Caltorguy

Reading Apple: iPhone Sales Slightly Off, MacBook OK

AAPL is a play on the broader economy. Sure a lot of people want an iPhone but will they sign an (expensive) multi-year talk and data plan right now that the iPhone requires when they aren't sure about their job / home etc? Apple's has positioned itself a premium product in the categories it operates in and is able to command prices acccordingly but this could work against it if this recession is long and severe - I mean how many people NEED a high-end smart phone or brand new $1500 laptop? "Need" trumps "want" pretty quickly if you don't know where your next paycheque is coming from, or whether you'll have you house in 3 months (or a FICO score above 400...). This is why the whole consumer tech mkt is dead right now and may continue to be for a long time - and if AAPL goes to $50, even doubling it will only take it back to half what it was 6 months ago. Maybe, if they really have all this cash, they should pay a dividend....