Pressure builds on Apple to make a move

“Here’s what Apple told investors about its business Tuesday: Margins, revenues, and profits in the next quarter all will be worse than investors had expected,” Adam Lashinsky writes for Fortune. “Here’s what Apple didn’t address Wednesday: Specific plans for any new product categories or personnel moves, either among its long-serving management team or to fill at least one long-vacant hole.”

“Oh yeah, one more thing: Apple (AAPL) said it will dramatically increase its dividend, its share buybacks, and, for the first time, that it will borrow significant amounts of money to fuel this return of capital to shareholders,” Lashinsky writes. “Apple actually bragged on its earnings call with investors that it will be one of the biggest payers of dividends in the world. Think: Insanely great… dividends?”

Lashinsky writes, “The world stops and listens when Apple talks. The problem is that Apple doesn’t always have something to say, and Tuesday was one of those days. It would be foolish to assume Apple isn’t ever going to have anything to say again. But the pressure certainly is building.”

Read more in the full article here.

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Apple just changed everything, again – April 24, 2013
Apple preparing to unleash a blizzard of new products, says source – April 24, 2013
Why Apple’s Q213 earnings make it a fist-pounding buy – April 23, 2013
Piper Jaffray’s Munster: Apple’s going into a good year – April 23, 2013
Apple opens bank vault to dole out $100 billion to shareholders; $60 billion in buybacks the largest in history – April 23, 2013
Debt-free Apple plans to borrow to finance massive capital-return program – April 23, 2013
Apple beats Street on EPS and revenue; ups quarterly dividend by 15%; ups buybacks to $60 billion – April 23, 2013
If Steve Jobs were alive he’d do another buyback instead of upping dividend – March 18, 2013

26 Comments

  1. stupid article

    anything that is going to be announced at WWDC and this fall has been in the works for the last 2 years. not like tim cook is going to beat someone with a stick this week until they whip up a new product for an october launch

    1. If Cook was a real leader, he would be whipping his team into shape to roll out a family of iPhones pronto, plus some nice new products for back-to-school, and perhaps some minor additions for xmas. Cook could have announced an initiative to better serve college or enterprise markets. Cook could have better detailed retail overseas expansion, or explained Apple’s investments in server farms, or any number of things that would have proven that he is adding value to the company. Instead he announced that margins are dropping and earnings will be even weaker next quarter.

      Not a single shred of optimistic news about new products or services. Cook is coasting, and because of it, Apple valuations continue to wane.

      1. not that apple is perfect, but that takes years of design and planning. SJ has been gone less than 2 years. sure you can design a 5″ iphone prototype, but it takes months or years to get the supply chain to product millions of them

        everything apple is doing now is still the work of Steve Jobs

        1. You may be right. But since some Apple products haven’t been updated in 5 years, it doesn’t bode well that Cook continues to make Apple users wait.

          Does anyone really want to buy iWork ’09 in 2013? Even slow, pathetic, clueless MS have updated its Office suite twice since then.

      2. Hey Mikey,
        You’ve been having innovation problems at Dell. Why don’t you follow you’re own advice? After all you seem to know everything. Or is this Mike’s only job is astroturfing for peanuts.

  2. I get more worried every day without the developer builds of the next version of OS X. I hope they don’t make a stupid move like Microsoft did with Windows 8 and try and combine iOS and OS X with crippling OS X.

      1. I would be more optimistic if 10.7 and 10.8 hadn’t implemented unnecessary iOS-like “features” at the OS level instead of offering them at an application level.

        … and iCloud is a major fail for many Mac users. I wish Apple (and MS, etc) would stop trying to shove it down our throats.

  3. ” But the pressure certainly is building.”

    Pressure from whom? No firm in the world discusses “Specific plans for any new product categories or personnel moves…” during an Earnings report. That’s why they call it an Earnings Report, and not a product announcement, or a Press Release announcing a personnel change/hire/etc.

    ?”the only people that want this info are those that will write about how stupid the moves/products are/will be.

    There wasn’t a single journalist that thought the iPod was going to be a hit, every single journalist bought into Ballmer’s “too expensive” argument for the iPhone, and after 2 blockbuster products you’d think they learned, but no, you had the usual suspects bad mouthing the original iPad.

