Apple: What’s eating America’s Favorite Tech Company?

“Since last September, Apple’s stock price has declined by 40%, wiping out hundreds of billions in shareholder value and costing the tech giant the title of world’s largest firm by market capitalization, a distinction that once again belongs to energy giant Exxon Mobil,” Sam Gustin writes for TIME Magazine. “Last week, Apple shares fell below $400 for the first time since December 2011 after one of its key chip suppliers delivered a downbeat forecast.”

“Apple delivered its quarterly earnings report yesterday after the stock market closed, and for the company faithful, there wasn’t much to cheer; Apple shares ended flat in after hours trading. But let’s be clear: Apple’s recent stock swoon is, in part, a function of the company’s own astounding success over the last few years,” Gustin writes. “On Tuesday, Apple reported earnings results that would cause any other firm to jump for joy: It generated nearly $100 billion in sales over the last two quarters, and now makes more profit each quarter than arch-rival Google generates in revenue.”

Gustin writes, “It’s difficult to imagine what Tim Cook is going through right now. His mentor, Jobs, is widely considered to be a visionary on par with the greatest business leaders in American corporate history. Steve Jobs is irreplaceable, and Cook, a humble and brilliant operational wizard, knows that. The question is whether Cook can guide the company into the next phase of the company’s existence. He’s facing a host of challenges heading into the next quarter. Slowing growth, reduced margins, increasing competition. Apple remains the most profitable tech company in the world, but with no new products in sight, it could be a very long summer for Apple fans.

Read more in the full article here.

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17 Comments

    1. Apple’s margins last year were an aberration. Margins have historically been around 38%, just as they will be next quarter. Earnings per share are down due to new product development, not due to sales decreases or price reductions. These “journalists” have to work very hard to manufacture a case against Apple.

  1. That’s to suggest that Jobs didn’t have a vision for his company when he’s gone.

    What’s eating America’s favourite tech company?
    Impatient non-believers.

    1. but but but but, it not released yesterday, and today, and tomorrow, and the day after that, and etc ad-infinitum. Haven’t you heard, according to the WS shills the analcysts, unless Apple releases new cheap phones that are 3rd world affordable, with 80%+ margins every day, they are doomed.

      While I’m being sarcastic, the sad truth is that the analcysts and their ridiculous demands can actually crush APPL. Thank goodness there is alot of cash on hand for Apple, so it will live to dance and spit on the graves of the WS illuminati

  2. I get a laugh out of the phrase “Apple faces increased competition”. In 2007 Apple was not in the phone space and proceeded to take out Nokia, Rimm and Microsoft. Does anyone really think that Apple is afraid to compete with those tasteless copiers from Korea?

    1. I personally prefer the phrase ‘Apple faces increased parasitism‘.

      Clearly the Wall Street biznizz bozoids can’t distinguish:
      • A technician from a tapeworm.
      • A genius from Giardia.
      • A craftsman from a crab louse.
      • Creativity from cancer.

  3. Tim Cook annoucning that there will be new products “in the fall” means no new products for another six months. There haven’t been any new products or anything to get excited about, anyway, since October, already six months ago. So Apple fans just have to wait for a once a year hit to satisfy their fix. Hmmm. I don’t think the people nostalgiac for the years when Jobs would walk out every few months with something interesting are being impatient. It’s Apple that’s become a drag. Even the iPhone 5, as good as it is, was merely a marginal upgrade from the 4S. It’s as if just making things thinner is the only thing they care about. There’s very little ‘wow” factor going on for awhile now. And now Cook tells us to just wait and wait wait and wait but we all know it’s just going to be thinner phones and pads with more memory. Ho hum. What we all lived through from the iPod up thru the iPad was a once in a generation ride and it won’t happen again in our lifetimes. Such is the burden Apple and us fans have to come to terms with. These guys getting nuts over a possible TV are sad, really. The thrill is gone, but at least they’re making some good products. It’d be nice to be able to get excited over things but the plan at Apple is obviously just to stay the course and ride out the past as long as possible. The strange thing is Cook still saying things like “just wait!”. He should stop doing that. It makes the company’s current lineup look creaky.

    1. Cook said that there will be new products in the fall, but that doesn’t mean that there can’t also be new or updated products before that.

      It’s not in Apple’s interest for people to be able to accurately predict product launches, demand dries up in anticipation of the new model. It’s much better to surprise the market by launching new products at short notice and at irregular intervals, which also has the side effect of disrupting the schedules of Apple’s rivals too.

    2. “I don’t think the people nostalgiac for the years when Jobs would walk out every few months with something interesting are being impatient.”

      No, they are being idiots. The majority of these “interesting” somethings were updates to existing products and feature additions to software. iPod 2001. iPhone 2007. iPad 2010. Everything in the interim was iterative. Apple isn’t going to hold a press event for an updated iPhone or iPad anymore. OS announcements will be where they should be: WWDC.

  4. Nothing is eating Apple. The problem is with the chowderheads of Wall Street who can’t distinguish between invention and innovation; who have defined the term innovation with the definition of invention!

  5. So all this ‘Apple Bear’ analyst bullshit boils down to being the product of:

    THE CULT OF PERSONALITY

    Steve Job’s personality, to be specific. Golly, I guess they won’t be happy until he’s been cloned and reinstated as CEO. It could happen! 😉

  6. “But let’s be clear: Apple’s recent stock swoon is, in part, a function of the company’s own astounding success over the last few years,” Gustin writes. “On Tuesday, Apple reported earnings results that would cause any other firm to jump for joy: It generated nearly $100 billion in sales over the last two quarters, and now makes more profit each quarter than arch-rival Google generates in revenue.

    See? If you look hard enough, even the biggest load of bull can yield a moment of truth.

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