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  • Apple Stock Undervalued & Potential Growth from a $900 MacBook


    Today shares of Apple stock are on the rise as the Berstein Research Group elevated the Mac marker and made promising comments about Apple’s future as the company has long been rumored to release a lower priced MacBook. It has been predicted that if Apple were to release a $900 MacBook they would see a 50% increase in the broadness of their customer base.

    Tony Sacconaghi, one of the Berstein analysts, calls Apple stock undervalued even in this economic crisis of sorts. Sacconaghi says "We believe that the stock is overly discounted, that Apple's short-term financials are likely to remain relatively healthy despite economic weakness, and that the company's longer term growth story remains intact."

    One reason for the high expectations of Apple stock is the slow down in the PC market. If the PC market continues to remain flat in 2009, and Apple’s share only sees a 25% growth rate (low for the rate Apple’s share has been going), Apple would still see a 13% increase in Mac growth.

    An even greater factor contributing to the high expectations of Apple Stock are the long standing and credible rumors that Apple is going to lower the price of its notebooks. As Sacconaghi puts it, “Perhaps most importantly, we expect Apple to lower price points to address a much broader market at some point over the next year."

    A recent internal analysis indicates that if Apple were to release a $900 MacBook they would expand Apple’s addressable notebook market by 50% in terms of revenue and in units by as much as 67%.

    This of course would pressure gross margins, but this has already been considered by the Berstein analysts. As Sacconaghi adds, "Given its extensive use of contract manufacturing, Apple's COGS (Cost of Goods Sold) are nearly entirely variable, and operating expenses relative to gross margins are low; the upshot is that Apple's earnings per share suffers less to a given revenue reduction than many of its peers."

    Another factor that analysts look to in evaluating Apple stock is the potential of the iPhone. With iPod sales dwindling Apple has a “unique opportunity,” to convert loyal iPod fans all into iPhone users.

    Source: AppleInsider
    This article was originally published in forum thread: Apple Stock Undervalued & Potential Growth from a $900 MacBook started by AppleChic View original post
    Comments 11 Comments
    1. serge619's Avatar
      serge619 -
      BAH!!!! they sooooo need to go below 900....
    1. RichyG's Avatar
      RichyG -
      Today is seriously one of the best days to invest in the stock market.
      Especially Apple.
    1. jibaro3's Avatar
      jibaro3 -
      Mac need to great better price computer a year ago i purchase a mac for $1,100.00
      Two weeks ago i purchase a Sony vaio for $500.00. let me tell you the different.
      Mac 80 GB hard rive
      PC 300 GB Hard rive
      Mac 1 GB Memory
      PC 4 GB Memory
      Mac CD Drive Only I can't get the DVD Combo needed $300.00 extra
      PC DVD/blue Ray
      Mac 14in screen
      PC 17in Screen
      Mac dual core processor 1.2 MHZ
      PC dual Core Processor 3.2 MHZ
      So if you can see PC are making a dream computer for a lot of people when Mac is going for fans only they need to open a window for there computer and make a killing
    1. JacquesChirac's Avatar
      JacquesChirac -
      don't believe anything these stock analyzers say. apple was no crusader in having its stock rise today

      The fact of the matter is that apple's stock has almost cut in half these past few months, and unless it can start bringing out macbooks around $400-$600 like those dell deals where they have laptops for $399 with a free printer, apple is gonna keep taking hits in this weak market place. Really cheap laptops are the most commonly sold ones, even if they are a piece of crap.
    1. thetoothfairy's Avatar
      thetoothfairy -
      Quote Originally Posted by JacquesChirac View Post
      don't believe anything these stock analyzers say. apple was no crusader in having its stock rise today

      The fact of the matter is that apple's stock has almost cut in half these past few months, and unless it can start bringing out macbooks around $400-$600 like those dell deals where they have laptops for $399 with a free printer, apple is gonna keep taking hits in this weak market place. Really cheap laptops are the most commonly sold ones, even if they are a piece of crap.
      I think Apple needs to be more competitive in this weak market place... I can't agree with you more....

