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. These articles are nothing more than clickbait. Given Apple’s massive war chest, and their product’s pervasion into society, they aren’t going anywhere. There are now 1 billion iOS devices in circulation. A day will come when Apple isn’t as big as it is today, it’s the natural evolution of a successful company. But are they doomed? Nope, nada, not even remotely close. Look at Microsoft, as an example, there are 1.25 billion active PCs using a version of Windows. They keep on turning out profitable quarters, yet ANALysts keep saying they are doomed. Paaalease!

  2. This one is my favorite:
    1. Expensive stock

    Oh really? And how about Google, Amazon…, a bunch of blowhard companies that are just too Gee Golly Whiz not to have their prices fall into the land of reality. Meanwhile, Apple leaps forward every year with the new and the best and can’t get respect from pustules like Peter Cohan who writes for Forbes.

    My second favorite is:
    6. Inability to innovate

    I love this one because it’s one of those wonderful litmus tests of stupidity. I wonder who this cyst thinks does innovate, if not Apple. On second thought, I don’t care what he thinks. 😛

  3. Why post the link? Click bait – all thee writers want. They know Apple fans will show up, give them hits and fill their comments section. And when these really bad, no following writers are desperate – they stick Jobs name in a title.

    Don’t click people.

    1. Come on people. It’s as justme says. This is hit whoreing, this guy doesn’t believe what he is writing. It’s a headline to enrage people, suck them into the Forbes website and create hits.

      Don’t give them the oxygen that spreads their tomfoolery or the pleasure they derive from their sad non productive job.

    2. The reason why MDN links to this? Because all of this part of the same Media Churn Beast, MDN, Forbes, this chump, we the commenters, etc. If you disapproved of the article and also disapprove of MDN linking to it, then aren’t you just adding to it by commenting? It’s all just entertainment, really.

  4. Looking at his points …

    1) The stock is expensive – Well it was a lot cheaper a few months ago. When a stock does well, it becomes more expensive.

    2) Tumbling smartphone prices – That’s true for any manufacturer not named Apple. Apple’s average selling price has substantially increased.

    3) Declining margins – Gross margin went up from 37.9% to 39.9% compared to the same quarter last year. No other tech manufacturing company can earn margins anything like those that Apple earns.

    4) Shrinking iPad sales – Which are more than covered by increased iPhone and MacBook sales. Products which generate higher profits too.

    5) Overhyped Apple watch – Nobody knows that until it goes on sale. It’s certainly got Swiss watch manufacturers worried and they don’t worry easily.

    6) Inability to innovate – Apple Watch is an innovative take on the smartwatch idea. Apple Pay is an innovative solution to contactless payments and is already. These are two innovative products that have appeared since Steve died. Apple’s existing A series chips are delivering levels of performance that rivals are struggling to match in future versions. Cohan keeps insisting that Apple has lost it’s mojo.

    Cohan demonstrates that he has no understanding of how Apple works or why it succeeds. The fact that Forbes choose to publish such flawed nonsense reflects very poorly on them.

    To see a great example of Cohan’s nonsense being savagely debunked, you can’t do much better than the Macalope did last July.
    http://www.macworld.com/article/2455556/a-steady-decline.html

    Or for even more laughs, you could always check out the Maclope’s response to Cohan’s “7 reasons why Apple is more doomed than you think” from April 2013. Cohan’s reasons at that time include –
    Apple is no longer the world’s biggest company
    Apple has nothing new in the pipeline
    Without Jobs, Apple can’t innovate
    Introducing a cheaper iPhone will mark the end of Apple’s leadership
    Apple is not well positioned strategically

    http://www.macworld.com/article/2036318/macalope-contribution-not-required.html

  5. I made sure I got my two cents of a comment in on that Forbes article. People like him are entitled to their opinions but I think his article is rather useless. $178 billion in the bank will provide Apple with all the resources it could possibly ever need to stay relevant. That being said, there are never any guarantees if something terrible happens to the economy or a world war happens or that massive asteroid strike.

  6. Why, oh why, are idiots like Peter Cohan allowed to hold these positions?

    1. Expensive stock — Why was this not a problem when it was $700 pre-split? Why is this not a problem for any other company? Why is Apple doomed for having the best quarter ever?

    2. Tumbling smartphone prices — If you mean the really shitty phones with questionable CPUs And Randroid™, then yes.

    3. Declining margins — Seems that the price of iPhones hasn’t changed, but I imagine parts have become cheaper, so is this really an issue so far?

    4. Shrinking iPad sales — Yeah,, ok. They *only* sold 21,000,000. That said, there are two things keeping the iPad from growing in my mind. First is the longevity of the iPad. My iPad 3 is going strong, even in abusive, 6-year-old hands. There’s no need to replace that for him anytime soon. Accordingly, my iPad Air does everything the iPad 3 did with no stuttering or hesitation. Secondly, a new iPad needs to do something more — blur the lines a bit between iOS and traditional computer. Give me file access and minor multitasking, such as watching a movie in a second window while using Safari.

    5. Overhyped Apple Watch — Everyone said the same thing about the iPhone, 6 months before it was released. How about we wait and see actual numbers?

    6. Inability to innovate — I keep forgetting that innovation not only takes no time at all, but Mr. Cohan has insider clearance at Apple to see the (lack of) innovation firsthand.

    People like Peter Cohan need to justify their jobs and the only way to bring visitors and keep ad revenue going is to make an article with Apple in the headline. I think this needs to be an official Take To Task article…

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