Sarang Ahuja’s latest post:
There was an interesting article in Business Insider today by Jay Yarow called “How Apple Becomes a $1 Trillion Company.” The whole article is interesting, but what I particularly want to focus on is his analysis of where Apple is now compared to where it was in the middle of 2013. At the time, Yarow says, Apple’s stock was trading at half of what it is currently trading for. People also believed that all of the fervor over the iPhone was dissipating, and that Apple would never recover from it’s decline.
Fast forward to now and Apple is surging, up 48% this year and above a $700 Billion valuation. And the prediction that many people had about the waning excitement over the iPhone turned out to be completely incorrect. When it was released, the iPhone 6 had people lined up around city blocks all across the country, and sales of the phone show no signs of slowing down, and are even expected to increase over the Holiday season. After this summary of Apple’s ups and downs over the last couple of years, Yarow goes on to make his case for how Apple could potentially become a $1 Trillion company.
One of the exciting things about Apple is that they always have a new product on the horizon. This lends a sort of cliff hanger element to every product that you buy or see advertised, as you are always also anticipating what will come next. The down side to this sort of strategy is that Apple runs the risk of having people say to themselves, “I’m not going to buy this product because I know a better one will be coming out soon.” But, evidently, the number of people who want to have the cool thing now outweighs the number who are willing to wait for the next cool thing. Their marketing strategy has proven to be both effective, especially of late, and interesting to watch.
from Sarang Ahuja http://ift.tt/1229yiQ