Apple (Nasdaq:AAPL) releases earnings soon. Follow this Bear Case Scenario as you ponder management comments. The recent decisions to continue with a premium pricing strategy prevents gross margin compression. However low-end sales are expected to grow more rapidly than high-end. Has Apple missed the boat to maintain dominance on a large-scale and will it eventually revert to a niche product. Samsung offers a wide range of products which appeal to many sectors. Apple only offers a few which it believes are kick ass. Henry Ford had the same concept when he offered any colour of Model T that you wanted as long as it was black. They have never been number one since then. The Carl Icahn side-show may distract management a little bit but up to now the market is not howling for radically restructure at Apple.
George Gutowski writes from a Caveat Emptor Perspective.