“Walk round the shopping centre near where I live, and one shop is always heaving. It’s the same in London’s West End. Others are seeing OK business; one is guaranteed to be packed,” Chris Blackhurst writes for The Independent. “It’s the Apple Store. Based on this alone, I can see why Apple is smashing all profit records. Apple reported the biggest quarterly profit ever made. The US technology giant recorded a surplus of $18bn (£11.8bn) in the last three months, topping the $15.9bn made by the oil major ExxonMobil in the second quarter of 2012.”
“In their letters to Father Christmas, the younger ones’ top requests were all for Apple products. When the Apple Watch is launched in April, the clamour for that will be deafening,” Blackhurst writes. “No wonder Apple refers to the help counter in its stores as ‘the Genius Bar.’ Genius is not the word for a company that now enjoys revenues bigger than those of many countries (Greece is the latest to be overtaken).”
MacDailyNews Take: The rest of the article quickly devolves into confused pap lamenting, among other things, why old devices can’t work with the newest OSes and software, as if Blackhurst’s original iPad, for example, is supposed to just grow its own gyroscope or something.
“There should be caution here for Apple and its CEO, Tim Cook. Beating all-comers is fine, but history suggests there is only one way ahead after that – and it’s downward,” Blackhurst writes. “Why, for instance, aim for a profit margin of 40 per cent. Won’t a lesser number do? What’s Apple going to do with all that cash? At present, it’s simply building and building. To what end, is not clear.”
Full article here.
MacDailyNews Take: Ah, Apple record earnings, yet again. They never fail to lure those who lack basic understanding of Apple Inc. (or capitalism in general) to write about Apple Inc (and capitalism in general).
Start producing original content for Apple TV.
I enjoy House of Cards, Game of Thrones and Hannibal. I would like to see Apple create some good, addictive content.
You need to invest in Disney then, I did many years ago.
Seriously, you want a tech company who creates computers and electronic devices to start producing tv shows and movies?? Umm, No.
I think he’s trying to say “back” original content, not necessarily create it. If you think about, most of the people that work in that industry are usually Apple users anyway. It’s not a huge stretch.
Music, movies, and TV content… Apple helps produce a lot of this already through the use of their products.
It is a stretch. Apple is a tech company, not an entertainment content backing company.
Not to mention, apple can’t legally put their name on any musical or video content as per their agreement with the Beatles Apple corps
Apparently one seemingly unlikely content producer, Amazon, seems to be gaining some traction.
Not suggesting Apple do so, though, just noting… …unless they see a particular and complementary opening….
E.g., content available first and foremost from their store could add to “stickiness” for owners of Apple hardware- though I personally can’t say I’m too pleased about where “faux a la carte” is leading us.
That is, having to have a slew of subs to NetFlix, Amazon, Dish Sling, HBO Go, etc. to get various shows you want. Could end up being actually more expensive and complicated to navigate than cable.
Maybe “create” is the wrong word to use.
How about “buy” original content for the Apple TV.
Why not sell at a profit margin of 5% or 10%. That would wipe out Android. Make just as much money.
Problem of course is that they would have double the number of Apple stores, but is that really a problem.
I don’t understand the concept of “the better the product, the more obligation to provide it cheaply”. This seems to be the opposite of capitalism and guarantees mediocrity in the long term.
Your comment is idiotic, and indicative of a world view that is incompatible with creating anything great, ever.
I stopped reading when the word “heaving” was not preceded by “busom”.
Kate Upton?
it’s gonna lead to MO MONEY
Listening to Blackhurst’s business advice is a sure way to ensure that downward trend he talks about.
This focus on looking for massive upside from failed and rebuilding companies and unproven IPOs while expecting only downside from a huge, solid company that produces the most desired products in the world is just plain nuts.
This attitude would have led you to bet against Michael Jordan in 1991. He’s the very best in the world…it is all downhill for him now.
Well said.
“The rest of the article quickly devolves into confused pap lamenting, among other things, why old devices can’t work with the newest OSes and software, as if Blackhurst’s original iPad, for example, is supposed to just grow its own gyroscope or something.”
This is plain ignorance on your part MDN, he had an iPod classic with the wheel, there is zero reason it should be shut off from working with Yosemite, this was bad form, lazy and inexcusable on Apple’s part.
The dude is suffering from depression i guess !
Apple will buy up AI and Business Securities from IBM and Microsoft. — Yep I said Microsloth.