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Apple reported some very high fourth quarter earnings yesterday after the market closed, and, uh, Wall St. liked what they heard. I swear I saw it rise 10% in less than an hour. Apple now has a larger market cap than Intel and IBM. What a world.
The iPhone "is a game-changing product," said Stephen Coleman, chief investment officer at Daedalus Capital LLC.But I think it was really Mac sales that drove the stock up. They were incredibly strong. Over 2 million Macs sold - 400,000 more than in any previous quarter. And that's in a quarter immediately preceding a huge OS release (often people put off computer purchases until a new OS is released since you get it free with a new computer.) Apple is now the number three computer retailer in the U.S. (behind Dell and HP who, sure, sell a lot more but on *much* lower margins.)
Based on income from the iPhone alone, he said, "I expect Apple's earnings to continually grow materially at 50 percent a year, for the next three years."
I think they are at the tipping point, especially with their laptop sales. They can easily gobble up market share percentage points from here. 10% of the global market doesn't seem out of reach. And then, yeah, there's that whole iPod thing. Still, I don't trust the market in general right now and I think I'm going to sell my rather tiny holdings. It's been a very fun ride.