      As for a Dell laptop compared to a Apple laptop..... I would rather pay a bit more to have the Apple than the Dell or any other kind.... but you are right again... people will buy cheap pieces of crap so save money or if they don't know better or can't afford anymore....

      I would not buy a piece of crap laptop because ..... All laptops have Vista.... and my other reason is there is nothing better than a Apple laptop and products in my eyes....can't help myself when I converted I fell in love with the Apple products.... Vista may be for some but I did not care for the performance of it...

      I have built pc's for 20 years and I do not miss them at all.... the only part I do miss by owning an Apple computer is building it myself because if something goes wrong with my Apples.... I have to take them in for repair and I do not like that at all....

      If I had a problem with my pc I could get a part over nighted and be up and running again in one day or run down the road and get the part I needed.....

      I feel Apple is going to have to get their prices down if they want to stay alive through all of this competition....

      And now with the Blackberry Storm coming out and also Android.... I would not be to afraid of the Blackberry because it has no Wifi, don't ask me what they were thinking about with this phone.... that was pure stupid that they did not include wifi

      Android... that may be something Apple may need to watch..... if Apple is smart... I would suggest they give us copy-paste and everything they could at this point.... until they come out with a more powerful phone....

      I am getting all kinds of info on all of these products... it will be something to see what happens once they all come out... I am going to set back and watch it all....
    1. aymank1985's Avatar
      aymank1985 -
      Quote Originally Posted by JacquesChirac View Post
      don't believe anything these stock analyzers say. apple was no crusader in having its stock rise today

      The fact of the matter is that apple's stock has almost cut in half these past few months, and unless it can start bringing out macbooks around $400-$600 like those dell deals where they have laptops for $399 with a free printer, apple is gonna keep taking hits in this weak market place. Really cheap laptops are the most commonly sold ones, even if they are a piece of crap.
      Wow , this is almost how most of the people think , buy a cheap pc , and replace it after two years .The reason why apple products are more expansive, is because this provide a quality products , compare hp or sony to apple laptop , i am sure you can notice the huge different in quality between the two laptops. If apple reduce their prices , it means they will reduce their quality to reduce the cost , which i think its not something smart . I am sure their prices will go down later because of the market and the cheaper parts they can get now compared to before.
      I think Apple should keep the same quality they provide to their customers .
      In the market theres always the good quality and the bad quality , thats why theres Mercedes and Kia or GMC , I work at BestBuy , and i always tell my customers that apple is like Mercedes ,more expensive but better quality ,more reliable and last longer.
      Yes you can pay less for sony laptop with better specifications , but man good luck with the operating system Vista , you will hate to use the laptop again , but when you use apple , you will see how easy its to use the OS .You dont need to install Antivirus or spywares or all these **** that eat your memory .
      The guys who bough the sony laptop , please use the two laptops for 2 month and compare the sony to the apple you have with 1GB ram , please tell me which one is faster to use and more reliable , i am sure it will be the apple .
      I used to use pc b4 and i used to formate my pc every almost 2 month to keep the pc as fast as before , Now i own apple laptop for a year , i never thought to formate my laptop , still working like new never crash and soo smooth .
      I think 900 apple laptop is a very good idea , but going below that i think will make some problems for apple in the long run.
    1. sziklassy's Avatar
      sziklassy -
      Quote Originally Posted by jibaro3 View Post
      Mac need to great better price computer a year ago i purchase a mac for $1,100.00
      Two weeks ago i purchase a Sony vaio for $500.00. let me tell you the different.
      Mac 80 GB hard rive
      PC 300 GB Hard rive
      Mac 1 GB Memory
      PC 4 GB Memory
      Mac CD Drive Only I can't get the DVD Combo needed $300.00 extra
      PC DVD/blue Ray
      Mac 14in screen
      PC 17in Screen
      Mac dual core processor 1.2 MHZ
      PC dual Core Processor 3.2 MHZ
      So if you can see PC are making a dream computer for a lot of people when Mac is going for fans only they need to open a window for there computer and make a killing
      That's some deal for that PC laptop... link me, I want to buy 3

