“Logic says that Apple is in transition,” Richard Saintvilus writes for TheStreet. “It began when Steve Jobs died. As an investor, it’s foolish to not embrace this change and adjust your expectations, regardless of how difficult this mental changeover may be.”
“It’s been two full quarters since Apple’s current CEO, Tim Cook, stated publicly that Apple is ‘not a hardware company.'” He didn’t say this once, but twice,” Saintvilus writes. “Cook, who has become a popular punching bag, also said that ‘there are other things we (Apple) are doing and could do to have revenue and have profit flow.’ What Cook understands is that a ‘new Apple’ is coming, and what is leaving is the overreliance on hardware.”
Saintvilus writes, “Going forward, it is services that will drive Apple’s growth and margins. But Apple bears refuse to accept this. Nor does it seem that this new reality matters to those who are constantly calling for Tim Cook’s head… But the fact of the matter is, this is no longer Steve Jobs’ Apple. That’s right, I’ve said it… This is a ‘new Apple.’ As such, investors need a new way to think. The ‘quick buck’ days of the past five years are over and, as with Steve Jobs, they ain’t coming back. What will come back, though, is higher revenue and cash flow, which will spur a much higher stock price.”
Read more in the full article – recommended – here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]