$AAPL: Apple AAPL +0.00% closed 3.9% lower for the week but managed to finish with its foot on the $500 mark. The stock has been under pressure on lingering uncertainties over the popularity of iPhone 5 and to some extent, the staying power of the company in the long run. Read: Apple bruised by iPhone’s boom-bust cycle
“Any tech company worth its salt wants to lock users in…. Consumer device users are fickle, leading to the travails of Nintendo, Sony, Motorola, Nokia, and RIM. Apple may be in a better position because it is a multi-sided platform,” said Steven Milunovich at UBS.
“The iPhone isn’t a phone, it is a portable computer that brings consumers and developers together through iOS. The use of iCloud, purchase of apps, and existence of Apple families makes switching inconvenient. The company’s success is creating a new generation of users such that iOS is the new Windows,” he said.