As Apple builds out its ecosystem of products (iPod, iPhone, iPad, Mac), users tend to remain with one brand, making it "sticky." Hedge fund manager David Einhorn noted this fact earlier this year at an investment conference, thanks in large part to iOS and iCloud, Apple's mobile operating system and cloud computing offering. Einhorn recently pared his position in Apple, but still holds a good chunk of the Cupertino, Calif.-based Apple.
The recent increase in optimism is evident elsewhere on Wall Street, as some believe Apple's recent selloff was vastly overdone. Topeka Capital Markets analyst Brian White called the selloff in Apple shares "insanely insane" given the valuation at which Apple shares were trading.
Amazon (AMZN) and Google (GOOG) have had some success in the tablet and handset markets, but by and large it's still Apple's game. Kleiner Perkins partner Mary Meeker has done her traditional year-end look at the state of technology, and one of the slides shows Apple is poised to dominate this holiday season.
Children aged six to 12 tend to dominate parents spending for Christmas, and Apple is all over their lists to Santa. About 48% of this age group wants an iPad, 36% want an iPad mini, surprisingly the same percentage as the iPod Touch. One in three children this age want an iPhone for Christmas.If Meeker's presentation is correct and Wall Street analysts' aren't being overly optimistic, Apple could have a lot higher to go as we move into 2013. Interested in more on Apple? See TheStreet Ratings' report card for this stock. -- Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV