Wednesday, December 12, 2012

Munster Says That Apple Stock Will Hit $900

Apple Inc.(NASDAQ:AAPL)’s performance on the stock market may have been disappointing in December, but people, who are still praying for a rebound, there is hope. There is nothing justifying the tumbling down of Apple shares to as low as $518 except the fact that the bears had taken control of the stock.

Google’s operating system, Android has faced rising popularity. This has hurt Apple since investors have been shying away. The so-called concerted bear attack seems to be working. Piper Jaffray analyst, Gene Munster believes that it is temporary. He thinks that the stock is heading towards $900. Well, the bears think otherwise.

Munster feels that there has been no fundamental reason behind Apple’s latest decline. He feels that there are a lot of rumors and that Street had too high expectations with Apple that has caused disappointments.
Munster thinks that Google’s dominance is not sustainable, even though Android has become more omnipresent than Apple’s iOS. He has also mentioned that it is unlikely that Android will continue to rise in the coming quarters. He strongly feels that one should calculate in terms of a year, and not just the September quarter.

Munster could be correct in saying that, since apart from Apple, Android OS has to rival with RIM’s BB10 operating system and Microsoft’s Windows Phone. Also, Apple has an advantage of an ecosystem to drive upcoming iPad and iPhone purchasers to switch. Google does not have that.

People, who love Apple, are likely to own more than one Apple device that are interrelated in some way or the other. Android actually does not have any advantage other than the price factor. The rumors surrounding the growth of Android rise, but Apple does not seem to bother.

Google bulls are of the opinion that Android OS is growing at a high pace and it constitutes a winning de vice market share.

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