Paul Mampilly Declares the Decline of Apple’s Stock

Paul Mampilly Apple Stock
Paul Mampilly Declares Apple Stock Decline

According to Paul Mampilly, Apple is not doing what it needs to do to secure its future. For example, Apple (AAPL) is not investing in the technological developments that are necessary to give it a foothold in future years. In contrast, Google and Amazon have embraced the developments and are running away with them.

Paul Mampilly has declared Apple to be dead, but that’s a little premature. It seems that Apple will reach its peak this year but then the company and its stock price are going to start sliding down hill.

Paul Mampilly has been on Wall Street since 1991when he started his career as an assistant portfolio manager at Bankers Trust. After that, he had the opportunity to manage accounts worth millions of dollars for ING and Deutsche Bank. In 2006, he became a hedge fund manager with Kinetics Asset Management and helped the company’s assets grow to $25 billion. Barron’s took notice of this fund and labeled it as one of the “World’s Best” hedge funds for averaging 26 percent annual returns during Paul Mampilly’s leadership.

Paul Mampilly has been incorrect in his predictions about Apple stock for the past year. Warren Buffet purchased Apple shares in the amount of $20 billion, and the price looked as if it would never stop climbing higher. At the same time, Apple’s business has not been growing and has even been decreasing. Paul Mampilly thinks that people are buying Apple stock because of what it used to be when Steve Jobs introduced the public to truly innovative products.

One example is the iPod that came out in 2001. That made it possible to always have tens of thousands of songs at your fingertips and changed the way that people listen to music forever.

Another example is the iPhone of 2007. This iPhone is a mini-computer that made it unnecessary for you to run to your computer any time that you wanted to get online.

The third example is the iPad from 2010 that made laptops superfluous.

In 2011, we lost Steve Jobs, and Apple has not given us even one new ingenious product since then. Now, all Apple can seem to do is change the size, the model and the colors of its already existing products. You can now choose between five different types of iPhone, and they all come in numerous sizes and colors.

The latest Apple iPhone can recognize people’s faces, and it comes with an OLED display. Lots of people think that these two features are very impressive, but Steve Wozniak is not one of them. He is keeping his iPhone 8 that he says isn’t any different from the iPhone 7 or the iPhone 6.

It appears that there is one huge thing on the horizon, and it is something that will lead Apple’s stock investors to be very unhappy. The thing is Chromebook. Chromebook uses Google’s software, and it is cloud-based.

Apple used to be the big thing in schools, but now Chromebook has stolen that spot with Chromebooks taking over a 58 percent market share in the schools. Even Paul Mampilly’s children are currently using Chromebooks, and their school is taking advantage of Google’s cloud-based processing as well as its spreadsheet and presentation apps.

This is a red flag warning for those who are looking at iPhone sales as they consider Apple’s stock price. Apple’s distinctive label, standing and consumer support all begin with kids who use their products.

Paul Mampilly believes that Apple became the powerhouse that it is because it flooded the schools with its products. When the year 2000 came around, those kids had graduated and were making a lot of money. They were emotionally connected to Apple because they grew up with Apple products. Now, Google is doing what Apple did in the 1990s, and the kids are learning to use voice commands to operate their systems rather than the keyboard. Amazon has also reached out to the kids by offering them the Alexa platform and Echo devices.

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The voice rather than the typed word as a means of communicating with a computer is positively radical, and this radical shift is evident in the increasing sales of speakers that can be used to connect to the cloud platform of Google Assistant and Alexa.

In 2011, Apple was at the forefront of this market when it launched Siri. It hasn’t improved Siri since then, and Amazon and Google have surpassed its technology. Because Apple would rather concentrate on its old products rather than create new ones, Amazon and Google are only going to increase their lead in this market. Then, Apple’s stock price will begin to go down.

Because of Apple, Blackberry, Nokia and other cell phone companies were doomed to fail because they were in the position that Apple is in today. They focused on their existing products and failed to create innovative ones. Paul Mampilly thinks that this is how Apple is going to meet its end.

Apple’s stock price is increasing, but that is only because investors like Warren Bufffet are bidding it up. Besides that, Apple purchases billions of dollars worth of its own stock every quarter. The fact remains that Apple is losing its main customer base and that is the kids. It is also not remaining at the head of innovation by investing in voice-based cloud platforms. In 2018, Apple’s stock price will continue to decline.

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