Gilette had razor blades but basically that was a male product. I did have a few girlfriends with moustaches, but I digress.
Apple has the iPod to Gillette’s razor and as Bob Lefsetz says in a recent post on Apple :
There’s an iPod for every wallet. If you can’t afford a $79 shuffe, then you’re homeless.
Now Apple is further attacking the blade problem. The war’s bigger outcome will be decided by the blade sales.
Apple’s upside in the war is youth and teens. Gilette’s empty hole with razors, is Apple’s biggest market. They are buying everything.
If they just want free clips….The iPhone will have a product in a price range that solves it by next Christmas and they can just hang on YouTube.
If you are an American girl that does not have an iPhone by next Christmas, you might as well have a moustache, because you will be that uncool.
All that aside, it’s the institutions that are driving the stock price.
Here is the institutional dilemma that bodes well for us ‘itty bitty’ shareholders.
There is only on Apple stock float. You can’t buy sympathy stocks. If you buy Synpatics or Cypress or another chipmaker that contributes components, you will wake up one day with a lost customer…Apple.
If you buy Dell , HP or Microsoft as a sympathy play, you do indeed need our sympathy and if you want VMWare for their virtualization, you are entering a giant new war between all the big players that Microsoft could actually win…but who cares.
Until Apple stock gets cloned or the Fed is put in charge of printing certs and options, Apple gets bought on the smallest dips.
Of Course, Apple could also screw up with product design or marketing or something comes along that we don’t see, but with 200 stores going to 1,000 and an army of happy consumers spreading the gospel, the shorts should not hold their breath.
It’s why Apple remains my number 1 position. Sometimes being original does not matter.