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June 17, 2009
Apple as Religion
SNL Kagan, which publishes the Dow of Steve blog, recently had an article discussing lower prices initiated by apple in the Mac and iPhone product lines. The article fairly noted that the price cuts were in response to the weak consumer environment and tough competition while also noting that Apple still maintains its premium pricing strategy.
I think Apple's go to market strategy remains smart and still believe upside remains in the shares. Nevertheless, I trimmed positions at $133 as the risk-reward is less attractive following the surge in the stock this year (up more than 50%).
The reason I mention the SNL Kagan is because it contained a really cute quote that made me laugh. The article quotes Martin Lindstrom, brand consultant and author of "Buyology" comparing Apple brand loyalty to religion. "He said that when a study he helped conduct scanned the brains of both Apple fanatics and people who professed a strong faith in Christianity, the same regions in both groups' brains were activated."
Kagan wen on to note that "Lindstrom polled 2,0000 consumers and asked if they would tatoo an Apple logo on their arm. 'And 6.7% of Apple fans said yes.'
Lots to chew on there for Apple lovers and haters and there are plenty of both!
Posted by Steve Birenberg at June 17, 2009 08:38 AM in AAPL
cetv is down big time today. how much of the drop is due to the overall market and how much is secondary to the cfo stepping down?
Posted by: mp at June 22, 2009 01:48 PMI believe most of the drop north of $1 is due to the CFO leaving. I think the reason for his departure is legitimate and it is not unexpected to close followers of the company. However, CFO departures are never greeted happily on Wall Street. Furthermore, with the CEO having just left the company's management team is thin. Most emerging market stocks on my screen are down 3-5%, however. I think CETV nedes to beef up its management team somewhat. Another issue is that there are virtually no Americans involved except at the Board level. This should no be an issue but some US investors may shy away from the company. Bottom line on today's action is that CETV picked an unfortunately bad day in the market to make the announcement.
Posted by: Steve at June 22, 2009 02:33 PMdo you think cetv is a buy at this level or is more downside to come?
Posted by: mp at June 23, 2009 09:05 AMI am not a buyer at current prices as I'd like to get better handle on current business trends for advertising sales. All else equal, I am a buyer at $12-14. I could easily change my mind if I felt ad sales were beginning to pick up. If 2010 is anice up year, the stock can double from here. I suspect that my next move in the stock will be based on what I hear on the 2Q conference call which is coming up in late July.
Posted by: Steve at June 23, 2009 09:29 AM