Apple not dazzling Consumer Reports
Over the last several months, I have been arguing the case that the long-term risks in Apple stock are rising. I have advanced two main arguments. First, competitors have caught up with Apple for all practical purposes. Second, Apple is failing to innovate at the rate it was innovating in the past.
Every time I write about competitors catching up with Apple I get a lot of pushback. In some instances, I have received more than 100 emails after publishing an article, mostly disagreeing with my proposition.
Now a respected reviewer agrees with me. Consumer Reports rates Apple's iPhone 5 the worst among the top three smart phones. On Verizon Wireless, iPhone 5 is not even ranked among the top three; all of Verizons’s top three smart phones are based on Google's Android. The top two phones are Motorola Droid Razr Maxx HD and Motorola Droid Razr HD.
Samsung Galaxy SIII is ranked number one on T-Mobile, number two on AT&T and Sprint and number three on Verizon. Surprisingly LG Optimus G is ranked number one on AT&T and Sprint. The iPhone 5 is ranked number three on AT&T and Sprint.
It is noteworthy that Nokia's Lumia 920 based on Microsoft Windows is not ranked in the top three.
There is still significant value in Apple stock. This is the reason that we continue to hold 20% of our original position although we have taken profits on the rest. Our plan is to add to the Apple position if hunt and destroy algorithms become active prior to Apple’s earnings report. (For details on hunt and destroy algorithms please see Beware Traders Who Want To Stop You Out Of Apple.)
About Me: I am an engineer and nuclear physicist by background. I founded two Inc. 500 companies, and have been involved in over 50 entrepreneurial ventures. I am the chief investment officer at The Arora Report, which publishes four newsletters to help investors profit from change. Write me: Nigam@TheAroraReport.com. Follow me here. Subscribers to The Arora Report are long Apple from $131 and have taken partial profits at $360, $525, $629, $568 and $610.
