If shareholders are to believe the latest chatter coming from uSwitch.com that the only iPhone 7 (coming this fall) "innovation" will consist mostly of a dual lens camera and wireless headphone connections, the shares could be in even bigger trouble than they already are.
Yes, I know shares are getting cheaper and cheaper and the company's cash hoard is growing faster than even the world's biggest buyback (incidentally,
Yes, I am also aware that technical analysts are saying that the stock could begin to bounce back soon from current levels however, from a fundamental perspective there is nothing to indicate that the company is set to resume its growth (in revenues thus valuation) any time soon. In addition, if TA was infallible, all the chartists would be long retired.
The $1 billion investment in Didi Chuxing was a good move by the company but the payoff could be years in coming and to me it reeked of a "me-too" move by Tim Cook given the fact that
That's not to say that the partnership will not yield large rewards for Apple in terms of its plans for the automotive sector (if any) or for greater integration of its mapping technology with Didi and maybe even Lyft (partner with Didi), however that is a payoff that could be years in the making.
Talking about years in the making, I am still wondering what has happened to Apple's plans for a TV set. Here's what Tim Cook had famously (should it be infamously now?) said about an Apple TV back in December 2012, "It's a market that we have intense interest in....".
There is also chatter that Apple will talk up VR (virtual reality) or it's AI (artificial intelligence) capabilities at the upcoming June WWDC (worldwide developers conference). However, given the fact that
Even die-hards cannot deny the fact that lately Apple seems to be in complete follow mode in the last few years and seems to have lost the innovation leadership mantle of the past. The Asian smartphone OEMs seems to be many steps ahead of Apple in almost everything Apple is just now doing. The fact that dual camera smartphones are already out from the likes of Samsung, LG, Xiaomi et. al is just another case in point of Apple's lost leadership.
In addition, the wireless headset is not anything new from Apple but just another attempt to get gullible users to pony even more for gizmos, gadgets and do-dads.
To conclude, unless Apple executives stop selling shares like there is no tomorrow and maybe dig into their own treasure chests to buy a share or two, or the company stops trying to razzle and dazzle its loyal customer base with endless technical or cosmetic tinkering, or the company makes an exciting acquisition or two, the shares will more than likely remain moribund at best.
Apple shares made a fresh 52 week low last week of $89.47 per share, are down 30% in the last one year, down over 40% from its all-time high of $134.54 on April 28, 2015 (intra-day) and also trading close to a two-year low as of its closing price of $90.42 per share on Friday evening.
Maybe, Carl Icahn and David Tepper are onto something by bailing on their Apple shares lock, stock and barrel, no?
You can follow my trades at jaysomaney.com
(Long aapl, googl, fb, fb and googl calls, short aapl weeklies)
