Jason Schwarz: Wall Street is wrong about Tim Cook’s Apple

“It’s time to set the Tim Cook legacy straight. I’ll focus my comments in response to the recent critiques of Tim Cook that suggest Cook’s Apple will never be able to recapture the magic of the Steve Jobs era,” Jason Schwarz writes for Seeking Alpha. “Even Andy Zaky, in his $2000 price target research report, noted that ‘2014 is the golden age of Apple and the peak growth year. After 2015, growth will stall and Apple will become a mature company-at least for this era.'”

“All those who are forecasting an end to Apple’s run of innovation are missing a key point,” Schwarz writes. “Consensus on Wall Street believes that Steve Jobs innovated the iPod/iPhone/iPad trifecta and that he played a role in developing the upcoming interface for iTV therefore as soon as these influenced products mature it will mark the end of Apple’s growth story.”

Schwarz writes, “I strongly disagree. To me, the analysts are too focused on the hardware and too consumed with picking apart the personalities who are credited with each product. If Apple’s secret sauce was hardware then the end of its dominance would be imminent. When analyzing the losers in the mp3/smartphone/tablet wars it becomes clear that their failure had little to do with hardware but had everything to do with the software platform. iPod won its war because of iTunes. iPhone crushed Palm and RIMM because of the App Store. iPad is the same story. The foundation of Apple is built upon the App Store. Tim Cook understands this and is ready to leverage it for the next twenty years.”

Much more in the full article – highly recommended – here.

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

25 Comments

    1. … WILL go on indefinitely, there is no real way to predict when or where it will strike. Or, if it will strike when or where the innovator is unable to take advantage of it. Apple struck first with the WIMP construct only to see MSFT take advantage of it. For example. Still … Jobs wanted Cook there for a reason!

  1. “It’s time to set the Tim Cook legacy straight.”

    …because if there’s one thing we really need set straight RIGHT NOW, it’s Tim Cook’s legacy.

  2. I like the comment that poster Zeke made about Tim Cook, in an earlier MDN story link, on the investment company Forrester downplaying Apple’s strength: that Steve Jobs was the right man for Apple when it was a struggling, marginal company, until he succeeded in bringing it to prominence. But now that it is an Industry Titan (with the rest of the business and investment world apparently in denial), new talents are ready and positioned to lead the current-day Apple forward, such as Messrs. Forestall and Cook.

    One of the Public Services that this website does, and continues to do, is to keep pointing out the misinformation that comes out about Apple, and the mediocre responses from companies and investors that clearly shows most people don’t “Get It” about Apple (or to slavishly copy it without understanding why). Society should be championing Apple’s success, instead of gainsaying it; and to use it as an example to inspire people to build their own unique vision.

    Forrester CEO: Apple won’t be a ‘great company’ in five years, Tim Cook a ‘mismatch’

  3. Very interesting view of the future of apps everywhere. Funny how the article says SJ’s greatest gift was the app store, when reportedly, he was initially against the idea.

    Glad that people, including Steve, can change their minds when faced with a preponderance of evidence.

    With hardware simply being a thin client for apps, the sky’s the limit!

  4. Apple is perceived as a global juggernaut with money in the bank, great products in the pipeline and a loyal fan base. The threat, in my opinion, will be lawyers, special interest groups and bureaucrats throughout the world seeking to both constrain growth and profit from Apple’s success. Tim Cook’s mission is to steer Apple through these hazardous international waters. The company’s culture of innovation should take care of the rest. We’ll see.

    1. Don’t forget meddling investors in that list of hazards needing to be navigated. They’ve already got MDN loudly banging the drum about Apple’s judgment (and Tim Cook specifically, for some bizarre reason) when it comes to doing business with Samsung.

        1. The lingering fetishization of Steve Jobs (driving antipathy for his hand-picked successor) from certain investors will have a very corrosive effect on Apple’s ability to lead decisively.

          1. It’s far too early in the game to make far-ranging generalizations on Apple’s future. I have confidence in management. I’ll just kick back and see how things play out.

  5. Vision etc. are good assets to have. But don’t underestimate the power of “no”. L’enfant terrible reputation particularly helps when making toughest of deals and negotiations, betting the firm even on seemingly crazy tangents (from the outside) while staring down a world full of doubters and opposition.

