Apple's quarterly results disappointed Wall Street, which had expected bigger sales of iPads.
Apple's stock traded off modestly in the after-market, but it quickly bounced back. And that's as it should be, says David Garrity, a principal with GVA Research.
Apple has just "refreshed" most of its product line, launching a new iPhone, new Macs, new iPods, and two new iPads—a fourth-generation, full-size iPad and a smaller "iPad Mini." Despite reports of supply-chain problems, especially for the iPhone 5, Garrity believes that Apple is poised to have an excellent Q4. And investors have already begun to focus on that.
And what about next year? What happens when the current crop of new products are a couple of quarters old and tech consumers hungry for the "latest, greatest" gadgets have nothing new from Apple to buy?
Apple will be fine, Garrity argues.
First, there are still hundreds of millions of potential new customers for the products Apple has already launched. China Mobile, for example, has yet to strike a deal to sell the iPhone to its hundreds of millions of subscribers, and when it does, Apple will have access to a huge new market.
Also, Apple will likely release a new product this spring, Garrity says—perhaps the much-rumored full-fledged Apple TV. And that could help fill in the gap.
Bottom line, Garrity says, Apple's still a "buy."
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