Is Apple the Biggest Fraud in the Marketplace?

Is Apple the Biggest Fraud in the Marketplace?

Welcome to today’s Rude Awakening…

Second day in a row now of pretty flat market activity.

Let’s talk about everything important going on today…

Will We See an Inflection Point Today?

Days like this are interesting to see how they play out.

Because from here, we will have to stay especially focused on monitoring patterns, determining whether or not markets will continue to build, based on recent strength…

Continue in a middling pattern…

Or, have another downturn.

All of this will affect how we’ll be looking to make trades moving forward…

However, I want to focus today on one particular company, for a trading opportunity.

A Company Worth $2 Trillion — with a T!!!

Apple, Inc. (AAPL) is a company worth $2 trillion.

In my estimation, their valuation is an out and outright fraud.

AAPL has two extremely peculiar distinctions…

First, and I repeat, it’s the biggest fraud in the marketplace. This is in terms of their product. Their product line both underperforms and out prices anything comparable in the entire personal computer and technology industry.

In terms of adding and providing value to consumers, their products are quite honestly a joke.

Secondly, and what’s proven most important for them, is that they are marketing geniuses. In years to come, I believe there will be marketing and sales classes that center around the story of Apple. Because their success truly is a feat of marketing, and nothing else.

Looking at AAPL’s performance in yesterday’s market…

Apple’s Annual Update Meeting

Yesterday, during the latest iPhone announcement event, the big show we see from Apple every year or so, “invented” we could say by the late Steve Jobs…

Apple announced a new product, along with all the features of the latest iPhone 12 lineup.

And here’s what we got from the $2 trillion tech giant…

A new, miniature version of their bluetooth speaker, the HomePod mini. $99 before taxes and anything else, it’s way overpriced; you can get literally hundreds of equal or better quality bluetooth speakers right from Amazon for a third of the cost.

Next, the upgraded features for all iterations iPhone 12s.

Let’s start with what we’re NOT getting here…

As USA today wrote following the big event: “The iPhone 12 Pro (starting at $999) and iPhone 12 ($799), both available for preorder Friday (to ship out Oct. 23), will not come with wired EarPod headphones or the charging adapter (the little square), which links a device’s Lighting input and a USB power adapter.”

For the sake of “reducing their carbon footprint,” new iPhone buyers won’t be getting two of the core bonuses that have always come with an iPhone. We’ll get into why this just might be okay in a second, but it really is a blow to potential new iPhone buyers.

Well, at least we are getting a new, stronger screen!

Now, if you own Apple products, you’ve probably said for years how much you love their screens, they’re amazing. It might be one of the reasons you choose their phones, computers and monitors.

Well, it might surprise you to learn the screens aren’t Apple at all.

Apple never had the IP or tech to build great quality screens.

If you own any previous model Apple products, guess what… you have a Samsung screen!

Moving on from their new screens, the big announcement, of course, is they are rolling out 5G capacity with the iPhone 12. This is wonderful! This is cutting edge technology…!

The same cutting edge technology that I’ve already had on my Android for (no kidding) 18 months…

The Market Knows Apple Products Are Inferior

People say Apple is a premium product, which is absolutely true.

The thing is, it’s NOT a quality product!

It might surprise you to learn the iPhone has a 13.6% market share. Only 13% of all smartphones out there are iPhones.

That’s a lot lower than you likely thought, right?

The Mac is even worse, at 7.7%.

So, the market knows Apple offers inferior products at ridiculously high prices, but…

Cult Power

The power and prestige of Apple is all about their marketing and indoctrination.

They have built an absolutely amazing cult following.

Right in the prospectus for Apple computers, they write, and I quote:

“We enjoy above average margins due to market traction and brand acceptance.”

I added those underlines to make a point…

In plain English, this means they can charge more for their products because their buyers stick.

It’s all about brand loyalty.

If you buy Apple, you only buy Apple.

This is precisely why they can get away with not including the headphones and charger block you need to get full use out of the new iPhone…

A vast majority of iPhone 12 buyers already have multiples of the signature headphones and charger blocks. A heck of a lot of them probably don’t even use the old, corded headphones, because they have AirPods!

You may not be a person in this camp, but I guarantee you know at least a few people who are.

But, if you are an Apple buyer, I decided to show our Pro level traders how we can rip some profits from the company that’s been overcharging you and so many others for decades.

I wanted to put some of the money that Apple has essentially stolen from you or loved ones back in your pocket!!

If you want to learn more about our Pro level trades, you will be able to sign up for our Rude Awakening Pro service very soon…

But for now, that’s it for today!

Have a great rest of your trading day, folks.

And, please, look before you leap into the iPhone 12!!

We’ll talk again tomorrow…

Regards,

Scott Stewart

Scott Stewart
Editor, Rude Awakening

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Scott Stewart has been trading for decades. He has acted as an analyst and educator on the stock market for just as long. As your Rich Dad's Weekly Cash Flow analyst, Scott works tirelessly to ensure you know everything you need to do when entering into new positions, and adjusting trades as you go along....

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