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Apple Should Rule the World

Published 03/18/2012, 03:21 AM
Updated 07/09/2023, 06:31 AM
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Apple Inc (NASDAQ:AAPL) is by far the largest stock by market capitalization in the world. The company is now valued at more than $500 billion and climbing. AAPL stock is now more valuable than the entire retail sector combined and that includes WalMart Stores Inc (NYSE:WMT). This company has taken over the world and they only have a handful of products.

Friday morning, the i-Pad 3 went on sale and consumers are lining up in the streets for this device. For the life of me I do not understand why consumers do not wait for i-Pad 4 or i-Pad 5 to be developed. It will usually be just a few months before the next upgraded device will be available. I believe the i-Phone 4s is available already and I would simply wait for i-Phone 5 or 6 before taking a look at another one. It seems that the youth loves these new upgraded features and has to own these products as soon as they are released for sale to the public. As an investor and a trader I must tip my cap to this wonderful innovative company. Once again, Apple Inc should run the world.

Apple Inc displays real capitalism. This company takes no prisoners when it creates a product. Just look at what Apple Inc has done to companies such as Research In Motion Limited (NASDAQ:RIMM), Nokia Corp (NYSE:NOK), and many others. It has virtually knocked these companies right out of business. When is the last time that you heard the term crack-berry? I'm sure it has been a while. Once again, Apple Inc should run the world.

The U.S. government is reported to be in debt by $15.5 trillion dollars. Who knows if this debt by the U.S. government can ever be repaid? The government operates on tax payers dollars which always seems to go up. Apple Inc has a ton of cash in the bank. The company has no debt and if it ever gets in trouble it just creates another iPad, or i-Phone. Just think about it, what is better than 7 minute abs? Obviously, it is 6 minute abs. The only problem with six minute abs is that once it goes to zero minute abs they are out of business. When is the last time you saw a commercial for six minute abs? Apple Inc can create i-Pad 10,000 if it wants, this is genius.

The company is so big that it is a large part of both the S&P 500 Index and the NASDAQ 100 Index. Perhaps, Apple Inc should simply become its own index. It has already overtaken all of the retail sector; perhaps it could be called the i-index. Once again, Apple Inc should run the world.

Apple Inc has a unique way of re-inventing an existing product. Look how they revolutionized the Sony walk-man, the tablet, the smart phone, the home computer, and next it will be the television. I'm now waiting for Apple Inc to get into the toaster business, the sneaker business, and even the handbag business. Think about it, if my wife could carry here pocketbook with a built in camera, 4G internet, and unlimited shopping apps built into here Coach bag. I think she would love it. Then when that bag goes out of style she can get the next upgraded version. Oh boy, I better make a lot of money. Once again, Apple Inc should run the world.

There only seems to be one problem for Apple Inc as it grows and that is global debt. If these growing economies slow down or hit a road-bump it could be problematic for Apple's growth. The company is now priced for perfection. Everyone is expecting higher earnings. That means that margins need to increase, however, if interest rates rise it is telling the world that inflation is creeping into the economy. Low rates will not last forever and there are now signs that inflation is starting to expand quickly. This is not me telling you this, this is the iShares Barclays 20+ Yr Treasury Bond (ETF) (NYSEARCA:TLT) telling you this.

Leading emerging markets such as China, India, and Brazil are all fighting inflation already. These are the new customers that Apple Inc is now targeting. If these customers have to back off from spending that could hurt the future earnings of the world's largest company. Perhaps, someone can design an app to solve this potential problem. Either way, Apple should run the world.

AAPL

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