2015 was a year to forget from every aspect for Tim Cook and Apple

“After all was said and done, Apple finished 2015 with a negative 5% return, the first negative return for the year since 2008,” Jay Somaney writes for Forbes. Of course, Tim Cook and gang will probably still pat themselves on the back saying, ‘hey, in 2008 Apple was down over 55% versus down a mere 5% or so in 2015 under our watch.'”

“Despite record profits and revenues, Apple still managed to post a negative return on the year which is absolutely inexcusable as far as I am concerned,” Somaney writes. “Many investors chose to make excuses for Tim Cook, as if a man that is being paid at least $100 million per year out of shareholders’ coffers needs some of those same shareholders defending him.”

“Google managed to grow its market capitalization by 46% in 2015 and is now just $52 billion away from overtaking Apple as the most valuable company on the planet, but no one says that Google is too big to grow?” Somaney writes. “Basically, the market/investors/traders/Wall Street analysts are saying that Google with its 15.7% revenue growth rate is worth only 10% less than Apple with its 7.1% revenue growth rate, although Apple revenues are more than 3x that of Google.”

Read more in the full article here.

MacDailyNews Take: May 2016 be far, far better than 2015! One thing for Apple employees to keep in mind in ’16:

Execution matters. Pretty videos only go so far.

We expect a lot. So, deliver a lot. Not like 2015. Don’t deliver yet another thing that “holds great promise.” Certainly do not deliver important products with no stock at launch or for months afterwards (“Tim Cook, operations genius” – oh, really now?). Don’t deliver half-baked UIs, either. Pretend that Steve is staring/glaring over your shoulder.

Knock our socks off, Apple!

No pressure.

61 Comments

        1. Well that depends on whether you are a quack medicine salesman or not I guess, after all the real world is rarely black and white where one swig cures all and one dimension is enough for anyone with a narrow perspective. It is a little more objective and nuanced a place where analysts rarely visit especially where Apple is concerned. The models between the companies are totally different, Google has an inbuilt if narrow profit stream that is difficult to attack so wall Street loves it. Apple is in a market that in theory could be challenged by competitors but alas for the analysts as sales show it has little to no sign of being challenged and in the mean time will earn Apple much more than Google can compete with. However like others before them the US is gradually become in the mainstream a conservative and safe seeking market and thus like with Microsoft before them Wall street prefers what they see as untouchable profit streams even if with big M and Big Blue before that such streams are by no means safe longer term. Thats why Google is desperate to expand beyond its base and so far not exactly setting the World alight in so doing. If Cook or SJ or indeed anyone else, was in charge those simple facts would not be fundamentally different no matter how the self serving critics would like us all to believe through their delusional tirades.

    1. Not for one second…its the absolute truth.. Minus the iphone.
      If 33 people so far have voted the above post with 5 stars or so… … I can easly conclude that there are at least 33 people who are completely blind to what Apple has delivered in 2015.
      These fanboys with their endless applauds for apple regardless of what apple does are doing way way more harm to Apple than helping.. They cheer Mediocracy and push Apple issues under the carpet! Rather than confront them and add pressure on Apple that nothing but greatness is an option!
      Interestingly these very same people are the ones who ate most often found worshiping Steve Jobs…
      Lol folks… Steve had many many flaws..Mediocracy was not one of them !!!
      Wake up.. Smell the coffee , do your part to help … Dont push Apples shit under the carpet or present it as greatness.
      That will only lead to to one and only one place… Eventual failure!!!!

      i personally am looking forward to a “Wow ” 2016 from Apple.. An Apple that Inspires, Shines and blows us away .
      Tim And Team.. I know you are listening.. But i hope you are also Hearing …..

    2. No shit. Every MDN headline is click-bait. Just like every website on the planet is click-bait. Everyone is trying to sell something – even dopes like you if you have a website. Selling a product, an opinion, ads, it’s what the Internet was created for, to trade information freely and quickly. If the ‘information’ is to drive sales or opinions or the smell of dirty assholes like you, so be it.

      So STFU or go somewhere else.

