Steve Jobs is back, time to buy Apple?

By: ispeculatornew
Date posted: 09.14.2009 (5:00 am) | Write a Comment  (2 Comments)

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I was sent a link to this video from one of our readers, it is a touching video and one that strikes many of us who can relate in one way or another to what Steve Jobs went through. There is no doubt, Apple’s future has often been linked to Steve Jobs’ health. While it is true that his return to the company in 1997 marked the start of a remarkable comeback by Apple, the company has evolved a lot in the past decade and it is difficult to imagine that his return would have the incredible impact that many believe it will. Steve Jobs is surely a great mind, probably one of the best in the tech space, but the fact is that Apple’s main products, the Iphone and Ipod are likely to remain the major products of the company for the foreseeable future. And if that is the case, Apple’s current managers are up to the challenge.

Now I’m not saying that the return of Steve Jobs will not have an impact. I’m simply saying that we have to be careful no to overestimate the impact of his return or absence. The company will not sell millions more of its products if Steve Jobs come on our tv. The company will sell more if it continues to have superior products and continues to innovate as it has been doing for the past decade.  I’ve already stated that Apple will be very difficult to stop because of its current position and Steve Jobs is certain to be involved in the production of new products such as a competition to Amazon’s Kindle. But Apple would have done those things even without Steve Jobs so I would be cautious about trading on such news. I will be writing later this week about a new threat to Apple coming from applications available on its own Apps Store, ironic isn’t it? Things change quickly in this field and I’m confident that Apple remains a very promising company but with a current price at over 30 times its earnings, there might be some better opportunities elsewhere in the tech industry. Personally, I’d be very cautious about buying into Apple right now, especially if it is based on the return of Steve Jobs.

One of the interesting aspects to follow in regards to Apple will be if they renew or not their exclusive partnership with AT&T in the US for its Iphone. While the exclusive contract does give it a lot of cash, there is no doubt that it is also slowing its growth as many customers do not want to switch carriers. That decision will come soon as the partnership ends next year!

aapl

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2 Comments

  1. Comment by Zavi — September 14, 2009 @ 7:58 am

    So a round of applause and hats off to Apple and Steve Jobs! It is an amazing accomplishment to have change the world by creating ipod (nano, shuffle, itouch, etc.) and iphone. I think that Steve Jobs is a leader and a great man. But now, has the time come to take profit? hehe we’ll see.

  2. […] I have been in and out of trades with Apple in the past 2 years and while it does remain a volatile stock, I do believe now is a good time to get back on the train with Steve Jobs. […]

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