Apple’s employee morale problem; stock drops to $400 amid reports of employee defections

“Apple’s stock fell to $400 per share, hovering near that level in midday trading Monday following a pair of analyst reports that cast renewed doubts about the company’s growth,” Chris O’Brien reports for The Los Angeles Times.

“Trip Chowdhry, an analyst at Global Equities Research, also said Apple Inc. employees are expressing concern about the company’s direction and are leaving to work for rivals such as Google Inc. and Facebook Inc.,” O’Brien reports. “‘Lower Stock price is causing Apple to continue to lose employees to Google, LinkedIn. FaceBook and HP,’ he wrote. ‘Employee morale at Apple is low.'”

O’Brien reports, “Peter Misek, an analyst at Jefferies & Co., reported that merchants have increased inventories of iPhones, a sign that sales are slower than expected.”

Read more in the full article here.

“Apple, the world’s most valuable technology company, fell 2.7 percent to $402.54 at the close in New York, after earlier dropping as low as $398.05,” Adam Satariano reports for Bloomberg. “The shares have declined 24 percent this year, compared with a 10 percent gain in the Standard & Poor’s 500 Index.”

“Other than a new MacBook Air laptop, Apple hasn’t had a new product go on sale since last year, leaving investors and customers awaiting the release of a new iPhone and iPad, which may arrive later this year,” Satariano reports. “Apple’s profit fell for the first time in a decade in the most recent quarter, and analysts predict the slump will continue in the current period.”

Read more in the full article here.

MacDailyNews Take: FUD.

Related articles:
Apple is dead or something – June 24, 2013
Apple tumbles below $400 – June 24, 2013

82 Comments

  1. How do Facebook and Google have a clearer vision than Apple’s. Google is all over the place and both Google and Facebook rely mainly on advertising revenue.

    1. Because google seems nimble and willing to experiment. Apple feels like a fascist state that is good as long as you’re king of the world. When you’re not you begin to wonder what else is out there… Gotta keep it fun and a positive place to be, Tim!

      1. What in idiotic anonymous coward post.

        Apple has been a magnet for the most talented when it was the underdog of the world.

        I’d like to know exactly WHO is all demoralized and stuff and WHO is jumping ship. I strongly suspect it’s NOT people with much talent.

        1. Well clearly LinkedIn has this amazing vision … not.

          You really can’t take anyone seriously when they make a claim like ‘Apple feels like a Fascist State’. I would suspect it is rather less like a fascist state than when Steve was alive so where is the evidence of the opposite? Oh of course you don’t provide any, now there’s a surprise.

          1. Steve was a classic entrepreneur, a total PITA to employees. But he learned with time how to direct without being an overlord, which is one reason Apple is doing so well without him. Usually the removal of an overlord means the rats come out to play and wreck stuff. We only know of one such rat, and he got fired. (Forstall) Instead, we have a system at Apple that has obviously continued to thrive with surprisingly few glitches.

            Yes, there have been plenty of glitches. I’ve pointed out more than a few myself. But the fact is that Apple is currently being kept under a GIANT MAGNIFYING GLASS if only so the rabid Wall Street Wolves can chew at Apple’s healthy limbs. I did point out that the current Wall Street is cannibalistic, right? Shaking rattles, swinging shrunken heads, chewing on brains (‘MMM! BRAINS!’), catching Kuru disease, going insane, and so on.

            http://en.wikipedia.org/wiki/Kuru_(disease)

        1. Not so sure and I have a different point of view.

          It was not long ago we read Apple stories on almost a daily basis for months projecting Apple will be a $1,000 stock.

          Google will probably be the first American stock to reach $1,000 a share. Presently the pundits, tech writers, analysts, Wall Street, hedge fund managers and the media are ALL IN continuing the daily Apple negative perception mugging campaign to set the stage. Why, I don’t know, don’t agree with it and I believe they picked on the WRONG company.

          But this is day to day reality now since the stock price tanked from $700+. The money they make every quarter, billions of cash, great products and vision, customer loyalty, sound company fundamentals — ALL seem to be ignored by fickle Wall Street.

          So, your point is correct — perception is everything. Will it turn negative for Google and positive for Apple anytime soon? Believe Apple will lose that image fight right now.

          It started with the N.Y. Times slamming Apple and winning a Pulitzer, if I remember correctly, then onto the Senate hearing on offshore tax avoiding cash, DOJ suing Apple for e-book practices and the limited court success of Apple suing all the patent infringers’ worldwide you don’t hear much about.

          The Apple negative perception nuclear army is out there full force and looks like Google is standing pat like a neutral country in World War II. Almost immune from any criticism, concerns of data mining, poor products, Android market share but not market profits leader, et al. Unreal and disgusting.

