When will this ever end? The stock market’s often inaccurate prognosticators of doom and gloom and pie-in-the-sky predictions, have a predilection for companies who value growth at all costs, which, of course, has never, ever, never been Apple. Yet, Apple has a secret weapon which does not seem to be valued by Wall Street at all.
Go North, Young Man
Every quarter Apple surprises the street, critics, and Apple watchers alike with ever more stellar financials, sales growth, and obscene profits. 2015 is turning out to be much the same as every year since the iPhone was launched.
The market goes crazy over Microsoft’s inability to diversify its revenue stream, goes Lady Gaga over Google’s one-trick advertising pony, and seems overly enamored with Amazon’s ability to squeeze profits out online storage rather than online retailing.
You know what’s bigger than the iPhone, bigger than the iPad, and bigger than the Mac, Watch, Apple TV, and Apple Car? Combined?
One word. China.
OK, I could expand that and clarify it to include India, South America, untamed parts of Asia, or, I could sum up the China Syndrome by simply saying, ‘Upward mobility.’ Every Apple product is a much desired product of those who pay attention to quality, fashion, style, security, dependability, et al. You know. The people with money. And what do people with money do with their money? They buy Apple’s premium products as fast as they can.
Guess who else wants Apple’s premium line of technological gadgets? The upwardly mobile. As they increase their usage of plastic craptoid Android and Windows smartphones and tablets, they are automatically drawn toward Apple’s premium level products as functional status symbols.
Got a gold Watch? You’ve arrived and you’re telling the world in a not-so-subtle way. Got a gold iPhone, gold iPad, gold Mac, or gold-like Watch? You’re telling the world that you want to arrive, might have arrived, or that you’re pretending to have arrived, but you can afford what the glitterati have. Something made by Apple.
This is how the world works, folks. People without money buy a Kia, Nissan Versa, or Fiat Palio, or in countries with growing markets, Tata nano, Chery QQ, and others. But when those same economy car buyers get more money do they go out and buy another Kia or Tata? No. They move upwardly into the larger, more expensive market segments dominated by worldwide and well known premium and even luxury brands.
That’s Apple. While the automobile industry has dozens of premium car competitors around the world, what company really competes with Apple’s Mac, iPhone, iPad, and Watch in the premium segment of their respective markets?
Apple is all about the affordable luxuries which attract the upwardly mobile section of every country; developed, developing, or under developed. Apple products are what customers want when they grow tired of the plebeian and pedestrian status quo, represented by every other technology manufacturer that is not named Apple.
Let’s keep this a secret just between you and me. If market prognosticators and members of the technorati elite every figured this out they would make a bundle driving up Apple’s stock.