Apple is counting on its line of retail stores to increase sales, according to a CBS MarketWatch
article. If sales — and marketshare — can rise, so can the company’s stock.
“For 15 years, investors have owned the stock at the same price,” John Bollinger, president of EquityTrader.com and creator of the Bollinger bands technical indicator, told CBS MarketWatch. “This is shameful. …You need a fundamental change in the company’s business plan.”
After hitting a high of 16 percent way back in 1986, Apple’s U.S. market steadily declined to around 5 percent, where it has resided since 1997, according to IDC. And while the company’s stock participated in the Net boom along with everyone else, it has since settled back to its 1987 levels.
Of course, Apple is still raking in profits and being praised for its wonderful designs. However, the retail strategy could help them gain market share over the next few years, Joseph Beaulieu, an analyst at Morningstar, told CBS MarketWatch.
According to the article, A.G. Edwards goes so far as to posit in a research note that “this is one of the most opportune times Apple has had in many years to gain marketshare,” thanks to its product offerings, improved sales channel and the stagnation of the Windows platform.
Growth is the key to boosting its share price in the long run, Bruce Lupatkin, general partner at North Bay Technology Partners, a money management firm that specializes in tech stocks, told CBS MarketWatch. A 2 percent conversion rate would translate into a 50 percent increase in Apple’s share in the home market, said Charles Wolf, an analyst at Needham & Co.