strategy and they can pull it off.
    2 Jul 2014, 10:52 AM Reply Like
  • toby4059
    , contributor
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    Author’s reply » I completely agree with that. It's a great strategy, and it should pay off well for Apple.
    2 Jul 2014, 01:11 PM Reply Like
  • Anyoption
    , contributor
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    The new iOS will have a lot of "new" features that Android already offers. It would be nice to see more original innovation there. But the new iPhone should sell nicely regardless.
    2 Jul 2014, 08:03 AM Reply Like
  • toby4059
    , contributor
    Comments (5) | Send Message
     
    Author’s reply » It seems to me that Google and Apple continually copy each other in the race for the best smartphone. I don't necessarily think that this a bad thing as long as they also continue to innovate, as the competition will only benefit the consumer.
    2 Jul 2014, 10:28 AM Reply Like
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