    If they didn’t come equipped with shit for brains, they’d be issued it during journalism school.

    1. ” But the pressure certainly is building.”

      He’s just talking about how Fortune is asking him to write articles and he has no journalistic capabilities beyond dissing Apple. Poor Adam’s feeling stress now with a couple months he’s gotta fill with BS with no substance.

      Good luck, Adam.

    2. True that earnings calls are not usually used to announce new products. However, when asked questions directly by analysts, many company executives will elaborate on what’s in their pipeline. And other companies, such as Intel, widely distribute very detailed product introduction timelines. Fashion industries from clothing to automobiles have very predictable release schedules. The public / investors / users may not know all the details, but they can plan ahead. Apple continues to pretend that nobody needs to know when a new product will be released. I think Cook underestimates how much potential sales have been lost to Samsung and others because potential customers weren’t willing to wait indefinitely for Apple to make a move.

      but most manufacturers offer

        1. Actually, i was interrupted with real work and _gasp_ accidentally posted before finishing. Good thing Derek was here to point out this grievous error. What would we do without you?

  4. This morning on CNBC Joe Kernan referred to Apple as a “gadget maker”. If that’s how Wall Street really thinks about Apple then their expectations will be that Apple release a shiny new toy every quarter for somebody to buy. They don’t care about software or UI design or services. They just care about when the next “gadget” i.e. hardware is coming out. Not sure what Cook or any other Apple executive can do to change that perception. So maybe they’ve decided to give up trying, stick to their roadmap and let the stock do what it will.

    1. “gadget maker”

      Apple: The modern day Wham-O. When’s their next Frisbee coming out? They’re gonna die without a new Frisbee.
      😆 😆 😆

      Is this seriously the best tech journalism these TV finance kiddies can spew?

    2. Let me get this right: you actually watch CNBC, and you believe what you see on that channel? I pity you. Don’t you understand that CNBC is nothing but shills and whores? And that many investors have been badly hurt bye what passes as advice from CNBC? Do you u dear stand that people appearing on CNBC pay, rather than be paid, to spew lies and disinformation on the time slots allotted to them?

      And you take CNBC seriously?

      My advice: run screaming from CNBC. Immediately.

  5. The chorus calling for a new CEO is growing day by day. That’s a good thing. It will eventually happen but, in the meantime, places like MDN and its blind supporters are delaying that most desirable event. Tim Cook appears, to Wall Street and beyond, to have absolutely no idea of what to do about the collapse of AAPL or Apple Inc. moving into the ranks of ordinary. Until we have a new visionary at the helm things are only going to get worse and make any recovery under any new leader harder and harder to achieve.

    1. And–as usual–AAPL spiked a little after Q213’s numbers were released . . . UNTIL TIM COOK SPOKE ON THE CONFERENCE CALL. And then it’s right back to the gates for the day.

      Let him stay at Apple in a lesser role if that is your wish, but for Gawd’s sake, please remove him from the head spokesperson’s role! PLEASE! He is weak, depressing, uninspiring, and seemingly clueless. Begone, Tim.

      1. Funny, that. Many reporters are expressing how confident and thoughtful Tim sounded on the call.

        You on the other hand, fill out the MDN posting box such that clicking on “Truax” tries to take your browser to a website (actually an email address “gradebuster” which Safari flags with a phishing attempt notice. Hmm.

  6. And Apple and Tim Cook say, we will make are move when were damn ready to do so. This fall will be the beginning.
    The only Chorus calling for Tim’s Job is the media chorus which is totally WRONG! Apple is moving on it’s own plans, not what the media or Anal-ists think or want. Apple puts out quality products not beta products like Microsoft and not cheap ass products like Samdung.

  7. I think it is a good strategy to have a year before coming up with a new model. Who likes to see their $700 gadget phased out in 6 months. Only Wall Street analyst do and none of them have ever taken a corporate decision. On the other hand the lame upgrades in iPhone and iPad do point out that Apple is lacking innovation and the competitors and the competition is surpassing Apple. Now Amazon is launching Set Top Box.

  8. Can I keep it simple….I am new to Apple

    I have an iPad and iPhone and am still amazed everyday on how they work together as a business tool that I never had before.

    95% of my contact list are iPhone and iPad users. We have one thing in common…we are all VERY SATISFIED Apple customers.

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