Selling AAPL short? A sucker bet, long-term

Posted: May 22, 2014 in Apple
Tags: , , , , , , , , ,

Illuminated iPhone 5 Apps screen on a computer keyboard Editorial Photography

© Paul Radulescu

OK, so Google brand just elbowed Apple brand out of the way in the nonstop roller derby of world’s most valuable  brand. So what? So this means that Apple’s time in the sun as Master of the Innovation Universe is history? Don’t bank on it.

In an innovation slug-fest, in which the physics associated with mega companies makes it ever more difficult to stop-and-pivot on a dime, big cash reserves can buy a lot of innovation. Why do you think Google/YouTube is in perpetual shopping mode? Ditto Apple. Double-ditto Facebook.  Each of these cash-laden titanosaurs has strengths and weaknesses. And, when you blow away all the smoke,  GOOG is at heart a search engine, FB is a social network and AAPL manufactures consumer electronics and computer software products.

As long as Apple makes and sells things with which people actually do things–and without which those users would be incapable of searching anything and/or posting incessant updates, it’s going to have the inside track in the value derby.

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