Apple Inc. has created an incredible business, selling the hardware and pounding out cash from recurring payments on its iTunes platform. And, the company is extremely profitable. It earns $45 billion on $215 billion in revenue. Apple has north of $250 billion in cash. In fact, only 60 countries have GDP greater than Apple’s cash hoard. In 2007, it did $3.4 billion in profit on $24.5 billion in sales.
While I think Apple is going to be the first trillion dollar company (by market cap), even if that happens in the next 5 or 10 years, the stock itself is not a good place to have your money. It’s highly unlikely that it’ll pay out that cash as a one time dividend, and unless something changes, I can’t see the company being a $1.5 trillion stock in 5 years. There are other positions for most investors.
There is no way for Apple to continue its historic growth rate and at this point the stock is over priced versus what you can buy elsewhere.