With concerns regarding a slowdown in orders for components related to the iPad, the release of Amazon’s (AMZN) Kindle Fire tablet, the passing of legendary Apple (AAPL) icon Steve Jobs, and general market malaise, Apple’s stock has come under pressure as of late. Though we note that these headline items have raised some concerns among the investment community, we maintain that Apple represents one of the most compelling valuation plays.
Today’s news regarding preorders for the firm’s new iPhone 4S reinforce our valuation thesis on the company and have sent the shares soaring again. According to the Wall Street Journal, Apple witnessed roughly a 67% increase in pre-orders from the release of the now-legacy iPhone 4, assuaging concerns that the consumer is less than impressed with the upgraded version. Specifically, the journal reported that the electronics giant sold more than one million copies of the iPhone 4S in a single day, a staggering pace that has broken company records for any new product launch. We think the iPhone 4S, which sports a faster processor and upgraded camera, will continue to stand out versus other handsets, even those using Google’s (GOOG) Android system. We continue to hold a large position of Apple in our Best Ideas Newsletter.