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Apple Is Losing Its Luster, by Malcolm Berko | Creators Syndicate

I don’t think Apple (AAPL-$150) will be selling many iWatches this year. AAPL’s iPad sales are down 19 percent year over year, and iPhone sales have begun retreating. AAPL’s premium pricing strategy helps the company maintain strong margins but it limits sales growth. While first quarter revenues are up 4 percent from the same quarter last year — higher prices helped — the dip in iPhone sales is considered a red flag by the Street. AAPL has definitely lost some of its mojo. Meanwhile iPhones 6 and 7 have almost everything one would want or imagine. So devotees would have to be pixilated to buy the new “8” for $1,200, and then attend night classes at a community college to learn how to operate the thing so you can call home. However AAPL’s services segment, iTunes, iCloud, Apple Pay and the App store are hot items and will produce more than $30 billion in revenues this year. (AAPL should spin off this division to improve shareholder value.) Management believes these revenues can double to $60 billion by 2021.

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Apple Is Losing Its Luster, by Malcolm Berko | Creators Syndicate.

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