Apple may have missed the boat on tapping into the aspirational shopper — by about three years to be precise.
The iPhone maker is allegedly looking to roll out a $1,000 model with its next release, probably in late September, according to a Goldman Sachs report.
In the report Goldman raised its price target on Apple, despite slowing smart phone sales leading into the debut of the new iPhone model.
If the analysis is true, it shows that Apple — or at least Goldman if not true — have lost touch with the retail market. Sure Apple may be able to sell a $1,000 phone set to the rich and famous, but there are no large-scale buyers out there for a $1,000 unsubsidized model.
The aspirational consumer has certainly left the building over the last two years as witnessed by Michael Kors, Coach, Ralph Lauren and may other retailers hawking higher-priced merchandise to wanna-be “in” people.
Somehow, this may be the tipping point for Apple –the high-water mark for the stock — as far as smart phone sales go. The company needs to move forward. Like when it came out with the iPod and moved from computers or when it came out with the original iPhone.
Never the first mover but it did it better and sleeker.
Where is the next “thing”? I don’t get paid enough to come up with that.
But the company is sitting on tremendous pile of cash, so perhaps it’s not organically grown, but my bet would be a new gadget for the home. Siri on steroids that would put Amazon’s Alexa in the same category as Microsoft’s Zune music player as garage sale merchandise
That’s what takes the stock over the $1,000 a share price, not a gold-encrusted iPhone.
If the US markets are doing so well, then why are so many Wall Street chiefs talking doomsday?
The VIX or “fear” index is clearly in the complacency zone at below 11, yet Ray Dalio head of Bridgewater, the largest hedge fund with assets under management of more than $100 billion.
“So we fear that whatever the magnitude of the downturn that eventually comes, whenever it eventually comes, it will likely produce much greater social and political conflict than currently exists,” Dalio wrote in a post on LinkedIn over the weekend.
While Dalio does not see this unraveling occurring in the nearest term, he does believe it could happen before Trump’s first term ends.
I usually put these types of comments about market doomsaying in the camp of fear porn to generate clicks on YouTube channels to sell precious metals, but Dalio is on the inside of the room, so I feel it has some importance.