Apple’s Gaming Market
On September 11, 2008, GettingRicher posted the following:
I think the analysts missed it again. The addition of the speakers and microphone to the iPod Touch is going to be huge for Apple. The iPod Touch could well become the number one hand held gaming device on the market. Huge money is made by the hand held game makers and now Apple getting some of that money.
One huge advantage the iPod Touch has over the other hand held gaming devices is all the free and low cost games. As other kids see all the cool games they will want one. The Touch is really going to become one big money maker. Not only can people play games on them they get the best music player Apple ever built. They also get internet with the wi-fi and all the other features of the iPod Touch.
Looking at the markets Apple has gone into since the release of the iPhone and I see Apple spreading out into some large markets.
The cell phone market.
The GPS market.
The hand held computer market.
The hand held game market.
The wireless headset market.
The iPhone sure change things. I knew a woman last year who had a GPS device for directions, a hand held computer to keep track of events and for the calculater, an iPod for Music and video, a Blackberry cell phone for calls and e-mail, and a hand held gaming device she carried in her purse along with the chargers and back up batteries for all the above devices.
Today she only needs an iPhone, back up battery and charger and has all that extra space available for other things.
I do not know why Apple does not do one of those I am a Mac comercials with a woman like that getting a call and pulling all the devices out until she finds her cell phone while the Mac person pulls out the iPhone and just wonders why the other person has all those devices in the first place.
Ah well, I know it really does not matter if Apple is making more and more money from more products sold in more markets as the stock price is now what it was almost a year ago on the when it hit 148.28 on the 24th of September. Just think in less than two weeks Apple will have shown a 0 dollar gain in an entire year if the price stays the same and if it goes lower that time will come sooner. Not bad for exceeding Analysts forcasts for earnings for four quarters, coming out with the MacBook Air, expanding the market for the iPhone from a single country to more than 70 countries, opening the Application store, the Movie store, updated models of all of its products, the time machine, opening more Apple stores around the world, adding sales of Apple products to India, becoming the number 1 music retailer, MobileME, becoming the number one seller of computers to schools and more.
I have to say the obvious as it looks to me like the price of the stock is not keeping up with Apples expanded markets and earnings.
Sorry for the rant as I am just a little frustrated and looking at that $115 stock price of earlier in the year and am wondering if Apples stock price will hit that once again or even drop below it. I am a little tired of the sell the news with Apple. Apple releases the MacBook air and down we go, earnings blow away analysts forcasts again and down we go, more countries to sell the iPhone and down we go, Millions of people buying iPhones and down we go, it is getting a little old.
Sometimes I feel it would be nice to go back to the days before the uptick rule was changed so Apple would actually go up on good news once in a while.
It is funny to watch the pump and dumps with RIMM. Gee a flip phone up goes the stock. Gee Microsoft search on the Blackberry up goes RIMM. Then they will flip it again for the dump to rinse and repeat later. The same things that would take Apple stock price down brings up RIMMs stock price.
The new stock market.
techstock2000 @ September 11, 2008
I agree that the ipod touch is about to become a very big product, partly because of the app store and games, and partly because of the reduced price, wifi internet access and itunes integration with videos plus music and audible books and itunes U.
What an incredible product! Compare that to a PSP. The touch is a must-have device.
I’m sure I’ll be buying at least one this christmas.
The PSP and GameBoys also require discs and cartridges. The Touch uses downloads, therefore nothing to scratch, lose, get stolen, waste pocket space…..
People so underestimate the touch. It is the future iPod platform, both from high end and low end. The portable web browser and all the other apps it can support, will make it the must have portable computer for all those who don’t want an iPhone.
You raise a very important point: This increasing disconnect between the performance of a company and the price of its stock is vexing.
I’ve owned Apple stock for well over ten years, having bought and sold it several times. In other words, I’ve mostly been a long term investor in Apple stock and sold it now and again.
Perhaps my biggest insight to Apple stock is the following: Whenever I’ve sold it, I’ve always regretted it. Because in the very long run it has always ended up higher.
Second, I try to focus on the financial health and business model going forward. Fact is, Apple’s is really phenomenal.
Third, when I start to get nervous from the big sell-offs… like what we’re experiencing now to a degree… which invariably have nothing to do with their future potential, then I look at Apple’s 4 year chart.
Point is, for this stock in particular, for me any way… it’s important to keep in mind that market forces are not transparent and are based on manipulation by some very wealthy, greedy behind-the-scenes players. It’s their market, they just let us play in it.
In the long run, as long as Apple continues to do what it does: creating innovative beautifully designed products, employing superb marketing with a relentless focus on their target audience… then I cannot think of a better company to park my money for the next 4 years.