With the release of Apple's new iPhone - iPhone 4, Apple's stocks were soaring as everyone expects the new iPhone to be a best seller in no time. This is not an unrealistic expectations as every time Apple unveils her new products, Apple's share prices reaches to a whole new frontier. Why so? This is simply because the new products (most of them) tend to sell like hot cakes. Take the iPad as an example, there are numerous reservations made prior to it be available. Or even Apple Air, the laptop which is the thinnest in the world, made its debut with a huge bang. We cannot deny Apple does a great job in selling its products.
So why is Apple so successful? Well, for one, Apple is successful because she is not an innovator. Sounds like a reason for failure? On the contrary, as new revolutionary products tend to not sell as well as it fails to convince mainstream audiences to purchase it. Apple on the other hand is a fast second which implies she comes in quickly, after they notice a good product, and mimics the product. Apple is able to combine many technology to give the user a great experience. She did not come up with the wheel in the iPod (Creative Technologies did that), she did not invent a front camera to chat with people (in the new iPhone 4) and she did not invent the touch screen either. Yet, Apple is associated with these items simple because she can convince consumers to purchase them.
What has this got to do with stocks and shares? With consistent sell-ability of her items, Apple has convinced investors that her company will continue to do well. Hence, this creates much positive sentiments and sky rockets her share prices. So what has this got to do with the firm? With more expensive share prices, Apple can sell new shares at this premium price with many willing buyers of the company's stock. This allows the technological giant to have more money for research and development which, in turn, allows the firm to expand into many more new products. Therefore, Apple's initial successes has help lead her into being a gadget superpower.
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