#AAPL aka #Apple Future Products Won’t Fall Far From The Profit Tree

(Last Updated On: October 8, 2012)

It doesn’t take an idiot to divine that an investment in Apple (AAPL) could see a definite bounce throughout the Fall. They’re releasing what’s potentially their biggest revenue maker in their product suite.

I am of course talking about the iPhone 5. This product representover half their revenue and there’s a huge upswing in demand from Asian markets like China.

Many traders have lined up their buys come September 11. That’s sheep herd mentality and therefore I would prefer to avoid such a move. Instead, buy in now as the market tumbles. You can’t regret buying into the dips as the pops can be quite extreme.

(click to enlarge)

Reference source chart is here.

After careful analysis of the chart above, it appears that there is a continuing steep upward trend in the stock price as it is achieving its highest level yet. There should be enough demand of the new iPhone to propel this trend despite the stock appearing to be overbought as according to being the upper trading range of the Bollinger Bands. Over the most recent activity in the RSI, the buying may be dropping to show a potential buying opportunity in the near term. As long as demand remains high for their products in emerging markets like Asia, it could be a safe expectation to continue to see an upward trend on the stock price of Apple.

Apple knows they need to bring out some future hit products in the post-Jobs era. This includes an iPad Mini for those on a budget — that will help them stay competitive against those cheap Asian Android tablets. Also, Apple will take on traditional cable TV carriers with the new Apple TV product.

And so the company that Jobs built continues to innovate and diversify to stay ahead of their competitors. This means I consider Apple a decent stock to watch over the short term — and buy on dips — until Christmas season and beyond.

Remember, I am only suggesting to buy on the dips which is currently happening. I would be on the look out for long term disappointment asReuters suggested this will happen. Despite, their recent attempts with Apple TV, it may be a long term disappointment as the product may not have the same success as iPhone or iPad over the long term.

What will keep Apple going? Their ability to profit off their ecosystem of the iTunes app store with various digital downloads including videos, books, music,etc?

But the question from the above Reuters article remains:

But 13 other brokerages maintained their price targets and Thomson Reuters’ StarMine data showed that 22 analysts still rate the stock a “strong buy,” while 26 rate it “buy,”.

Why do these brokerages still rate Apple a long term strong buy? Maybe, the release of the iPad in China. A more affordable iPad Mini for the rest of the huge consumer emerging market world? An affordable iPhone?

You see my point I am sure that the big brokerages are not seeing.

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