SNL Kagan, which publishes the Dow of Steve blog, recently had an article discussing lower prices initiated by apple in the Mac and iPhone product lines. The article fairly noted that the price cuts were in response to the weak consumer environment and tough competition while also noting that Apple still maintains its premium pricing strategy.
I think Apple’s go to market strategy remains smart and still believe upside remains in the shares. Nevertheless, I trimmed positions at $133 as the risk-reward is less attractive following the surge in the stock this year (up more than 50%).
The reason I mention the SNL Kagan is because it contained a really cute quote that made me laugh. The article quotes Martin Lindstrom, brand consultant and author of “Buyology” comparing Apple brand loyalty to religion. “He said that when a study he helped conduct scanned the brains of both Apple fanatics and people who professed a strong faith in Christianity, the same regions in both groups’ brains were activated.”
Kagan wen on to note that “Lindstrom polled 2,0000 consumers and asked if they would tatoo an Apple logo on their arm. ‘And 6.7% of Apple fans said yes.’
Lots to chew on there for Apple lovers and haters and there are plenty of both!