Apple, Innovator to Incumbent

Abstract

The authors of this paper have harbored doubts about the continued viability of Apple stock. Like most people, the majority of the information that the authors absorb on the market is verbal. We have, like everyone else, heard the ‘story stock’ stories. “Amazon will subsidize tablets to sell media, crushing Apple.” “Samsung will sell lots of phones, crushing Apple.” And the ubiquitous “Cheap tablets and phones from China will flood the market, crushing Apple.” In addition, there is the new threat of streaming media. Forget ‘Cloudy with a Chance of Meatballs.’ We are all expecting Apple sauce to fall from the sky.