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

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

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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