      Quote Originally Posted by aymank1985 View Post
      Wow , this is almost how most of the people think , buy a cheap pc , and replace it after two years .The reason why apple products are more expansive, is because this provide a quality products , compare hp or sony to apple laptop , i am sure you can notice the huge different in quality between the two laptops. If apple reduce their prices , it means they will reduce their quality to reduce the cost , which i think its not something smart . I am sure their prices will go down later because of the market and the cheaper parts they can get now compared to before.
      I think Apple should keep the same quality they provide to their customers .
      In the market theres always the good quality and the bad quality , thats why theres Mercedes and Kia or GMC , I work at BestBuy , and i always tell my customers that apple is like Mercedes ,more expensive but better quality ,more reliable and last longer.
      Yes you can pay less for sony laptop with better specifications , but man good luck with the operating system Vista , you will hate to use the laptop again , but when you use apple , you will see how easy its to use the OS .You dont need to install Antivirus or spywares or all these **** that eat your memory .
      The guys who bough the sony laptop , please use the two laptops for 2 month and compare the sony to the apple you have with 1GB ram , please tell me which one is faster to use and more reliable , i am sure it will be the apple .
      I used to use pc b4 and i used to formate my pc every almost 2 month to keep the pc as fast as before , Now i own apple laptop for a year , i never thought to formate my laptop , still working like new never crash and soo smooth .
      I think 900 apple laptop is a very good idea , but going below that i think will make some problems for apple in the long run.
      This was the most poorly contsructed paragraph I have seen on MMI.... I stopped reading halfway through because it was just too much work.
    1. reeko's Avatar
      reeko -
      Quote Originally Posted by sziklassy View Post
      That's some deal for that PC laptop... link me, I want to buy 3



      This was the most poorly contsructed paragraph I have seen on MMI.... I stopped reading halfway through because it was just too much work.
      i just took one glance and moved onto the next post
    1. jibaro3's Avatar
      jibaro3 -
      Best Buy have that deal

      don't be wrong I love my mac and yes is one of the best laptop i have but i can do so much with my mac that I always need a PC to finish my stuff. Who care about quality if you now how to take care your pc or mac the longer is a good price customer will buy. Look at dell they sucks and my company has all dell install why? price.
    1. GLOD!'s Avatar
      GLOD! -
      With apple's new bottom of the line 1300$ macbook, it is clear apple is snubbing shareholder and researcher opinions yet again.

      But i still love them
    1. JacquesChirac's Avatar
      JacquesChirac -
      thetoothfairy, I agree with you 100%, especially with the fact that laptops and low end prices cannot handle Vista and are right now a waste of money. personally, i believe vista is the worst operating system i've ever seen because of the juice it uses up from being so poorly written. i would buy a used XP laptop instead for around $400, I'd get wayyy more for my money

      aymank1985, the marketplace doesn't go for expensive computers primarily because of their immense depreciation. yes, they may be a piece of crap, but they are most practical for people who cant afford an expensive computer

      i have a five year old dell I bought for 600 and it still works fine. i mean, yea it's kinda slow and i can't run a super graphical game on it, but it's pragmatic. If I were to sell it, it would be worth $200 at most.

      I also have a computer that was top of the line six years ago with freakin freon coolers and watever with crazy graphics cards and whatnot that cost about $8,000 in total. now, it works incredibly with old software and windows XP, but it wouldnt be worth more than $1400 at the very most.

      think about it, the expensive must-get $300 with contract cell phones of just two years ago are now free with contracts. that's how technology works

      Quote Originally Posted by aymank1985 View Post
      Wow , this is almost how most of the people think , buy a cheap pc , and replace it after two years .The reason why apple products are more expansive, is because this provide a quality products , compare hp or sony to apple laptop , i am sure you can notice the huge different in quality between the two laptops. If apple reduce their prices , it means they will reduce their quality to reduce the cost , which i think its not something smart . I am sure their prices will go down later because of the market and the cheaper parts they can get now compared to before.
      above is the quote