6 reasons why Apple is still more doomed than you think

“During its holiday quarter, Apple sold 5.5 million more iPhones than expected and earned $18 billion in profit. Total revenue of about $75 billion was 12% more than expected,” Peter Cohan writes for Forbes.

“Moreover, revenue in China soared 70% to $16.1 billion,” Cohan writes. “And its potential for growth there is significant since it has four stores there now and plans 40 by mid-2016, according to the Washington Post.”

“Given all this good news, what could possibly be wrong with Apple?” Cohan writes. “Here are six things that should give investors pause.”

1. Expensive stock
2. Tumbling smartphone prices
3. Declining margins
4. Shrinking iPad sales
5. Overhyped Apple Watch
6. Inability to innovate

Read more in the full article here.

MacDailyNews Take: Let’s all gather ’round to gawk at the village idiot, shall we?

Some advice for Cohan: When you do not understand a subject, it’s best to write about something else; something you understand. You know, like protective helmets and drool cups.

Related articles:
Apple iPhone No. 1 in China smartphone market share – January 27, 2015
Apple Inc. posts biggest quarterly earnings of any company ever – January 27, 2015
Apple destroys Street with all-time record earnings – January 27, 2015

51 Comments

  1. Quite hilarious – this clown’s article. All his childish analysis is “supported” by “data” from IDC and CEA – which we know both have amazing trackrecords of always being so accurate. Ok you took a breather, now shove your head back up your rear-end, Peter Cohan.

    1. Yeah, from the headline, I thought it was another article by our favorite convicted SEC stock fraud manipulator who’s name I won’t use as I don’t want to advertise his new business.

    2. A totally complete idiot. His list is utterly ridiculous:
      1. Expensive stock – Stock expense is judged by investors who see it likely to be worth the investment, nothing more
      2. Tumbling smartphone prices – I was unaware of the ‘tumble’ in Apple smartphone prices. Their prices remain high and they are selling all they can build resulting in…. you guessed it…. high stock value!
      3. Declining margins – Apples margins are the highest in the industry resulting in… drumroll please… high stock value!
      4. Shrinking iPad sales- This happens usually right before a new iPad is due out as people wait for the new model.
      5. Overhyped Apple Watch – Overhyped? Given it has not even gone on sale yet, a price has not been announced, and future orders cannot be placed even, how can anyone even guess whether it has been “overhyped” or not?
      6. Inability to innovate – Given the massive sales of Apple products, whether they have innovated or not is easily recognized in the carnage that Apple has created in many areas. Their ‘market disruption’ in the music, video, books, and other major industries is legendary. They have fundamentaly transformed so many industries precisely because of not only their ability to innovate, but refusing to bring to market LOSERS. Apple is far better than many companies at NOT bringing to market garbage. Products such as Google glass (a flop), and Microsoft’s new hologram glasses are examples of products being released and hyped long before they are ready for prime time. Apple rarely introduces a product until it is ready. The market ‘gets’ this. This idiot has yet to grasp this.

  2. A pre requisite for every analist should be to put their money where their running mouths are and invest their wages and savings according to their advice, especially regarding Apple.

  3. “Better to remain silent and be thought a fool than to speak and remove all doubt.” – A. Lincoln

    Methinks that Cohan might do well to review his Lincoln before even thinking about writing one more word. Hit whore or total ignoramus – what say ye, denizens of MDN?

    1. In all fairness, the quote has as often (if not more often) been ascribed to Mark Twain, although, it is one of those for which the specific origin (a speech, an essay or whatever) cannot be traced with certainty for either of the two…

  4. Can we delete the word innovate and any related words from the English language please? It has become meaningless as people just use it all the time without any real idea as to what they mean by it. Innovation comes in many forms and of varying scales. There could be massive innovation in a perhaps a small area, which in the grand scheme of things may not be headline grabbing, but business (and life) is not just about headlines. If Apple weren’t so great across the board, all the whizz bang products in the world would be meaningless.

    1. You want to witness innovation? This guy….. well… DO YOUR HOMEWORK PEOPLE!!!!…. He is right up there with Steve Jobs.

      https://en.wikipedia.org/wiki/Dean_Kamen

      Look deeper into the water purification system…THAT HE INNOVAAAAAAAAATTTED!!!!! Unlike JUNK PUSHER, COPIERS IN THE EAST!!!!

      The Apple philosophy goes Much MUCH deeper than the almighty monetary Dollar $$$$$$$$$. Yeah Think That IS Different. Bunch O PC DOLTS. Hows that restructure coming along MIKEY!! A-Hole.

    2. Innovate/innovation has been on the top of my most hated word list for some time now. Somehow it’s replaced “synergy” as the most abused buzzword, but at least synergy retained actually meaning.

  5. Time and again, the market has proven that the “idiots” are the retail investors that “buy the top” of a stock trading at bubble prices.

    The iWatch may be the tulip, we’ll see.

    1. The *Apple* Watch is unlikely to be the “tulip” preceding AAPL’s fall.

      If you consider AAPL to be overpriced, then you should have invested in Microsoft a couple of weeks ago. Such a solid company…I hear that Microsoft investors are quite pleased with recent events – not.

      Seriously, equating the current state of AAPL with a price bubble?

      Please tell me how to tell when a stock is topping out in price. I missed that psychic ability in investment class.

  6. One thing that does scare me a little is Apple seems to be reliant on iPhone sales for these big quarters. Most of the sales are iPhones and if that ever shrinks its going to hurt one way or another.

    1. Now that is actually a worthy input. I don’t know why you were down voted for it.

      The iPhone is Apple’s dominant product in terms of revenue and profit. Slowing sales or reduced prices/gross margins will significantly impact Apple’s bottom line. People who are focusing on iPad sales or the upcoming Apple Watch are truly missing the boat. But the good news is that Apple’s cash cow is expanding into China with plenty of room yet to grow before tailing off in the long term into a more stable replacement phase.

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