Morningstar Rating

Stock Research and Analysis

by Toan Tran
Momentum is quickly gathering behind Apple's iPhone, and it may be too late for competitors to stop the iPhone from reaching the critical mass that pulls users and developers into a virtuous cycle of growth.

We mentally disassemble Apple into four   Read more 

Bulls Say

The iPhone ecosystem has likely escaped the reach of any potential competitors. However the smartphone market shakes out, we believe the iPhone will capture a significant part of it.
At less than 10% share worldwide, the Mac computer can continue to increase its share as a capable Windows alternative.
Apple's retail stores are exposing a new generation of consumers to the breadth of the company's expanding product line. Read more 

Bears Say

Apple's sales are concentrated in the U.S. and must face the head winds of a secular change in consumer spending habits.

While an iconic U.S. brand, the company is less well-positioned in the relatively faster-growing international markets.
It may be difficult for the company to sustain innovation across its broad product line simultaneously, making it difficult for Apple to maintain its profitability and growth. Read more 

Strategy

Apple offers premium products with an unrelenting focus on great user experiences. The company sells hardware, software, and services that are easy to use across an integrated set of digital technology   Read more 

Management

Steve Jobs co-founded Apple in 1976, and rejoined the company as CEO in 1997. Jobs' health is a significant concern, which is somewhat alleviated by the fact that the company maintains a talented management bench and culture of innovation that will   Read more 

Profile

Apple designs personal computer hardware, software, and consumer devices, such as the iPod music player, the Macintosh computer, and the iPhone. Apple's iTunes online store   Read more 

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Weekly Market Wrap: 1/29/2010 
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