Top 5 Reasons Apple Stock Can’t Go Higher

Call me a pessimist.  But, if you’ve been following Apple closely (like we all do in this business), I’m sure you get the feeling that this relentless push to the upside has reached its upper limit.   As of this writing, Apple is trading at $305.29 per share and an analyst made a rather bold prediction that Apple’s stock price will reach $390.00 a year from now or sooner. 

Here are the reasons why this is wishful thinking.  And, to refrain from public humiliation, I will not name those brave Apple cultist-er…analysts.  By the way, I’m a certified Apple ‘Opinionator’ meaning, I have earned the right to criticize this company as I was a PC-turned-MAC convert and back to PC again (see why on number 2)!

1. Their products are too expensive.  Of course, I’m not just talking about the initial sticker shock of their new products for sale.  But, the used Apple product prices are beyond reason to me.  Case in point; found on Craigslist, a 2-year old iMac 24” (base model) listed for $1500.  For that amount, I can get my hands on a PC with four times the computation power and storage space.  Call me crazy, but sooner or later, consumers will wake up to the fact that “being cool” isn’t worth the price tag anymore.
2. Apple product life is too short (but maybe they designed it that way).  Three years ago I decided to see what all the hoopla was about and bought myself a brand new ($2,200) 24” iMac with the anodized aluminum trim and a cool factor of 11 out of 10.  When the thing won’t turn on anymore, I went to the local Apple store to get a repair diagnosis and cost estimate.  And, without writing the 4-letter word in all caps here, I will just say that having the extended warranty run out, a dead iMac and a 4-digit cost-to-repair estimate in my hands did not turn my frown upside down.  If I had given the okay to repair my iMac, my total 3-year cost to own would have been a whopping $3,400!  I asked myself, is being “cool” really worth it? 
3. The Mac OS is not as stable as the company claims them to be (it crashes just as frequently as Vista).   If their Mac OS Snow Leopard – or whatever cat they’re on now, is really rock solid as they claim them to be, then why do they only function under Apple hardware?  If what they produce is of true value, then it would work in a multitude of hardware and software environments.  Windows 7 64-bit and Ubuntu 10 are viable, feature-rich alternatives but best of all, they work with millions of hardware configurations so consumers are not locked in to Apple-specific (expensive) units.  And by the way, Ubuntu is FREE (it’s what CAM Trading relies on for file backups and redundancy).
4. iPad.  What is the point of this product?  My guess is, to look cool in public places!  I can tape three one-hundred dollar bills to my forehead and get more noticed in public than a $600 iPad.  What, the hundred dollar bills on my forehead can’t check email at a Starbucks you say?  You’re right, but who are you to think you’re so important that you can’t wait to get home to check your email on a 200 dollar PC?  Get a life!
5. Apple TV.  For years, Apple has been digging for gold to come up with a viable formula for ultimate sales success.  But, new LCD TVs are here with Netflix-ready and internet access.  This eliminates the need to buy a separate device for streaming movies and shows.  I believe Apple should cut their losses and exit out of that foolish product line. 

I realize that what I’m saying may offend a lot of people, but you can always put your money where your mouth is and prove me wrong by buying a few shares of Apple stock today to hold for a year!

This article should not be construed as financial advice.  In fact, anything written here should not be taken as financial advice and that you should seek the counsel of professionals before making changes to your investment portfolio.