“Bill Shope was recruited from Credit Suisse to replace David Bailey, who had downgraded Goldman’s rating for Apple (AAPL) from ‘buy’ to ‘neutral’ in Dec. 2008 and kept it there for sixteen months while Apple’s shares climbed 150%,” Philip Elmer-DeWitt reports for Fortune.
“Shope seems to have a deeper understanding of what makes the company tick, and he spends much of his long report talking about Apple’s growing content and software ecosystem — how it fuels the company’s revenue growth, how it opens up new markets, how it creates ‘switching costs’ that keeps Apple customers loyal, and what it means for Steve Jobs’ succession,” P.E.D. reports.
The compnay “achieved a major milestone with the 2003 launch of the iTunes music store,” P.E.D. reports. “Apple’s revenues have grown nearly three times faster than its operating expenses. The bang it gets for its R&D expenses is even more striking. By leveraging third-party developers and content providers as a source of value for its software ecosystem, it’s been able grow revenues seven times faster than operating system R&D costs.”
Much more in the full article here.
[Thanks to MacDailyNews Reader “Dan K.” for the heads up.]