          While I HOPE YOU ARE RIGHT, a lot has to change in coming months.

          Regarding the employee defections, what are the hard facts? Read the article from the El-Lay Times and not one defecting employee was quoted on record or deep background anonymity. Reads more like Hollywood gossip columns and MEDIA FUD to me.

          1. Google will probably be the first American stock to reach $1,000 a share.

            Yeah, but what does that really mean? They never split their stock so BFD. If Apple had never split their stock they’d have already beat $1000 a share several times over.

            …continuing the daily Apple negative perception mugging campaign to set the stage. Why, I don’t know.

            I’ve theorized on the Apple Bear bullshit all year. I’ve come to the conclusion, after watching most other companies decay in FAIL mode, that I don’t care. With time the masks will all fall and reality will set in again. We’ll get to check out the corpses on the battlefield after its all over. I fully expect Apple to remain at least a vital contender.

            And yes, this article sounds like the SOS to me. Herd the sheeple with FUD. Propaganda is an ancient art. Again, the masks eventually fall off. Kick the corpses to be sure they’re dead. Blahblah…

            1. Agree, Apple will remain a vital contender.

              However, the FUD and sheeple propaganda perception campaign is NOW in full swing.

              Fingers crossed, Apple. Kick some arse!

    2. One big difference, and we see it almost every day here. Apple continues to quietly make great products. It operates in secrecy and seldom blows its horn. Google, on the other hand, is into everything. Hispeed wifi for cities, balloons that may change how we connect, streetview, iGlasses, cars that are run by computers, social networks, Google Earth with Ocean and Sky. These things are interesting, indeed exciting. I know a lot of Google employees and Apple employees. They are all brilliant, both only hire the best. But Google has presence everywhere, Apple is a closed shop. Thus AAPL $$400, GOOG $869. Not better, just more interesting. Ok, start the attack fan children.

      1. Also, Cupertinojoe… Compare apples to apples…

        Market cap: AAPL $378B vs. GOOG $288B
        P/E ratio: AAPL 10x vs. GOOG 26x

        And the big one…Income derived from:
        AAPL: sale of great products to informed customers
        GOOG: sale of its uninformed customers to its advertisers using crappy free products as bait

        Botom line: AAPL good, GOOG evil

        1. Your right, Apple success is built on selling premium products. For the last 5 years if you had the iPhone you had the best.
          Yesterday Which? magazine in the UK wrote a rather scathing report claiming the iPhone 5 is “the slowest” of all premium phones.
          Daily Mail headline is ‘Rotten Apple’ and its the main story of the dailys in the tech sections across the UK.
          Apple, you cannot launch the new iPhone and not be the fastest or the best.
          Fingers crossed.

      2. And of all of those Google examples that you list, Cupertino Joe, how many have actually amounted to anything? What has Google done well beyond search (which it has corrupted) and maps?

  2. Uh, pay no attention to the rest of what is happening with the stock market at the moment, okay?

    Stock does not the company make. Wall Street can cave and Apple will still be producing and selling worldwide.

    News Item: The world does not revolve around Wall Street.

        1. The book is better, which is typical with Steven King stuff. As such, no way am I going to watch ‘Under The Dome’ on TV. I’d rather go watch ‘Village of the Damned’. What happens under THAT dome is much more insidious. 👿

          1. ‘Village of the Damned’ is one of the scariest movies ever made. Yes indeed, great choice.

            ‘Dementia 13′ is also worth a look for historical benchmarks, directed by Francis Ford Coppola his first mainstream movie after a few porn flicks.

            ’13 Ghosts’ is also a 1960 campy classic.

            And don’t forget ‘Carnival of souls’ which is really scary. Dan Dan Aykroyd classic line.

            Enjoy.

  3. Bloomberg has been running lots of FUD articles against Apple lately. I don’t recall this author saying even ONE good thing about the exciting product announcements made at SWDC a few weeks ago. Talk about a BIAS. Eg, That new MAC Pro looks friggin AWESOME. I WANT ONE – NOW!

    Let me add this, however. Under Jobs, Apple kept BUZZ going strong throughout the year with press events and product launches in many/most quarters. But last year, it seems Apple tried to concentrate all their launches into the Fall quarter. That hurts the brand IMO, as it appears Apple is not exciting and innovating at a competitive pace during the remainder of the year. It allows the naysayers to attack.

