Investing in Apple: Heavy iPhone Pre-Demand
By Ian Cooper
When the iPod was first introduced in October 1991, shares of Apple were trading at a paltry $8. Today, post-iPod hysteria, the stock trades just north of $120 – a 1,400% gain in about 16 years. While you’re not likely to bank a 1,400% gain on a $120 stock over the next 16 years, banking at least 50% to 100% over that time frame isn’t out of the question.
One look at eBay’s auction boards is proof positive of spiking demand for the 8GB versions. One bid is up to $910 as of 12:30 pm ET on Monday. Another bid is up to $960. Think about that. If people are willing to shell out that kind of dough for an 8GB phone, pre-release, for a phone that will cost an alleged $600 at market, just imagine the release of pent up demand come June 29, 2007’s release date, and the immediate stock reaction.
Would I recommend buying Apple shares here in anticipation of the release? Absolutely. The share price could head higher on any news of limited supply issues. That news alone would spike the buzz, and most likely, the stock price. According to a brokerage report, initial monthly shipment of the iPhone will come in around 200,000 to 300,000, and should “eventually” climb to a million. That may suggest that demand will not be met.
Conspiracy theorists may view this as intentional. Traders can view this is a great buying opportunity.
Take care,
Ian L. Cooper
Early Alert Trader
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