After Apple Inc. (NASDAQ:AAPL)’s surge to over $100 a share for the first time since a recent stock split, the stock has been the focus by many investors and analysts. Tom Giles talked on Bloomberg’s “In The Loop” and focused on Apple and how the company has remained strong and even grown bigger after the death of co-founder Steve Jobs.
Giles stated that there were widespread concerns about the direction Apple Inc. (NASDAQ:AAPL) would take after Jobs. However, he said that the current CEO, Tim Cook, has not only fitted perfectly into Job’s shoes, but is also taking the company to new levels in terms of new and exciting products. He cited the upcoming iPhone 6 and the expected wrist-wearable device coming as a watch, as some of the exciting products and pipeline refreshments that are taking place at Apple.
Although Apple Inc. (NASDAQ:AAPL) has been able to keep investors hopeful about its future, it has also spent so much in research and development that investors would want to see results as soon as possible. However, Apple is a company that takes its time to get something big and new to the market. Giles said the company is a perfectionist, just as it was under Jobs.
“[…] We know they have been trying to make inroads, for example, in TV product. But they really faced a lot of challenges. Those content providers, the channels, etc. they do not want to give up the content very easily […],” stated Giles.
Although much has not been heard about Apple Inc. (NASDAQ:AAPL)’s TV products, Giles stated that wearables is segment that Apple has promised and the company can be expected to deliver on the same. Some on Wall Street think the iWatch can fetch up to $9 billion in more revenue for the company in just the first year. He said that $9 billion in added revenue is big money even for Apple. Nonetheless, Apple also faces some challenges, which may impact its growth.
“[…] They have made some good progress in China with regards to their partnership with China Mobile. But you’re seeing China make it a little harder for some of the foreign companies to do well in that country […],” said Giles.