Tuesday’s ETF to Watch: QQQQ
Tuesday, July 20th, 2010ETF Database submits:
With markets encountering a rough patch and the consumer confidence index plunging, many investors have stayed away from technology and consumer discretionary names in order to avoid some of the volatility as consumers continue to save instead of spend. Despite this trend, one company has managed to find demand for its products no matter what challenges the economy is facing: Apple (AAPL). Once almost entirely dependent on sales of Mac computers and music through its iTunes platform, the technology giant has now come to dominate the smartphone market and the tablet computer segment as well. In fact, according to stock analysis at Trefis, Mac computers and iTunes make up less than 20% of their price target for AAPL, while iPhones and iPads combine to make up close to 55%.
These two products, the iPhone and the iPad, have dominated the headlines over the past quarter but for very different reasons. The iPad has been a big success, thus far selling over 3 million units in under 80 days and thoroughly crushing most initial estimates of analysts [also see Three Tech ETFs In Focus As Apple Releases iPad]. The iPhone 4 has also done well in its release, but this has been overshadowed by an antenna problem that has stolen the spotlight from an otherwise popular product (it has sold over 3 million units since the launch).
