Apple Inc. In Transition; Wells Fargo Rates As Market Perform

Apple Inc. In Transition; Wells Fargo Rates As Market Perform
ElisaRiva / Pixabay

Earlier today, April 11th, Wells Fargo published an investors note on Apple Inc. (NASDAQ:AAPL). In the note, Wells Fargo analyst Maynard Um suggested that Apple Inc. (NASDAQ:AAPL) is in a transitional phase right now, and that the tech giant may not offer much appreciation over the short term. He goes to great pains to explain he is not casting a pall over Apple’s prospects; rather, he is making a case for long-term growth at the expense of short term profits.

Apple picking up steam in “third phase”

Um argues that the technology sector has already passed through two developmental phases and is just beginning a third phase. He calls the initial phase the ecosystem creation phase (2007-2010). The second just finishing up phase is the focus on establishing market share phase (2010-2013).

This Multi-Billion Dollar Energy Fund Is Benefitting From The Recent Market Volatility [Exclusive And In-Depth]

EnergyHITE Hedge's alpha-only funds returned 0.62% for the second quarter, bringing their first-half returns for 2022 to 8.5%. The funds have grown their assets under management to more than $725 million as of Aug. 1. The firm has added about $200 million in assets since the beginning of the year, moving it closer to its Read More

The third phase is not formally named yet, but involves companies in the process of developing the “Internet of things.” In this nascent third phase, companies are focusing on extending their ecosystem to include physical devices, from smartphones to smarthouses to smartwatches.

Um forecasts that Apple will enter the wearable and connected device mar