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Jeremy Frommer, CEO of Hedge Fund LIVE Jeremy Frommer has 20 years of industry experience and is currently responsible for general management and leadership of the General Partner. Previously, Mr. Frommer was a Managing Director and Head of the Global Prime Services Group (“GPS”) at RBC Capital... More
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  • Don’t bite the AAPL, Eve.  0 comments
    Apr 5, 2011 10:11 AM | about stocks: AAPL

    With all of Apple’s (OTC:APPL) recent attention, regarding the Verizon iPhone debut, Steve Job’s state of health, and the recent release of the iPad 2; you’d be sure that Apple will never become “old news.” However, I think this could change sooner than we think.

    I blame this partially to its timing. Although, Apple is known for being #1 for it’s innovation, it’s timing falls to #10 and is, in my opinion, what needs to be worked on. Take the iPhone for Verizon as an example. After waiting 4 years to release the first iPhone via Verizon, sales failed to create as much buzz as everyone predicted it would.
    Exactly why, I dont know? But I can only guess that those who did not buy it, but who are still interested in an iPhone for Verizon, didn’t run out to stores because they’re still waiting for an iPhone compatible with VZ’s new 4G service. And, what a surprise!….Not! It seems as though Apple has a habit of dropping a sub-par, limited featured “first generation” products, to then be followed up with a full-featured “second generation” product a year later. 
    My question is, why? It’s not as though certain technologies are not readily available during the “first generation” drop.  I can only believe that this is because it gives Apple a reason to keep consumers buying.
    Unfortunately for Apple, a lot of people are smartening up. This includes their competition who are not waiting on
    their 2nd generation products to beef up, but who are releasing their initial products with more features than
    Apple on the first go around.
    Take the iPad and compare it to some of the newest tablets on the market. The Android Xoom, for instance, leaves the iPad in its dust. It has two important features that the iPad does not. With a dual-core processor -making it TWICE as fast as the iPad 1 – and 4G compatibility, the Xoom already surpasses the iPad. Now, do I think this will drastically place a dent in Apple right away? By all means, no. I still believe people will remain faithful to Apple’s brand, no matter what the company puts out. The Brand does stay true to it’s reputation of prestige and wealth. Therefore, there will always be someone willing to drop a pretty penny on an item that will do a better job at boosting their ego, than it does their productivity. However, I believe that more cost-conscious
    people will begin to wake up and require more of Apple than to create “just another pretty paper weight.” And if Apple doesn’t work just as hard at executing products compatible with other advanced technologies, as it does with it’s branding and design, it will slowly loose to its competition.
    In conclusion,  with all of the new competition, I am not as positive that Apple will be as popular exactly a year from now. It is known to set the stage for innovation and cutting edge technology, however, I think it will have a close race with other companies competing for it’s spot. And with the news regarding, CEO Steve Jobs, who knows. 
    Stocks: AAPL
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