Kids can't get enough of Apple's iPads and iPhones
By Dian Vujovich
The world is talking –and worrying– about Apple. Maybe they ought to be. Maybe not. One thing is for sure, no matter what happens with the stock’s price, the outrageous popularity of all things Apple isn’t likely to change anytime soon.
I happen to be a fan of Apple computers. Got my first one in the early 1980’s and still have it. Dreaming, of course, that one day it might be worth zillions of times more than the $2400 I spent on my Apple Macintosh way back when. And that payday, no doubt, will allow me to retire. No snickering, please. (If anyone can figure out how much that 2400 bucks would translate to in 2012 dollars, let me know.)
Dollars aside, I still only own and use Apple computers. Don’t have any of their other stuff, though. One reason: Price. Part of that price thing is that one day I figure the emperor with no clothes on is going to be owners of Apple stuff. Yes, their computers were so simple to learn to use in the early days they couldn’t be topped. Today, that’s pretty true too, although all the free stuff that used to come on those early machines is long gone.
And yes, Apple’s product design is spectacular, their advertising beyond belief, innovations delightfully, etc. etc. But I can’t help but think that once people realize the premium they are and have been paying for Apple products— given how much they cost to make and made in China no less– the joke is going to be on a lot of our faces.
Nonetheless, the company is considered the most valuable in the world by talking heads. As for the stock, AAPL reached its all time high of $705.07 a share last month on September 21st. Yesterday (10/9/12) it closed at $635.85. That’s below its 50-day moving average of $658. Given the price, the big question is: Is AAPL a buy at this level, a wait-and-see, or a sell and take your profits stock?
Although there are reasons for doing each, investing is very personal business and no one knows your business as well as you. Profit taking, however, is the reason we all invest.
That said, all things Apple are hugely popular over-the-top products. Especially for young people. Although, whenever I’ve been in the Apple store at The Gardens Mall, they are as many young-olds (60+agers) shopping, as there are young people.
In September, Piper Jaffray surveyed 7,700 teens and asked them a bunch of questions about some of Apple’s product line. Here’s a sampling of the results:
-Of those who own tablets, 72 percent own iPads.
-62 percent plan to buy an iPhone in the next six months.
-43 percent said they’d be more likely to buy an iPad if Apple released a smaller version of the device at $299.
-44 percent own a tablet.
-40 percent own iPhones.
My question? Where does everyone get the money to buy all of this stuff? I mean buying a product is one thing but the cost of using the product is something else. So I can’t help but wonder where everybody is getting the money to buy and own Apple iPhones and tablets? Are they only for the rich, the wannabee’s or the gotta-have trend followers? Whatever the answer, as long as Appple’s stuff is hot, it fixes any product messes, management stays ahead of the curve and the market doesn’t dive— its stock price just might be to be too.
To read more articles, please visit the column archive.