Apple is so big, Citigroup is triple-teaming it while others question if Apple should be broken up

“How many analysts does it take to make a ‘buy’ call on Apple? The answer, at least according to Citigroup, is three,” John Melloy reports for CNBC.

“Three analysts will tag team the world’s largest company with one covering the software side, another tackling the hardware side and yet another person evaluating its semiconductor supply chain, according a note from the firm Monday,” Melloy reports. “‘Citi is taking a unique team approach to Apple coverage,’ states the firm’s bullish note. ‘This reflects Apple’s broad impact to the technology supply chain and allows us to uniquely follow the company from several industry angles.'”

Melloy reports, “Traders questioned the move by the bank with some saying it was just a marketing ploy but not really needed. Others wondered if the move underscores just how unwieldy evaluating — and managing — a company as enormous as Apple has become. ‘Apple’s revenue and cash holdings are bigger than some small countries’,’ said David Greenberg of Greenberg Capital. ‘At this point, no one person could run the entire company, and dividing the company into two to three different ones based on products might be an idea whose time has come.'”

Read more in the full article here.

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

35 Comments

  1. Wow, has there ever been a worse idea… Ever?

    A company who promotes that to make the whole widget is what makes products truly great, should break itself up as a solution to a problem that doesn’t even exist? Just as they are finally reaping the rewards of their conviction?

    1. You are going to see a lot of this idea from Wall Street, because the underwriting fees from such a plan (which would entail IPOs for the spun off units) would run into the billions of dollars.

      Keep in mind that Wall Street bonuses are down again this year and the people working there have to justify their jobs and find any way possible to create money for themselves. It isn’t important to them if it makes business or financial sense to the shareholders or the companies involved

  2. umm…. yeah. Let’s break up the most focused company on the planet so the divisions no longer talk to each other… because as it is, Apple is posting some pretty shitty numbers compared to say, HP, Dell, MS….
    Where the hell do these idiots come from???

  3. As the number and diversity of products increases maintaining control of resources, communication, and planning becomes difficult. However, Apple seems to have developed the culture and systems needed to do this. All that is needed is having the right people in leadership positions committed to the vision, dedicated to the purpose, and able to inspire others.

  4. the only thing BIG about Apple are its cash holdings, revenues and profits. Are far as product lines and employees, Apple is a medium sized company, some may even classify it as small, relatively speaking. These folks are ‘tards (this is NOT the “r” word, puh-leeeze).

  5. Do you know how the analysts cover Amazon? They just go and ask Jeff Bezos how his company is doing. If he says it’s doing fine, they upgrade the target price. They believe him at his word. They never ask him about actual sales numbers, though. That’s a well-kept company secret that only Jeff himself knows. It would probably frighten the average investor to death to hear the actual numbers spoken out loud.

    With Apple, they need a dozen analysts going through trashbins, standing outside of retail stores, paying money to component supplier tipsters and going so far as to just making up any sorts of numbers for information they can’t get. I swear, why is it so important to go over Apple’s numbers with a microscope? How does that possibly help shareholders? 50+ pro and independent analysts to cover one company with a handful of products. And the sad thing is, most of them are usually off by a wide margin. They might as well just use the guidance Apple gives them. Apple analysis has become an oxymoron.

    Today, Andy Hargreaves said that Apple needs another $100 billion product just to drive growth. It’s as though China iPhone and iPad sales aren’t going to help Apple’s revenue at all. Yet, somehow, Google has managed to get by with just one search engine all these years but Apple has come up against a wall with the share price below $600. There never appears to be any calm seas ahead for Apple. Just constant storm clouds on the horizon.

  6. Is this when people try to justify their employment by sitting around with nothing better to do then to think up asinine suggestions juxtapose to their employed worth?

  7. It’s always funny when some one can’t do something so they assume no one else in the world can do it either. Citigroup and/or this blogger can’t figure out it so NO ONE can possibly do it. lol

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