Did Apple (AAPL) Screw Up in Europe?
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Price: $311.75 -0.52%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 0.4%
EPS Growth %: +20.4%
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Apple's (Nasdaq: AAPL) iPhone 4S is said to be doing bad in Europe, and sources say this is partly due to the souring economy over there.
Debt issues, cost of borrowing, unemployment, and so on, will certainly hamper one's ability or desire to invest in the latest and greatest technology.
But look at the U.S. For the past two to three years, the U.S. has been in recession (or close to) since the financial meltdown of 2008-09. Despite the crunch and subsequent increase in unemployment, both Apple products and stock have remained in very high demand.
The U.S. consumer somehow found a way to buy the newest technology from Apple despite a dour outlook. We're no psychologists, but the sales suggest people would be more willing to spend money on a device that gives them a sense of pride and is more readily attainable, in comparison with say a new auto or second home (or first home, for many).
Also undoubtedly impacting European's decision not to get involved with the latest iPhone: the best new feature -- Siri -- doesn't get European languages or accents.
Reports earlier this week suggested Apple is gaining market share in the U.S. and U.K., to 36 percent and 25 percent, respectively, but losing share in Germany, France and Spain.
Conversely, Google (Nasdaq: GOOG) Android-based smartphones are making gains, providing a low-cost alternative to the iPhone.
Debt issues, cost of borrowing, unemployment, and so on, will certainly hamper one's ability or desire to invest in the latest and greatest technology.
But look at the U.S. For the past two to three years, the U.S. has been in recession (or close to) since the financial meltdown of 2008-09. Despite the crunch and subsequent increase in unemployment, both Apple products and stock have remained in very high demand.
The U.S. consumer somehow found a way to buy the newest technology from Apple despite a dour outlook. We're no psychologists, but the sales suggest people would be more willing to spend money on a device that gives them a sense of pride and is more readily attainable, in comparison with say a new auto or second home (or first home, for many).
Also undoubtedly impacting European's decision not to get involved with the latest iPhone: the best new feature -- Siri -- doesn't get European languages or accents.
Reports earlier this week suggested Apple is gaining market share in the U.S. and U.K., to 36 percent and 25 percent, respectively, but losing share in Germany, France and Spain.
Conversely, Google (Nasdaq: GOOG) Android-based smartphones are making gains, providing a low-cost alternative to the iPhone.
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