The 1 Thing Apple Investors Need to Watch in 2013

Updated

With a smaller iPad and increasing smartphone competition that includes Research In Motion's BlackBerry 10, which is due by the end of the month, investors appear convinced Apple will have to give up some of its legendary pricing premium in order to keep peers at bay.

Eroding carrier subsidies may also be hurting profits. At least week's Consumer Electronics Show, T-Mobile announced a potentially crazy $70 no-contract plan that includes unlimited data. We don't yet know if AT&T and Verizon will follow suit, but it seems unlikely given how much the pair make from data fees. A public outcry for lower pricing could change that.

Either way, this series of unfortunate events could push CEO Tim Cook to rethink pricing and subsidy arrangements, and in turn, exert pressure on gross margin. How likely is it to happen? I address this question and more in the video below. Please watch it, then weigh in using the comments box below.


Apple has been a longtime pick of Motley Fool superinvestor David Gardner, and it has soared more than 215% since he recommended it in January 2008. David specializes in identifying game-changing companies like Apple long before others are keen to their disruptive potential, and he helps like-minded investors profit while Wall Street catches up. Learn more about how he picks his winners with a free, personal tour of his flagship service, Supernova. Inside, you'll discover the science behind his market-trouncing returns. Just click here now for instant access.

The article The 1 Thing Apple Investors Need to Watch in 2013 originally appeared on Fool.com.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakersstock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+, Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement