“Undoubtedly, Apple is distinguished for the iPhone,” Pantho Investments writes for Seekigng Alpha. “But since 2014, Apple has also been working on an electric car via Project Titan. And just yesterday, WSJ reported that Apple has set aside $1 billion to produce original content, essentially competing with the likes of Netflix and Amazon.”

“Considering that Apple’s core competency has historically been electronic hardware and easy-to-use user interfaces, are Apple’s ventures into entertainment production, electric vehicles, and complex AI starting to become a case of diworseification?” Pantho Investments wonders. “To those unfamiliar with the term, investing legend Peter Lynch wrote about the concept of diworseification in his 1989 book, One Up On Wall Street.”

An excerpt from page 148:

Instead of buying back shares or raising dividends, profitable companies often prefer to blow the money on foolish acquisitions. The dedicated diworseifier seeks out merchandise that is (1) overpriced, and (2) completely beyond his or her realm of understanding. This ensures that losses will be maximized.

Every second decade the corporations seem to alternate between rampant diworseification (when billions are spent on exciting acquisitions) and rampant restructuring (when those no-longer-exciting acquisitions are sold off for less than the original purchase price).

Read more in the full article here.

MacDailyNews Take: Is Apple diworseifying?


If anything, Apple is late to the idea of developing compelling original content. Of course, Apple has the money to buy up the entire entertainment industry, so being a bit, or even a lot, late won’t hurt them in the long run. People constantly underestimate Apple. That is a mistake. People also cannot seem to wrap their heads around Apple’s considerable resources. They are, to say the least, extensive. Apple can do whatever they want. If they want to buy A-list Hollywood, they can buy A-list Hollywood – and B-list, C-List, D-List…

Ditto for the “car” industry. It’s not outside of Apple’s core competency as vehicles today are really rolling computers and will only become more technical.

Hollywood, Apple are said to mull feature film rental plan, defying theaters – August 18, 2017
Apple blocks Apple Pay support on sites selling white nationalist apparel – August 17, 2017
Apple rejects game featuring ‘objectionable’ Pepe The Frog cartoon – June 12, 2017
Apple App Store rejects pro-Trump ‘Build the Wall’ game over ‘Pepe The Frog’ cartoon – October 21, 2016
Apple App Store rejects satirical Hillary Clinton game, despite offering dozens of anti-Trump games – July 27, 2016
In wake of London stabbing rampage, will Apple replace their knife emoji with a plastic spork? – August 4, 2016
Open Thread: Should Apple code their OSes to block video games that glorify guns and murder? – August 3, 2016
Apple jumps the shark by removing the handgun emoji; Gun owners might want to reconsider buying Apple’s products – August 3, 2016
Apple removes handgun emoji, replaces it with a squirt gun – August 1, 2016
Apple’s politics may be hurting its brand – June 29, 2016
Apple quashes rifle Emoji – June 20, 2016

[Thanks to MacDailyNews Reader “Phil” for the heads up.]