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"Apple's (AAPL) iPhone business alone is larger than all of Microsoft's (MSFT) businesses...

"Apple's (AAPL) iPhone business alone is larger than all of Microsoft's (MSFT) businesses combined," writes MG Siegler. Yet Mister Softee - with a $250B market cap - is more a favorite of the value crowd than Apple, which has more than double the sales and a valuation of just $430B. (breakdown by business segment)
Comments (21)
  • Lending credence to the concept that the dividend discount model of valuation may at least one form of truth.
    5 Feb 2012, 02:04 PM Reply Like
  • MSFT still has many who believe that someday it will break out of it's decade long malaise and create something new and meaningful.
    5 Feb 2012, 03:31 PM Reply Like
  • Just give us the price to sales ratio for both...
    5 Feb 2012, 04:30 PM Reply Like
  • Apple 3.96, Intel 2.52, Dell 0.52, HP 0.45, Qualcomm 6.90


    Microsoft 3.63, Adobe 3.73, Oracle 4.11, Autodesk 4.40


    HTC 1.73, Motorola 0.89, RIM 0.44, Nokia 0.38


    Google 5.12, Yahoo, 3.96, EBay 3.64, Amazon 1.78


    Baidu 37.39, Tencent 14.15, Sina 12.27, Netease 7.92, Sohu 3.92,


    Youku 44.92, Tudo 10.15,
    5 Feb 2012, 09:58 PM Reply Like
  • Apple has an Achilles Heel.


    One day people around the world may not see the iPhone or iPad as "cool and fresh".


    Once that day comes some company, I don't know which, will begin to take the mantle.


    Don't believe me?


    Ask RIMM, PALM or Motorola if "cool and fresh" are permanent.


    Think about how cool the original Macintosh was back in the 1980s (remember the legendary commercial?).


    Then Steve Jobs left the company. The influence of his genius began to fade and soon we had Mac clones.


    Tim Cook BETTER be JUST AS GOOD as Steve Jobs or we could be seeing the beginning of a very slow fade for what now seems like an impenetrable empire.
    5 Feb 2012, 06:14 PM Reply Like
  • It is a retailer after all.
    5 Feb 2012, 06:26 PM Reply Like
  • The problem with AAPL during hte 90s is that Steve Jobs never had complete control over the company like he did during the 2000s. He said himself, he surrounded himself with like minded individuals and he's been known to take other people's ideas for his own. Your comment is pretty much the same for every company in the world. "Oh no, what would happen if people stop buying our product?" AKA what if a company stops innovating. This isn't unique to Apple and it kind of is a head in the sand type of analysis.
    5 Feb 2012, 06:55 PM Reply Like
  • I feel the more appropriate comment here is what the heck is MSFT doing differently to make itself more relevant.
    5 Feb 2012, 07:17 PM Reply Like
  • Good for you, you have now justified to yourself your decision to not purchase the greatest growth story in the history of the world. Feel better now?
    5 Feb 2012, 11:22 PM Reply Like
  • And you, you're just funny. Just another retailer like K-mart, JCP and Sears? You can feel better now too since we've decided that.
    Just remember though that this retailer earns the most money per square foot of any retailer in the world.
    Oh yes, they're just scratching the surface of China and India.


    Long AAPL and sleeping very well.
    5 Feb 2012, 11:27 PM Reply Like
  • calm yourself there apple long. I'm just stating the obvious. It wasn't a popular retailer 12 years ago now was it. Not short either btw.
    6 Feb 2012, 01:04 AM Reply Like
  • But you should remember that Apple is not just a retailer but also a retailer. Other retailers don't make the things they sell and that's where the margins are. So if you want to call Apple just one asset class, call it a tech manufacturer. It it would give the company far more justice than retailer.
    6 Feb 2012, 02:58 PM Reply Like
  • so its not just a retailer but also a retailer? Now thats something to remember.
    6 Feb 2012, 03:00 PM Reply Like
  • correction: manufacturer
    Now you can comment or consider the discussion a victory based upon a typo and move on. In that case I assume you've never made one.
    Nice talking to you.
    6 Feb 2012, 11:18 PM Reply Like
  • I keep on telling myself I'm going to quit doing this. Commenting here in regard to the constant Apple bears that is.. In fact, it's like smoking, it's easy to quit, I've done it hundred times. The problem is that they never stop with their lame arguments. It's just too frustrating to read all these stupid reasons for staying out of AAPL. Afterall, one of these mindless (and unfactual) diatribes may convince some poor slob not to invest in or to sell this magnificent company. I wish everyone here the success I have found on being long Apple. IMO it is not over folks, just hop on the train or get out of the way. In my mind, the Apple bears are just trying to spread their own misery.
    5 Feb 2012, 11:39 PM Reply Like
  • Who knows how far Apple can go but the great time to buy was when they were not popular and not all the rage. Now everyone is ga ga over Apple.
    5 Feb 2012, 11:55 PM Reply Like
  • I thought the same thing back in 2003. Wished I bought AAPL when the iPod was launched. Boy, I missed the train on that one. Then I decided to jump in, trading AAPL in 2006 and then investing in AAPL after the iPhone launch in 2007.


    I sell AAPL on the run ups, buy on the dips. I always hold a position. Cheapest shares I hold cost me $200/share. The most expensive I hold now I bought at $372/share.


    It's never too late.
    6 Feb 2012, 02:29 PM Reply Like
  • entmd


    It is absolutely too late at some point and especially on a risk adjusted basis. The question is when?
    6 Feb 2012, 04:08 PM Reply Like
  • Many investor's can't by charter or won't by choice purchase a common stock which does not pay dividends. Growth investors are buying next years earnings and hope (the latter not usually a great strategy in the kinds of markets we have seen lately). Traders are buying next quarters earnings. Many believe that Apple's shear size mitigates against continued monster growth and are not being paid to wait out the uncertainty while buyers of MSFT and INTC are- while they hope for continued growth or a great new product to push valuation. That said I am long and intend to remain long AAPL but even a 2% would make it easier.
    6 Feb 2012, 04:03 PM Reply Like
  • Nothing against Apple, but when you have a unique product that's well designed you can charge whatever the market will bear. When the market floods with similar lower priced products, the decision as to whether to give up market share to maintain margins or to discount will have to be made. Obviously you have to discount anything that has a generic equivalent. If apple wants to be Gucci they can, but profits will plummet. AAPL has too many rivals with big war chests to sustain the kind of per unit profitability they now enjoy.
    6 Feb 2012, 10:15 PM Reply Like
  • Apple is more of a media company or a media distribution company than a tech company.
    6 Feb 2012, 10:19 PM Reply Like
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