Is Apple Inc. (AAPL) Destined for a Lost Decade?

However, if Apple can just hold the line and simply sustain its current market share through 2016, it would mean that Apple will increase its iDevice volume by more than 70% from the end of 2012. In other words, the power of compounding could have profound effects of Apple’s business. It wouldn’t matter how un-revolutionary Apple devices are perceived to be because that sort of growth would almost guarantee that its share price would reach new heights. Perhaps investors have their doubts about this possibility?

Money on the table
Let’s face it: Apple Inc. (NASDAQ:AAPL) is leaving serious money on the table because it hasn’t specifically released a product for emerging-market opportunities. On a worldwide basis, smartphones only represent 25% of all mobile phones, which suggests that emerging markets remain a tremendous growth opportunity in the years to come. If or when Apple decides to address this business opportunity, it would likely give a vote of confidence to shareholders that the company is tapping new avenues of growth.

Mr. Softy, version 2.0
Back in the heydays, Microsoft Corporation (NASDAQ:MSFT) was the ultimate high-flyer. That was well over 10 years ago, and to this day, shares haven’t even come close to those levels. At that time, Microsoft’s P/E hovered around the 80 level, a valuation that could only be justified during the exuberance of the dot-com era. When Apple hit its all-time high of $705.07 back in September, its P/E sat around 16.5, a number far from exuberant. However, the exuberance wasn’t based on valuation, it was based on investor expectations, which largely believed that Apple, the most revolutionary company on the planet, could grow indefinitely. Given Apple’s legacy, it’s not surprising for investors to get carried away with this idea, only to be disappointed when reality set in.

Will Apple’s legacy continue getting in the way of an excellent company that’s has a high chance of being undervalued? Could it bear enough weight to keep a lid on Apple’s share appreciation over the next decade?

The article Is Apple Destined for a Lost Decade? originally appeared on Fool.com.

Fool contributor Steve Heller owns shares of Apple and Google. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple, Google, and Microsoft.

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