Apple Stock will continue droping until iphone5 release

Apple's droping

Now, Apple fell after reporting iPone sales, underscoring the computer maker's reliance on demand for smartphone. Apple sold 26 milion iPhone in the fiscal third quarter. Customers delayed purchases of existing iPhone version,(4S). Samsung Electronics Co. releases several designs a year to defend its lead. Everybody else has a much faster design cycle,

Trouble

 Apple has to come up with a new phone that's competitive not just when it comes out, but will stay competitive for a long period of time. It is increasingly difficult.While Apple is outgrowing its closest technology-industry peers, the company's sales climbed at the slowest pace. So Apple stock will keep droping until something is chaged.

 Gross margin is the best

 Gross margin, the percentage of sales remaining after deducting the costs of production, was 42.8 percent in the third quarter, It means Apple is still the best valuable company in the world. Apple's most revenue is earned by Software. So ROE is very good. and It is not  easily collaped, because It's Apple's world that Jobs made. And Apple has tremendous cash. If Apple want M&A, it is the same done. Apple's future is bright.

So, I recommend to wait iPhone5 to buy Apple Stock.