How many laws did Apple break?

“Apple just released its numbers for the quarter ending last December, the first quarter of its 2015 Fiscal Year,” Jean-Louis Gassée writes for Monday Note. “The figures are astonishing.”

“We now turn to law-breaking,” Gassée writes. “Law 1: Larger size makes growth increasingly difficult. This is the Law of Large Numbers, not the proper one about probabilities, but a coarser one that predicts the eventual flattening of extraordinary growth. If your business weighs $10M, growing by 50% means bringing in another $5M. If your company weighs $150B, 50% growth the following year would require adding $75B – there might not be enough customers or supplies to support such increase. ”

“And yet, last quarter, Apple revenue grew 30%, breaking the Law and any precedent,” Gassée writes. “iPhone revenue, which grew 57%, exceeded $51B in one quarter — close to what Google achieved in its entire Fiscal 2014 year.”

More Apple lawlessness in the full article here.

13 Comments

  1. This one takes the cake. From the article:

    Juan Pablo Vazquez Sampere’s We Shouldn’t Be Dazzled by Apple’s Earnings Report, published in the Harvard Business Review. Sampere, a Business School professor, finds Apple’s display of quarterly numbers unseemly:

    “Announcing boatloads of money, as if that were point, makes us think Apple no longer has the vision to keep on revolutionizing.”

      1. Liked that one, here is another quote directly from Sampere’s article:

        “What’s more, by dazzling us with dollars, it seems that Apple’s leaders are deliberately trying to divert our attention. By making such a communication effort to let us know how much money they’ve made — instead of what they’ve done to change the world recently…”

        It’s like you are reading an Onion article!

        1. In other words, Apple should have lied in their quarterly earnings call, and reported lower revenue and profit, so as not to appear bragging about how much money they made…

          And with respect to Vasquez Sampere’s statement, of course, we all know that massive profits are always an indisputable proof that a company can no longer innovate…

          Some of these comments are truly absurd. What is truly surprising is that they come from the most unlikely sources — a Business School profesor.

      2. Thumbs up on that one, it would certainly explain the difference between those nice folks coming from places with names like Barbados and Belize and the incredible dickheads coming from places like The United States of America and Democratic Republic of São Tomé and Príncipe.

        /shjt (satire, humor, joke tall tale tag.)

      1. It’s kind of sad. By publishing this pretentious tripe, HBR lends credence to the sloppy thought that went into it. But, then, what is Harvard doing for the country lately, Ted Cruz? Tom Cotton? Dangerous men, greedy for power and willing to pander to any audience for it.

    1. ” finds Apple’s display of quarterly numbers unseemly”

      Apple is a publicly-traded company, and they have a legal duty to report their financial performance every quarter. What exactly does that ivory-tower pinhead want them to do, lie about their earnings?

      -jcr

    2. Umh, Juanito, that’s why it’s called an earnings report. Outfit called SEC demands it. Ring a bell, Mr. Business School prof? You keep training future Microsoft managers!

  2. It’s a look at me, I’m an important Harvard professor and panicking because my students no longer think I know what I’m talking about, hit article. Apple Apple, now every one read. But the irony is that he’s doing just the thing that he “thinks” his students believe. Making himself irrelevant.

    The whole idea of education and science is to first proclaim that what I teach is not the whole truth. What I teach is the best we know as of today. Tomorrow we may learn something new and you, little buggers, will get to see it first, and take it to the bank!

    He panicked. It’s that simple.

  3. Here’s the sad part. My kid tells me a friend of his who is doing a business degree got $500,000 dollar “bonus” for being an intern at Goldman Sachs (sp). An intern for f@@@s sake!

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