Topic: Growth Stocks

Wall Street Stock Forecaster Hotline – Friday, March 4, 2011

Article Excerpt

APPLE INC., $360.00, Nasdaq symbol AAPL, gained 3% this week after the company unveiled its new iPad tablet computer. Called the “iPad 2,” this new device is thinner and more powerful than the first iPad. Apple has been selling the original iPad for less than a year. The device now supplies 15% of the company’s revenue. Apple faces rising competition in the tablet computer market. That’s because other companies, such as Research in Motion and Motorola Mobility (see below) are launching new tablets this year. However, Apple has a number of advantages. For example, it buys many parts for its devices in bulk, which keeps its costs down. It also cuts costs by designing its own chips, and selling about a third of its iPads through its own stores. These advantages let Apple sell the iPad 2 for the same price as the original model, with little impact on its profit margins. Even so, the stock continues to be highly volatile…