AAPL Gets "The Bends"

Discussion in 'Stock Market Forum' started by Brad321, Sep 25, 2014.

  1. Brad321

    Brad321 Active Member

    Sep 2014
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    The biggest worry for any "fad stock" is you will lose your cool-factor and start becoming the butt of jokes. Apple's worst nightmare is happening with all the bent phone tests popping up on the internet. My personal belief is AAPL produces okay, but not great products and the only reason they can garner such high margins is due to the fact carriers subsidize their phones and they don't have to compete on price.

    Samsung was quick to jump on the bent iphone bandwagon with some hilarious ads. This one is great from Samsung:


    The bending phones wouldn't be such a big issue except it is coming on the heels of problems with the iOS 8 operating system. While some are touting Apple's new curved screen technology as a positive... the number of fanboys is decreasing and you need to watch out when you lose your cache. Watch for a Saturday Night Live sketch to confirm the next big thing is to bash AAPL.

    Stock down 3.5% in early trading. They have been using share buybacks to stop the fall after earnings announcements. Watch for more buying from the company to try to keep this at $100. Can they do it or are we back to double-digits for quite some time?
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

    Feb 2014
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    They've actually been doing pretty well in earnings - over $7.7 bil last quarter, up nearly $900 mil from Q2 '13. I'm not a big fan of share buybacks, but that's not always just done to increase EPS. It's one of Icahn's little quirks, along with the split and the dividend. I'd personally rather see them make more aquisitions with some of their cash.

    There's a vid going around that has been exposed as fake of a guy bending a phone with his hands - the times don't match up on the phone(s). But any phone will break if you drop it, throw it against the wall, hit it with a hammer, etc.

    These little glitches have been going on ever since I've been following and owning the stock, going back 7+ years to the first I-phone. The fact that they keep kicking out these things and selling 10-12 million of them right away is what's important. And also the fact that they're not just about cell phones.

    I'm gonna hold my shares for now. If they should drop down to $80 like one guy I saw on tv today thinks they will, I just might up my stake from 2100 shares to maybe 2800 or 3500 again if the fundamentals stay strong.
  3. troutski

    troutski Guest

    Jul 2014
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    Apple's taking all the flak for this issue, even though it occurs in a minimal amount of phones. You can take most aluminum cased phones and bend them in the exact same manner. This applies to the HTC One M7 and M8 and tons of other devices. You can even do it with polycarbonate devices, too. In fact, Consumer Reports released some testing on the bending issue and showed that the phones are far more durable than the videos would have you believe. It's not a good issue, but it's not a prevalent one either, aside from the media focus.

    All smartphones will bend, and some of them bend from far less pressure than the iPhone 6 Plus. As for AAPL stock, I'm still in on them. It's not going to drop too drastically, and there's plenty of indicators that the stock can climb higher after dealing with this hurdle.

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