Apple at 2.41 trillion USD current market capitalization is grossly overvalued. Apple Inc.'s intrinsic worth, as far as I am concerned, is 1.7 trillion USD.
To substantiate its current market capitalization Apple has to come up with a new blockbuster product. A self-driving electric car may bring Apple's value to even above 3 trillion USD.
The current core strategy of Apple Inc. of growing via its services offering is nice, but it still hinges much on iPhones locking in the consumer.
I find it very surprising that another company is not able to develop the smartphone market, that is to come up with a blockbuster smartphone model of its own. Even now as Apple's edge has diminished through the years, partly because competitors are copying its technological know-how.
Apple's brand equity should not be underestimated as well. Apple has a hugely loyal user following which ensures the steadiness of its revenue.
Apple simply needs to move forward and develop a new hugely successful product based on information technology. Easier said than done, now that Stephen Jobs is deceased.
Apple should either take a long, deep look into its own marketing and engineering bench or bring in new talent form outside to stay competitive. Otherwise, Apple Inc. will simply fall behind, as the world is constantly moving forward.
No comments:
Post a Comment