The surrender of Apple’s (NASDAQ:AAPL) stock to gravity has persisted, but according to one analysis, it wasn’t time for investors to give up on the company just yet. According to Barron’s, most concerns about the company’s future, including threats to margins and profits as well as weaknesses at suppliers and lowered demand, appear overdone and factored into the stock.
“Apple has always been willing to give up some of its stellar profit margins to lure customers into its insular ecosystem,” the article said. “When it reports earnings on January 23, investors might become more reassured if Apple sells enough iPad minis to offset what it gave up in margins to the migration from bigger, more profitable iPads. Investors fretting about quieter Chinese stores on the debut of the iPhone 5 also overlooked the lottery and appointment systems Apple installed there to tame the unruly mobs lunging at previous product launches.”
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Part of the worry was that rival Samsung’s (SSNLF.PK) stock was pushing an all-time high. In addition, the Korean company announced last week that it had earned an operating profit of 8.8 trillion won, or $8.3 billion, in its latest quarter, a fifth consecutive quarterly record.
Here’s how Apple has traded since its last earnings report: