“If last week’s technology earnings bloodbath gave you pause, consider this: What happens if Apple, the world’s most valuable technology company, falters?” Sam Gustin asks for TIME Magazine. “It’s a chilling thought. As the one-year anniversary approaches of the death of Steve Jobs, the visionary and revered executive behind Apple’s most beloved products, tough questions could bubble up about Apple’s future, especially if we see a few more quarters of disappointing earnings results — or weakening iPhone sales growth.”
“Last week, Apple delivered a rare earnings disappointment. The report was notable for weak iPhone sales growth, which Apple tried to explain by citing ‘rumors and speculation’ about a new iPhone that could be leading consumers to hold out for the new model. Apple reported sales of $35 billion, below Wall Street expectations of $37 billion, and said it sold 26 million iPhones, down from 35.1 million in the previous quarter but 28% higher than last year,” Gustin writes. “That result was underwhelming for a company that normally blows away Wall Street expectations.”
Gustin writes, “What if Steve Jobs already introduced the overwhelming balance of Apple’s breakthrough products? After all, during his too-brief, once-in-a-century career, he radically disrupted at least seven industries: personal computing, desktop software, music, mobile phones, publishing, tablet computers, and Hollywood animation, as Jobs biographer Walter Isaacson recently observed on 60 Minutes… Nearly one year after the death of Apple’s iconic co-founder and spiritual leader Steve Jobs, how long Apple can continue its unbelievable run of business performance without him? …As much as I respect him, Tim Cook is not Steve Jobs… a few more quarters of below-expectations results could spook Wall Street. Further weak iPhone sales-growth could obviate the ‘consumers are waiting for the new model’ explanation, and will only cause speculation to increase about Apple’s future.”
Read more in the full article here.
[Thanks to MacDailyNews Readers “Fred Mertz” and “Lynn Weiler” for the heads up.]
MacDailyNews Take: Ah, the lazy, dog days of August, right on schedule.
Let us let you in on a little not-so-secret secret: Sam is sitting on a beach somewhere (if he’s not, he hasn’t learned how to properly do his job – we certainly have sand between our toes as we type this) and he has a deadline. His boss is hounding him. He needs something to fill up a page. So, Sam ignores that the same sort of pause happens before each new iPhone launch, even if the actual unit sales are sometimes occluded by channel fill numbers due to Apple’s rapid expansion into new countries and to new carriers worldwide over the past five years, and lazily settles for rehashing the tired “Tim Cook is no Steve Jobs, so maybe Apple’s in trouble” meme. Then he sends it to his TIME editor and rolls over.
Tim Cook has basically been running Apple Inc. for years. Steve Jobs knew he had limited time on this planet for years. By all reports, Steve Jobs believed Apple Inc. was important to the world and he wanted the company to continue for a very long time after his passing. Beyond the industries listed above, Steve Jobs also disrupted the technology company. Apple is unique. He rebuilt Apple Inc. for the long haul and he personally chose the team of people that’s running it today. If Jobs was a genius (he was) and his utmost priority was Apple Inc. then we’re quite confident that what’s he built hasn’t run aground a mere ten months after he entrusted his life’s work to his handpicked team.
Tim Cook, Jony Ive, Scott Forstall et al. are not mere caretakers. The world needs to wait a little bit more to see what they can really do in the post-Jobs era. One thing’s for sure, the surprises aren’t coming in August.
I wonder how fast the share price will rise prior to the release of iPhone (5). What if Apple releases a larger iPod Touch or a smaller iPad? The price will further increase.
Market is up 200 +
Apple up 7 1/2
and facebook is up a nickel.
THAT says it all.
Apple wouldn’t be where it is today were it not for Tim Cook. Steve Jobs could have never done all that by himself. And he did not. He would have been the first to have told you that had you asked. Life goes on, so does Apple. Maybe better maybe worse but it has nothing to do with Steve Jobs.
And flying has lost it’s lustre since Orville Wright died.
Ahhh…those were the days. Hair blowing while the ground passes a foot below your feet…
Never been the same since. Progress spoils everything.
Tim Cook seems to lack the unbridled enthusiasm and passion that Steve Jobs exuded.
You’re a personal friend and know this for a fact?
It seems obvious enough to me, comparing both men publicly discussing Apple, computing, and emerging technologies.
His Steveness was the most articulate Apple mega-fanboy ever existed, using hyperbole almost constantly (even about other companies).
While this is true, don’t underestimate Tim’s love for Apple.
He is a more cool guy, an incredible smart guy using a bit more understatement and a tiny bit less over the top charisma.
It’s just a different style, but the enthusiasm and passion is pretty much the same. Tim gets up each and every morning at 4-4.30 am. He is total workaholic. Just like Steve.
He is right now just not quite as good with keynotes as Steve was with his Stevenotes. But I think it is getting better and better with each keynote.
I trust Tim and so should you. Steve did it.
I’m not so sure about that. Considering he starts his day at 4AM and regularly has meetings on Sunday night, he must be at least a bit passionate and enthusiastic.
Sure, he doesn’t speak like Steve does, but he is a bit more laid back and deliberate in his speech.
People have to stop expecting Tim to be a clone of Steve. Steve was one of a kind. Different is not necessarily “worse”.
Sadly, I agree…. the last 2 events were boring.. one more and who will care…
Accountants are now in charge… excitement and innovation is disappearing.
Puke, puke, puke!!! So sick of these sensational opportunistic junk articles! No, Apple is not going down the crapper. Steve was one awesome person but his absence does not spell doom. Come in, give it at least 5 years and then start making prediction and speculation! It will take at least that long for his absence to effect real change. AND It’s not like there is another Ballmer running Apple! THAT would warrant an “uh-oh”.
Yeah funny they can’t say more where its deserved about Gates PROVEN failing follow up act – the chair throwing, used car selling, developer monkey jumping, salesman in charge CEO-still-in-training Ballmer T. Joke. Since everyone already knows this though it’s not much of a headline,
Oh no, another Apple death watch. I can’t handle it!
The bloodbath Apple’s stock has already recovered from? Another fscking hack.
This “didn’t meet expectations” BS irritates me to no end. Apple had an astounding quarter last quarter. But because they didn’t meet the numbers some Wall St “expert” pulled out of his ass, we’re to believe that Apple is in trouble? Gustin and TIME should base their opinions on the facts, NOT on speculation.
That is correct! We should listen to these guys!
Seriously! Just look at the returns we’ve reaped by listening to them about Microsoft these past years!???
Now they are saying that Apple might be screwed and I’ve heard rumblings from a few analysts that Surface will put microsoft back on top!
If I were you I’d sell all my AAPL shares and dump the whole lot of your profit on MSFT!
These analysts always know what they are talking about! 😉
The majority of the regular followers on this site could put together a more meaningful and truthful article than this brainless idiot. Jesus wept!!
Time Magazine’s readership declined steadily for many years. All of the writers must be on summer vacation.
What a load of pointless, dishonest garbage. MDN’s take is spot on. The silver lining to these sorts of articles is simply that Apple is important enough these days to make even a completely bogus summer-holiday piece like this one attractive reading. Has Microsoft lost its shine under Balmer? Does anybody care any longer?
…and what if the world ended tomorrow?
Hacks!
I am an Apple fan, and avid user. I see in some areas of Apple the slight tinge of great, not excellent.
Is Apple dying? No.
Is Apple going anywhere soon? No.
However, if someone at Apple doesn’t put a check on the small things going awry, then eventually they add up into big things. It’s not every corporation that had a Steve Jobs to push people to excellence. It wouldn’t be bad for them to continually asking the question, how would Jobs approach this, would he approve this, would he do this. It keeps the passion, excellence, and quality products rolling out the door. And keeps the ethos of Apple going strong for years to come.
MDN take is right on. The Steve Jobs stories will continue regardless of circumstances- his name sells, so they’ll make up stuff, good, bad, insignificant. Interesting how no one else in tech since Jobs and Gates has mass name recognition.
Steve Ballmer is working double time on making a name for himself, it will just be a different kind of ‘reputation’ he earns in the end 🙂
Remember, Steve explicitly asked that people NOT ask the question “What would Steve do?” after he was gone. I agree, however, his unrelenting passion for product excellence will be difficult for others to emulate, since he was the founder, and could get away with firing people on the spot who pissed him off. No one else has that power. But, there’s no question his hand picked team shares his vision for product excellence.
Steve Jobs: Mercurial
Tim Cook: Saturnine
Apple: Stellar
people who posted here seem positive on apple’s future. but unfortunately it won’t. Tim Cook won’t guarantee to grow apple continually as much as Steve did. ‘apple is steve’ is still making sense. without Steve, Apple will slowly fall. people will slowly get tired of its behavior like suing company by patents, infringement in order to eliminate competitors. I never heard that apple publicly donate huge money or did Steve do that? no. it will reflect on market. it’s not just selling products which make company good. for the long term, just like MS, they should do something for public. so far, they didn’t at all. trust me. apple will fall just like 1997. they won’t be lasting for long. there is one reason. unlikely samsung, apple doesn’t have its own manufacture for many parts in order to make mac or idevices. what if samsung will stop supplying parts because lawsuit? of course, apple will make another subcontract with other companies. tell you what. there are no other companies to supply faster, and enough numbers for their product. only samsung can do it. they need to think over this. personally, I don’t like apple. and continually have started to hate nowadays. I like ipad. but I won’t buy it, and decided already to buy google nexus 7 tablet.
WTF has Google done for the public? Besides mine all of our personal information, that is.
Hi Android troll
>people who posted here seem positive on apple’s future. but
>unfortunately it won’t.
Ah, you must have bought the SameSung crystal ball. Unfortunately is lies constantly and destroys evidence.
> ‘apple is steve’ is still making sense.
No it doesn’t. Guess why there is the Apple University?
Guess why Steve repeatedly talked about the team and the Apple DNA. He formed a company and it’s values to his standards. Those standards are immortal.
> people will slowly get tired of its behavior like suing >company by patents,
LOL. That’s what patents are for. What’s the alternative? Let everyone rip-off Apple and do nothing? LOL. In your face.
“Boy have we patented it”. Steve, January 2007. That was a warning.
>infringement in order to eliminate competitors.
That doesn’t even make sense.
>I never heard that apple publicly donate huge money or did >Steve do that? no.
Yes he did. But in privacy. Unlike the attention whore Bill Gates.
But does the fact that you are uninformed means that it never happened? Certainly not.
>it’s not just selling products which make company good. for >the long term, just like MS, they should do something for >public.
What? Make shitty products without a sense for taste and style?
Make a brown iPod?
Should Tim shout “Developers Developers Developers Developer Developers” and throw some chairs around?
> so far, they didn’t at all. trust me.
No I don’t trust you. Not a bit.
>unlikely samsung, apple doesn’t have its own manufacture >for many parts in order to make mac or idevices.
Samsung is a holding and doesn’t produce anything except statistics. Samsung Components produces all the stuff. Samsung Mobile must buy these parts just like Apple. Even from Samsung Components.
There is no advantage whatsoever for ShameSung.
>what if samsung will stop supplying parts because lawsuit?
They can’t. Contracts are contracts. And no sane company would like to loose a billion dollar customer. The law suits only hurt SameDung, not Apple
In addition : APple get source its parts from someone else. Like they do with displays from LG and Sharp.
>there are no other companies to supply faster, and enough
> numbers for their product. only samsung can do it.
LOL.
> they need to think over this. personally, I don’t like apple.
Oh reeeeeallyy?? Nooooo. Wouldn’t have guessed that! What a revelation.
>I like ipad.
No you don’t otherwise you would buy it.
>but I won’t buy it, and decided already to buy google nexus 7 >tablet.
Have fun with that dysfunctional big phone (too tiny to call it a tablet)
IMHO there are no doubts Mr. Jobs was good at extrapolating current hardware capability trends, and mapping possibilities many years ahead of where current ones are/were. I have little doubt that a well calculated course of action is already mapped out. I would say the time to wonder if Apple after Mr. Jobs speculation is an utterly worthless endeavor for at least the next five, ten or maybe even fifeteen years.
This is not a story. The real story is this:
Apple made the largest 3rd quarter profit in the history of the company! But for some reason all the reports read as if Apple had a lost this past quarter.
Apple was off Wall Streets expectations by 2 billion? I will bank on Apple’s growth of $35 billion over Wall Street’s guesses of $37 billion any day!
When Wall Street starts making products that make money, than maybe I will listen to them.
Thanks Wall Street for all the money you made us in 2008, 2009, 2010, 2011…
Apple was also above their own guidance. The only thing they missed was the hyperbolic fantasy numbers from some ANALyst (caps indicate source of numbers).
As usual, both narratives are wrong. Questioning Apple’s financial success is ridiculous because the results are the best out there. Apple only plays in profitable markets, they don’t pander to the masses.
That being said, perceptions are powerful. While fanboys are wetting themselves over Apple TV vaporware, which has no chance in hell; or what the next ITERATION of the iPhone might be, the reality is that it’s going to be an incremental improvement. No new version of an existing product is going to dramatically expand Apple’s market share the way the first one did. Apple has matured and, yes, slowed their product releases. That hasn’t gone unnoticed by some of us.
I hope Apple releases new hardware into new international markets, but only a fool would predict that Apple will continue the exceptional rise that Steve repeatedly ushered in with the iMac, iPod, iPhone, and iPad. Whatever comes next is sure taking a looooong time to get out the gate.
And don’t get me started about having @#$%^&&* clouds and “social media integration” pushed down user’s throats by BOTH Apple and Microsoft. This represents bloat and distraction, not progress.
Another Time magazine shit journalist, like all of them. Its a liberal laptop shitrag for Obama.
I agree, the article is absurd if profits are Apple’s primary motivation. However, I have great concern that Apple will forsake the professional market and release a Mac Pro, already way overdue, that will not compete with Windows workstations at the high end. If they don’t, you will see a rather massive migration away from the Mac in the by video editors, animators, and other power users. Mac developers need them as well. Anyone that needs massive power in one box. There is a huge halo effect from these users, even if the numbers are relatively small, they are still profitable for Apple. It is not a money losing market. As a Mac professional for since the beginning, this saddens me greatly. Not sure Tim gets the urgency of this. Many of us need more than iPhones. iMacs. and MacBook Pro Retinas, as wonderful as they are for the general market.
Tim Cook stated the Pro desktop users will be addressed next year.
I’m aware of that. This is his quote: “Our pro customers are really important to us…don’t worry as we’re working on something really great for later next year.” That is quite a delay when the last update was two years ago! The processors and GPU’s are obviously two years out of date as well, three years or more by the time the update comes out. It also says “something”, not necessarily a tower based design like the classic Mac Pro that can use the highest end graphics cards, multiple HD’s or SSD’s, and very large amounts of RAM. A little too vague and a lot too late. But I’m keeping my hopes up they will see the light. Thunderbolt doesn’t make up for all of the benefits of an integrated single unit.
I agree, the article is absurd if profits are Apple’s primary motivation. However, I have great concern that Apple will forsake the professional market and release a Mac Pro, already way overdue, that will not compete with Windows workstations at the high end. If they don’t, you will see a rather massive migration away from the Mac by video editors, animators, and other power users. Mac developers need them as well. Anyone that needs massive power in one box. There is a huge halo effect from these users, even if the numbers are relatively small, they are still profitable for Apple. It is not a money losing market. As a Mac professional for since the beginning, this saddens me greatly. Not sure Tim gets the urgency of this. Many of us need more than iPhones. iMacs. and MacBook Pro Retinas, as wonderful as they are for the general market.
Sorry for the double post. Wish you could edit comments here!
Agree about pro users. Apple needs to rule this world. Push the envelope. Make great programs.. Apps They have the cash.. Kids aspire to greatness. And for what? to have to switch to a windows pc when they get a job? My god if the business world is only ten percent penetrated, what is Apple waiting for? Who do you think has huge budgets? Windows should not be the solution to anything.
Easy one word answer to the headline.
No.
Of course Cook is not Jobs and that was determined at birth! WTF.