11 Reasons Why Apple Could Fall in 2011

Seeking Alpha
December 29, 2010

After revolutionizing the technology of media and personal electronic 
devices for the 21st century, staging one of the greatest comebacks 
of any company in history, and dominating consumer and investor 
attention for the past five years, Apple (AAPL) may be setting up for 
a hard fall.

Down and almost out, Apple was nothing to be too excited about 10 
years ago. Its Macintosh computers were the bulk of its product line, 
and PCs were in almost full control of the market. But with the 
invention of the iPod, which revolutionized the way we listen to and 
buy music, Apple began its road to recovery - which eventually led it 
not only to recovery, but to domination as well.

It's hard to even imagine what things were like before the iPod. 
Walkmen, CD players and far-inferior MP3 players would be almost 
embarrassing nowadays in comparison to the iPod, which has become the 
icon for music devices in the past few years. And the addition of the 
iPhone to Apple's product line was met with almost hysterical 
excitement, as lines outside of Apple stores became a common 
occurrence. Add to that a consistently-innovated computer and laptop 
line, thousands of "Apps" for the iPhone that allow people to do 
anything from looking up restaurants to turning on their cars, and 
the seemingly never-ending hype as to what Apple will do next, and it 
is obvious why Apple has been able to build such a powerhouse out of 
its brand.

But as is the case with every company, story, and fixation, the party 
eventually ends. Things can't improve and improve and improve and 
improve forever. At some point, what was once popular becomes 
second-class; what was once innovative, becomes old-fashioned; what 
was once a well-kept secret becomes a monotonous, repetitive idea 
that offers no benefit.

What I'm saying is that at some point Apple will no longer sit as 
loftily as it now does. It could fail to innovate, fail to care for 
its customers, or simply fail to meet expectations. And when that 
happens, we can expect "Apple lovers" to snap out of their 
whole-hearted faithful love-affair, wreaking havoc on the stock price 
if not also sending the company into frenzy. There is no doubt that 
Apple is one of the greatest companies in the world, with some of the 
greatest consumer products and revolutionary technologies. But at 
what point does the fun end?

11 Reasons Why Apple Could Fall in 2011

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http://seekingalpha.com/article/244055-11-reasons-why-apple-could-fall-in-2011

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