Dropping the price of the iPhone by $200 for Christmas- Imagine that. Early adopters are pissed- can you blame them?
If you don’t own AAPL, or don’t own as much as you want, this news is heaven sent as the stock is selling off.
Look at the bigger picture, ask yourself the following question- will AAPL sell more or less iPhones with the new pricing structure? My guess is they will sell more.
You put more iPhones in peoples’ hands, and what does that do?- in my view it pushes MAC sales. Then it pushes multi media digital entertainment sales, and brings it a bit more main stream.
Whether the market believes the iPhone has been more or less successful than hoped for, it is still disruptive technology. No one has produced anything like it.
So, my past entry levels have been $93 and $124- pretty good calls. Let’s look at a good level to jump in now if it keeps selling off:
The stock is now trading at a very favorable entry level. However, if the market keeps focusing on the “R” word (recession), it could sell off a little more.
If you see it at $124, that would be ideal. $132 is still a pretty favorable entry point considering it touched off $145 last week.
SSL now should be around $120.
Comments and questions are welcome.
I own some AAPL. I also own some IDCC, a company that AAPL just paid $20,000,000 cash + future royalties for 2g and 3g iPhone licenses. Why fork over big bucks for a 3g broadband license when the phone is available only in 2g mode? I think an announcement may be in the offing. I can’t believe AAPL is happy with the limited service A T & T is providing. Its customers certainly aren’t and AAPL has indicated it won’t sit idly by. Any thoughts?
(By the way, thanks for TTGL. I bought a bunch at $1 and upward and am still holding most of it.)
Editor: It is inevitable they will expand the service choices for the iPhone. AT&T probably offered up the biggest advertising budget. Probably a good guess that announcement will put a charge into the stock, and I would expect it for the Holiday buying season- so probably October.