Analyst Projects Apple Stock to Plummet Due to Android

According to analyst Ed Zabitsky for Toronto-based ECI Research, Apple’s stocks will inevitably fall to around the $270 mark despite reaching all-time highs over the past few weeks. The success of Apple’s shares is being fueled by the company’s record-breaking financial results in the past quarter, the launch of iBooks textbooks at an educational event in New York City, and even the launch of the iPhone 4S dating back to early October. So, why does this one analyst believe that Apple’s stocks are going to plummet? The answer: Android…

As reported by Daring Fireball, Zabitsky believes that Apple will decline because Google’s fourth major update to the Android operating system, called “Ice Cream Sandwich,” is on par with Apple’s own iOS mobile platform. He also cites the release of the iPhone 4S as “skewing” the results of the financial results for the past quarter. That’s not Zabitsky’s only reason, however, as he goes on:

A bigger reason for Zabitsky’s stance is his belief that HTML 5 and 4G technologies “will bring the advent of the network-centric mobile Internet” which will “mean the end of the closed app ecosystem” of the type that Apple provides. He notes how ESPN is using HTML 5 delivery to establish a direct relationship with customers that does not go through wireless carriers or device makers.

The interesting thing about Zabitsky’s claims is that Google’s “Ice Cream Sandwich” update was released over three months ago, and has yet to put a dent into Apple’s stock. In fact, Apple shares (NASDAQ:AAPL) have only grown stronger since that time. What do you think? Is the latest release of the Android operating system really enough to hinder Apple’s strong performance?

[WSJ via Daring Fireball]

Post a response / What do you think?