Seeing through Wall Street’s anti-Apple backlash
I’ve tested and used as a primary phone several versions of Android and every version of iPhone over the last five years since what I was probably the first to call the “Smartphone Revolution” and then the “App Revolution”. I’ve spent thousands of dollars on apps and games to help me stay on top of these, the most important tech trends of the 21st century so far. I’ve owned Apple since the advent of iTunes back in March 2003 and I bought Google the day it came public. Most recently I made Facebook my biggest position back when it was in the $20s because of the huge revenue opportunities that they’ve created with their smartphone app, which will generate billions of dollars in sales in coming years.
Like many millions of other people, I use my smartphone (and tablet) hundreds of times a day for dozens of different reasons. I still get asked all the time what is the best app for traders and investors and I’ve recently become addicted to Scutify.com‘s Scutify app. You get real-time tweet feeds, news headlines, videos, blog posts all aggregated into one simple layout and much more. What’s your favorite app for traders and investors? And what’s your all-time favorite app?
All this to say that I have been testing out the latest Apple iOS7 operating system for the iPhone and iPad and I’m one of the fans of the new system. Big time. The new iPhone 5S and 5C are not the biggest Apple story today, despite the huge lines and very strong demand for the new phones around the globe today. And frankly, the huge lines are a bit of a surprise to me given how strong the anti-Apple backlash on Wall Street has been that I warned about back when Apple was near its all-time highs. Of course, there’s a big difference between an anti-Apple backlash on Wall Street vs. how the rest of the world feels.
Which leads me back to the iOS7 and how it finally creates a new differentiation and feel and ease of use vs. the Android system’s current iterations. That is, the new operating system isn’t just elegant — it’s also very user friendly and most every app on your phone look and work better too. There’s nothing like it in the Android universe. Android’s still going to be the biggest market share holder whether Apple’s new iPhones sell like hotcakes or not. But the profits in the industry, especially because Apple didn’t wildly discount the iPhone 5C, will still flow to Apple first and foremost.
More importantly, as I’ve preached all the time, you have to pay attention to the “Platform” when you look at long-term tech trends. The new iOS7 locks users in to all kinds of free additional features within the platform itself, such as iCloud, and the Apple platform is easier to use as anything else out there.
On the other hand, there’s plenty to worry about with Apple here. The chart looks awful. Tim Cook has repeatedly proven himself to be no Steve Jobs. Wearable computing and alternative form factors for the hardware is clearly advantageous to the Android approach of enabling anyone to use the OS rather than the closed Apple system. When will AppleTV finally become viable?
I’m long Apple still, I recently added some new call options in it. I expect that Apple can get up closer to $550 by the end of the year and that $450 remains a pretty strong resistance bottom.
