In one of his recent publications of his newsletter at Banyan Hill Publishing, Ted Bauman explains the reasons leading to the plunging of Apple price stocks. He starts by saying that the New York Stock Exchange took a large amount of the company’s money. Additionally, Bauman outlines the reasons why the iPhone maker’s future is not as promising as it was some ten years back. According to the recently released fourth –quarter fiscal report from Apple, the total company’s earnings per share stood at $2.91 and the total revenue at $62.1 billion. Commenting about this report, Ted Bauman noted that the investors look upon the company’s future performance but not the past. He added that due to the company’s renowned growth and innovation expertise, the investors are full of expectations in the company’s stocks contrary to the report.
Ted Bauman is however quick to add that the company has experienced a slow or no growth since the death of Steve Jobs, the former Chief Executive Officer, in 2015. Additionally, the snail-paced growth contributed to the company’s share diving. Ted Bauman pointed out that although Apple is the highest earning company in the world and its earnings result from the company’s pricing power. He said that the company sells its products at extremely high prices not because they are better than the phones from its competitors but because of the brand. Many customers are ready to pay an extra coin to be part of Apple brand because the company invested in the brand. However, he warns that to bring a brand to that level is very expensive and Apple worked on it.
— Ted Bauman Guru (@TedBaumanGuru) December 19, 2018
Most of the company’s profit comes through the sale of the iPhone that holds the large market share in the United States, United Kingdom, and Japan. Globally, iPhone holds a small percentage of 20 percent of the smartphone market. The unique experience in Apple’s brand makes the customers accept to pay more. On the future of Apple in the stock market, Ted Bauman notes that it is likely to hit low because the financial report results brought lower figures than anticipated by analysts who predicted it to hit $93 billion in revenue.