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Hardware - Monday, June 9, 2008

Only a fool would bet on the Cubs, or sell Apple…

Apple's (NASDAQ:AAPL) WWDC conference trumpeted the new iPhone with it's new 3G and GPS capabilities that bring the phone to the level of Samsung's underwhelming Blackjack and the many similar phones that have been on the market for a while. Is it any wonder Wall St. responded the way it did? Won't a cheaper iPhone mean less profits for shareholders? Should you join the sell-off?

As you can assume from the title, we at tech:stocker still believe Apple is an important part of a tech portfolio. Adding 3G will attract more of the heavy tech crowd who don't want to spend the extra few seconds downloading this site and others on an analog network.

And the cheaper price tags ($199 and $299) will attract a large wave of buyers who were reluctant to plunk down $400 or more on a cell phone. We don't see a better cell phone on the market for under $200 and would be hard pressed to find something better for under $400. Apple should easily realize its goal of 10 million phones sold in 2008. Watch what the stock does when it surpasses that goal in the 4th quarter.

The "halo effect" of the cheaper iPhones will obviously lead to more iTunes customers but the new phones will also help boost sales of Apple's iBook, iMac, and even the Mac Pro. While Apple's percentage of profit for each phone might drop with the lower price, the increased sales of the phone and the related profits will ultimately boost corporate profits making all of the shareholders extremely happy.

tech:stocker is excited about the today's extremely small sell-off as tomorrow will be a great time to buy and get an immediate boost in the share price. Put your order in first thing tomorrow and watch the quick bump in price as investors realize their mistake and then enjoy the ride for the rest of the year. Unload your Dell (NASDAQ:DELL) stock if you must as making a profit shouldn't be this easy.