In advance of Apple (NASDAQ:AAPL) earnings on Tuesday, I talked with WRKO Boston, 680 AM on the radio dial, about what’s next for this company.
You can get my full — and very bearish — take on Apple earnings here in a longer written post, but this quick audio clip sums it up I think. Namely, that the bottom line is the bottom line and shrinking margins and market share mean trouble for AAPL.
It’s partially a story of innovation fatigue and partially a story of consumer tastes changing as Google (NASDAQ:GOOG) Android devices eats up some of the iPad and iPhone sales. But more importantly, the fact that Apple can’t price its gadgets at a premium like it once did. Competitor are close enough in features to offer a similar experience (or some would even argue better) at a lower price.
The result is a big time anchor on AAPL stock, with Apple falling 25% year-to-date and dropping to under $400 from over $700 last fall.
Take a listen for the risks after Apple earnings, and why I think this company will see continued headwinds.
Jeff Reeves is the editor of InvestorPlace.com and the author of “The Frugal Investor’s Guide to Finding Great Stocks.” Write him at firstname.lastname@example.org or follow him on Twitter via @JeffReevesIP. As of this writing, he did not own a position in any of the stocks named here.