squawk

Why Apple Stock Is Poised To Go Flat - At Best

John,

Overall, your arguments are at best weak. Impression I got as I read what you had to say, was that you recently liquidated your holdings in AAPL, & hence felt a need to express your rationalization for doing so. Do you feel a bit better now?

The argument I find most hollow is the one about decreasing margins. Margins are not decreasing because of increasing costs, nor an inability to maintain existing price points. Rather, the decrease in margins is core to an intentional strategy to expand AAPL's market share, where in the past, many consumers have shied away from AAPL computer products because their relatively high price compared to competing Windows-based PC products.

I've never owned an AAPL iMac, but have continually purchased PC after PC . . . because of the business-accepted Windows-based OS. That is changing. I first considered an iMac when I deciding upon my last purchase. I went for a PC again . . . because I felt the iMac was too high priced . . . about 3X the cost of my Dell PC. Today, with AAPL's increasingly influence among consumers . . . & small business customers, the iMac et al become increasingly attractive. Lowering the price point of these products will only lead to increasing demand for AAPL products. The executives at AAPL clearly know this. Apparently, you do not.