I’ve been buying and selling Apple stock for years. AAPL is hovering near record highs, even during a down market. Based on the iPhone 4’s antenna problems, I can ask, “Is it time to sell Apple stock?” Jason Schwarz of Seeking Alpha on the iPhone 4 antenna problem’s fallout:
- This is nothing new. Apple users are confident that the problem will be fixed.
- Nobody is in a hurry to return the phone. Apple users are confident that the problem will be fixed. Users know that Apple will do whatever it takes to resolve this, even if it means giving everyone a new phone.
- The Apple model of dealing with problems is that they don’t tell us anything until it is resolved.
- These reception issues are not affecting sales. iPhone 4 is sold out everywhere.
- Apple is set to go on a market share ride.
For #1, I’m not so confident that a software fix can be made. For #2, replacing 2.5 million iPhones could cost $1-billion. That’s not a hiccup, that’s a stumble.