Sept. 11 - Apple stock is sinking after it debuted two new phones- and did not announce a deal with China Mobile- but there are ways Apple could win back investors. Bobbi Rebell reports.
Apple's stock is in dire need of a recharge. Formerly energized shares have powered down- losing about a third of its value in the last year. So how can Apple get charged up again? S&P Capital IQ's Scott Kessler has a buy on the stock- and a to do list: SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "First they need to sell a lot of these new phones that they just announced. Secondly I think they need to execute on the iOS 7 upgrade which is forthcoming. And then three, I think people really want to see some new iPad product including an iPad mini with retina display." REPORTER BRIDGE: BOBBI REBELL, REUTERS REPORTER (ENGLISH) SAYING: But he adds, refreshes aren't enough- they need to finally open up new categories- like an iWatch. Wall Street also responds well to cold hard cash: SOUNDBITE: SCOTT KESSLER, EQUITY ANALYST, S&P CAPITAL IQ (ENGLISH) SAYING: "The reality is that even though they have been buying back stock and paying dividends they have approaching $150 billion dollars in cash and investments. We think that is a state of overcapitalization and one that Carl Icahn and others have identified." They should also think like the high-end auto dealers-sell more new stuff by getting your best customers to trade in and trade up says Allianz Global Investors' Steven Berexa: SOUNDBITE: STEVEN BEREXA, GLOBAL HEAD OF RESEARCH, ALLIANZ GLOBAL INVESTORS (ENGLISH) SAYING: "The loyalists continue to use their old phones. But if Apple is offering them $200 or more to give their old phone in rather than leave it in a sock drawer I think we actually have much better chance of a good upgrade cycle than many expect." And finally- get that deal done with China Mobile. It could plug in some 750 million wireless subscribers to the Apple family.