Why I’d Buy Apple Today
January 28, 2009 Software Review
At $86 a share, Apple is now trading on just 16 times forecast earnings, the lowest level in years.
Shares no longer requires much growth to justify the share price. And that $86 includes about $18 per share in net net cash and equivalents. The company enters the downturn with a solid balance sheet and a matchless global franchise.
And, importantly, Apple has barely begun selling to the billions of emerging consumers in Asia. Collapsing prices of components, incidentally, will also be great for profit margins and may help offset slowing sales.
And Apple may actually do OK among Western consumers, too. And although Macs may cost more up-front than PC’s, they may even work out cheaper in real terms over time because they are apt to have fewer problems.
PC’s seem to need tons more work – there are endless patches to download, bugs to fix, caches to clear and programs to relaunch. Don’t forget buying, installing and updating virus shields. PC’s seem less reliable, and customer service isn’t in the same league. Microsoft Customer Support charges $59 just to respond to an email.
If a PC costs $400 less than a Mac but wastes half an hour of your time each week, over three years you’re putting in 78 hours to save $400.
That’s barely $5 an hour: Not even minimum wage. Rather get a second job at a burger outlet and use the extre money to upgrade to a Mac.
