This is a brief note on Apple since it sold 5 million iPhones at the weekend. I have been saying that the upgrade cycle for Apple would be bullish and it has been as we are seeing record sales. This is due mostly to the fact that Apple's iPhone 5 launch is a true and dramatic upgrade for the iPhone versus the iPhone 4S launch last year, which was a bit of a disappointment in terms of features upgrade.
The question is what this will mean for earnings and the stock. I still believe that Apple's halo effect will prevent a large fall in stock price until we see at least one more earnings miss if not two more. The stock is trading at 16 times earnings, which is not huge, rather in line with the market. So if Apple performs decently well, it can easily get the earnings growth necessary to justif...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.