    Right now, i.e., Foxconn is getting away with certain upcoming product info leak. There has been plenty other leaks from Apple of late. Some ship leaks from the top. Apple needs to plug the holes ASAP.

    Tim Cook can be the most bad ass master strategist and channel maintaining wizard for Apple (during and post-Jobs), but to be an effective leader of the world’s most innovative, influential and valuable company in the post-Jobs era, he needs a loud and strong “no” all his own delivered to Foxconn chief. Loud enough for the rest to hear once and for all that he has arrived.

    Until then, who can blame the street, really? The investors are rightly concerned for their money with a mild mannered behind the scenes guy, while their IP is getting ripped off right and left. Legal courses are good, but there are times when thermonuclear makes a clearer and more effective no-nonsense “no!”

    Go Apple!

    1. I’m fascinated by the way people who post here somehow know exactly what Tim Cook is or isn’t doing behind the scenes.

      What part of “people need to invent their own stuff” and “it’s important that Apple not become the developer for the world” is so hard to understand? Hardly sounds “mild mannered”.

      1. One of Apple’s most valuable manufacturing partner has leaked and confirmed an important, upcoming and strategic product months in advance. This is serious. If you can’t seal this leak, then that basically allows this and other powerful partners to grow bolder by day; not to mention the disease also spreads to other parts including inside Apple.

        Warning with “people need to invent their own stuff” etc. is only as good as the intent and ability to carry out the “else” part. I’m not suggesting Tim Cook is incapable, I just don’t know until he takes a decisive and drastic action. Until then, you can’t blame the doubters, just like doubters can’t blame your faith. It’s a guessing game. Mr. Cook has things to prove still.

          1. “According to China’s leading newspaper ChinaDaily, Gou explicitly accepted during his speech that Foxconn is making preparations in collaboration with Apple to launch a new HDTV set in market. He also mentioned that the production of this HDTV which he named as iTV has yet to begin. Foxconn’s recent 50/50 joint venture factory with Sharp in Japan is one of the preparations made for the new device, Gou added.”

            Hon Hai Chairman Terry Gou spills the beans: Foxconn to assemble Apple HDTV set

            1. Once when RIAA and many delusional artists/critics started demanding more from iTunes, which was a much smaller cut than what the record labels were taking, Steve Jobs’ Apple publicly announced they’d close the store than give in to the unreasonable demand.
              No empty threats there, guess who blinked first.
              That’s just one example out of many. Hope that helps.

            2. There is no better example of the brain dead stupidity of contemporary Wall Street than the members of the RIAA.

              It’s like watching a kid’s game of ‘Don’t Hit Yourself!’ Except it’s not kids playing and no body forcing these companies to hit themselves. It is entirely self-inflicted, much like watching the irrational behavior of a village idiot.

  6. The difference between Tim Cook and Wall Street is that he’s “An Officer and A Gentleman”
    with brains to boot. Steve Jobs didn’t select him on a whim. I believe he’s honest too.

  7. Wall Street = Self-Destructive
    Wall Street = Full Of Blithering Idiots
    Wall Street = Unreliable
    Wall Street = No expert at anything, especially business.

    Required: The next revolution in the finance game. The first step of that revolution = UP AGAINST THE WALL STREET WALL DUMB F*CKS!

    This will be followed by a very long and loud 499 gun salute aimed at 499 hearts.

    The 500th company will not be attending as they will be busy creating new customer friendly wonders. That 500th company is Apple.

  8. iPhone crushed Palm and RIMM

    and Nokia
    and LG
    and Sony Ericsson
    and Microsoft
    and Google Nexus
    and HP
    and Motorola
    and HTC
    and Acer
    and Alcatel, Bluelans, NEC, Cherry, CSL, Dell, Garmin, GeeksPhone, General Mobile, Highscreen, HKC, Huawei, INQ, i-Mobile, Kyocera/Sanyo, Lenovo, Meizu, myPhone, Nexian, Ouku, Pantech, Qigi, Vibo, Videocon, ZTE,
    and the majority of Samsung phones.

    Thank you Apple.

    It’s time for some real competition with Apple!

  9. Yes and no. The iPod dominated not only because of iTunes, but also because of the ease of use of the iPod itself. The iPhone also was embraced for its own ease of use before the App Store even existed.

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