Is The Apple Ripe?

Lets get into the Juicy details of (AAPL) shall we.

The App Store. Have you heard about it? There’s nothing else like it on the horizon, and it will mean many billions of revenue for Apple. (AAPL) has been able to take an iTunes sales platform and convert that over to software sales. It is not just that they did it, but that the customers have followed. There are now thousands of applications that can be downloaded. The application market is expected to reach $1+ billion this year. Apple’s expected share is a whopping 30%. Ultimately, the app store is much bigger than the iPhone or the apps themselves. It is a major revenue stream driven by the creative power of the masses. And those kinds of opportunities are what all of us investors live for.

I think we will see a cheaper iPhone in 2009, if my assumption inside one of Jobs’ comments is correct. Jobs’ was asked what Apple needed to do to maintain its success and growth with the iPhone into 2009, given that its competitors are gunning for the company with their own versions of touch-screen phones run by sophisticated operating systems. Steve said, “I think we have to be the best, and I think we have to not leave a price umbrella underneath us.”

Apple is not only a manufacturer of software and consumer electronics, it’s a major lifestyle. Most people instantly associate MP3s with iPods, and smart phones with the iPhone. Apple (AAPL) has 28.1 Billion in cash on hand and despite a bearish outlook by analysts and 57% decline in (AAPL) share prices last year, Apple still managed to overcome the worst holiday shopping season in at least four decades by surpassing analyst’s estimates for profit and sales last quarter. Now that is success. Will Apple (AAPL) decide to go head to head with Dell on pricing? Stay tuned, I think it is very good possibility in the near future.

Apple looks better and better and is cash rich with no debt plus multiple streams of income. I say Apple (AAPL) will shine in 2009.

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