  4. This is the Obama economy, where government spends every nickel there is plus a few trillion more every year it creates with Federal Reserve magic dust. The private economy is destroyed along with the lifetime investment portfolios of millions who saved, while the Federal government spends $160 million for a two week vacation by Obama to Africa. Apple can go to $0 if the Obama economic policies are allowed to continue. A massive welfare state for anyone in the world who can get here all paid by the increasing taxes on the few who still have the motivation to do a job. That number is shrinking. I am about to give in and go get my Obamaphone, my student loan (that I won’t pay back), my mortgage that I won’t pay, an EBT card for all my food, free condoms from the taxpayers thanks to Sandra Fluck, maybe some free abortions for the women I decide to screw. In other words, I plan to become a Democrat.

      1. No, what is bad for all of our health is having a President who hates all that made America great, like freedom, private property, free enterprise. Obama prefers government mandated everything, government spring on all citizens (but not illegal aliens), government paid for abortions, and no military help for four Ameiricans under assault in Libya, who he left to die while he went to bed. Obama also likes to use the IRS thugs to target his political opponents, something I used to think liberals opposed, but now realize they like if it is their guy doing it. Obama is successfully destroying all that is good and you see the evidence every day in stock prices, in freedoms lost, in dead Americans, in tax audits of innocent people, in grisly abortion clinics where living babies are hacked up like beef in about her shop, and nobody cares.

        1. What does Obama have to do with an apple employee morale problem? I really don’t care about american politics being I’m not american but your obsession with Obama is comical. He’s on your mind too much and you will develop some kind of health problem, like a brain aneurism or something. Ranting about Obama on apple forum is not going to help you. Relax and live life.

          1. Maybe you like a communist leading our country, who let his Ambassador die along with three others and ordered no help be given. Maybe you like the guy who promised to cut the deficit in half adding 1.5 trillion dollars to the deficit every year. Maybe you like 10% real unemployment with 40% unemployment in our cities. No – you are a clueless idiot. By then you voted for this asshole.

            1. I see you didn’t read my post as I clearly stated I’m not american so how could I vote? Is it Obama’s fault you lack reading comprehension too?

        2. Kent, many of us who come here to worship at the altar of Apple don’t live in America and don’t give a flying fuck about American domestic politics. Just as I’m sure you wouldn’t give a FF about our domestic politics. Go find a political forum and fire away to your heart’s content there.

          1. Good question, .me. Whatever country you come from is probably infected with the Obama disease, Communism. All of Europe is practicing wealth destruction through high taxes and government run welfare programs and pension and health programs. These are all non-sustainable actuaries and are actually bankrupt. Europe is presently only held together by Germany subsidizing the non productive countries. Japan is about 18 months from a massive currency collapse due to decades of its central bank monetizing debt, the same QE policy we have had for now about 6 years.

            So, Apple employees and most poster on this board voted for Obama, which means you voted against capitalism. So don’t cry when the stock price of Apple craters, because that is what you voted for. You .me probably voted for this in your own country. Apple will go to $200 before year end if Obama successfully pursues his “energy” policy which is simply putting coal companies and large manufacturers that use lots of energy out of existence. Why? Because Obama wants coal companies and their power out of existence. He stated this during his first campaign.

            Get used to it. There will be no happy economic news for the next five years. Socialism is about spreading misery, not creating wealth.

            1. Good point Flea! Today Onama attacked the energy industry. That is what fuels all global economies. Obama will destroy the US economy and the US influence will drag down the entire world economy. He hates private corporations. Apple shareholders – get used to declining stock for the duration of his socialist influence. All good things will be destroyed by this President. His purpose is to destroy America, which he despises.

            2. @FormerNavalPerson

              @Spanish Flea

              Your both OFF TOPIC.

              Why don’t you just make your on arguments disputing what @Kent has to say?

              Answer: I doubt you have lucid arguments based on facts. So the dismissive put downs is all you have. Pity.

            3. Firstly, dear Kent, I did not ask a question. Secondly, if you think you’re so smart and politically astute, why aren’t you running for political office with your manifesto instead of wasting your time here? I think we all know the answer to that! Oh, don’t bother with some smart-arse answer Kent, nobody here cares.

            4. @.me — don’t speak for me!

              Don’t go off topic sideshow questioning political views. He has the same right here as you.

              You would do much better if you engaged counterpoint points of you. Content, got it?

            5. “You would do much better if you engaged counterpoint points of you.”

              Lots of Martinis tonight.

              Correction: ” … counterpoint points of VIEW.

            6. Good point. And I agree that Obama has zero qualification or actual authority to regulate power plants. His statements about global warming are less scientific than an episode of Pawn Stars. He is clearly an imbecile driven by stale communist ideology and raw power politics. But, he does have real power to destroy businesses and individuals, as with Michael Hastings, the journalist he had killed. Obama and his Chicago thugs will wreak big damage in all areas. They are like arsonists. No creative power – just destruction.

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