American investment guru has thrown in his opinion regarding the Apple stock in 2018. He has bad news for any person who is thinking of investing in the company from this year. Paul Mampilly term Apple as a company that is behind its glory days. Apple right now is no longer the company it was in the past. There has been a lackluster performance from the company due to lack of innovation. When a company fails to bring a new product to the market, it is definitely going to reach a point where the customers will get tired of buying the same product over and over again.The behavior of recycling the same product over and over again is what Apple has been doing for the last seven years. A company that was known for bringing unique innovations to the market is now going for almost a decade with no new product. It is a tragedy for this business.
Sooner rather than later, the company will face problems when customers stop buying their product as a result of monotony. In the spirit of diversification, Apple is supposed to introduce something new that will shore up the stock prices. The continued marketing of its existing products cannot work forever. Soon there will be no improvements worth the increased marketing budget. Just last year, the company was performing badly until Warren Buffet bought shares worth $20 billion for its marketing budget. This is the only reason why the market moved up in the last one year.
Paul Mampilly says that with the competition which is coming from Amazon and Google, the market is going to face some problems in the future. These two companies are putting up competition that Apple cannot match up to if nothing is done. The company needs to work on introducing a new product in the market, or the prices of its stock will fall hard. Since 2011 the company has only been recycling their iPhone product from one version to another with the only difference being a few specifications. Users of the iPhone have started complaining that there is no need to upgrade their phones to the latest releases since the profits are almost the same.
About Paul Mampilly
Paul Mampilly is a great investor who has high ability to read the market and determine the likely behavior. He has predicted stock markets before, and most of his prediction come to pass.Paul is the owner of the “Profits Unlimited” newsletter.