      Sorry, but in a bad mood – and tired of self-important fucking morons.

        1. You’re so full of shit – worship at the altar of Apple and political correctness all you want.

          I’m comfortable in my no-bullshit skin.

          And as usual, you can’t counter-point, you just sling mud. Typical Liberal Obama-worshiping asswipe. I pointed at the fact of the Internet and how ‘moronic’ it is to bitch about sites posting for hits – it’s the purpose of the whole idea!

          What’s your counterpoint? Calling names and obfuscation. And why? Because the truth hurts.

          Man up and disagree with a point -but attacking the point by just attacking the deliverer – total eighth-grade bullshit.

          GTFU

    1. With all due respect… This is one of the silliest comment i have heard…. ” What did google do? ” who gives a Sh-t.

      What matters is what Apple did… Or does..
      Google walked off a 1000 foot cliff.. Lets say…. Its ok for Apple to walk off a cliff as long is its not 1000 feet ?

      What the hell are u guys talking about?

    2. Google is seen as having revenue and profit growth potential, and that generally equates with the stock P/E multiple. so, investors are valuing Google’s EPS a whole lot more than Apple’s EPS because they see growth for Google and stagnation for Apple.

      This will change in the future. Google,is not a magical company…it spends a heck of a lot on products and services that never amount to anything in the retail sense. And their search, advertising, and maps empire is not immune to competition. Apple has already made significant inroads into advertising and maps with particular strength in the mobile computing sector.

      I don’t know why this person seems to feel that stock performance in a single,year is a litmus test for the management of a company. After all, the stock market and individual stocks are subject to a great many global factors – political, economic, currency, civil unrest and war – that are not under the control of any company. If you are an investor, keep your vision on the long term. If you are not an investor, then ignore the variability of the price of AAPL, since it has no effect at all on the daily operations of the corporation.

  1. “…absolutely inexcusable as far as I am concerned”
    I’m sure Apple are quaking in their boots and remind me just ‘who’ you are Jay Somenay?
    “$100 million per year out of shareholders’ coffers ”
    Two points…
    Shareholders get paid after operating expenses, not before.
    Shareholders do not own the company Apple, they only have rights to AAPL shares ownership and distributed profits.
    Wall St agenda – sticking the knife into TC in order to replace him with a bean counter asset stripper who couldn’t care less about Apple, its products or users.

    1. In general, I agree with your post. But you are incorrect regarding corporate ownership. Apple,shareholders do indeed own the corporation collectively. Each share represents fractional ownership. That is the very definition of a corporation. Therefore, as a shareholder, I have every right to be concerned about expenses and employee remuneration because they affect the net profit. The revenues are mine (fractionally). The expenses are mine (fractionally). And the profits are mine (fractionally). Because Apple is a corporation, however, the liabilities are mine only to the extent of the resources of the company. I cannot be held individually liable for the actions, debts, etc. of the corporation. That is why corporations were formed – to facilitate large group,ownership with a manageable liability position.

      1. Sorry, shareholders do NOT own a company, its assets or its debts. A company has the rights of an individual so essentially a company is owned by itself.
        You can elect directors as a shareholder – given enough backing but you cannot tell those directors how to run the company or rule on any aspect of management decisions. Similarly, you are not legally responsible as a shareholder if any action by the company results in harm or even death of a person.
        Buying shares is an investment opportunity, that’s all. It’s just buying the ‘possibility’ of a return either by profit disbursement decided by the board of directors or by the shares gaining stock market value which you can cash in.
        Think about it. When companies perennially lose money on their operations, do you get a letter demanding you make up those losses to balance the books? No, because you as a shareholder have no ownership status regarding profit or loss.

        1. i am not so sure about the debt part of your statement.

          when a company screws up, like volkswagen, and the stock plunges and the company ends up having to pay heavy fines and penalties, it doesn’t seem the executives are held financially responsible, it always seems to be the stockholders.

          those fines and penalties and lawyer fees all come out of earnings or cash reserves – which means a loss for the shareholders.

          1. Yes, but ‘they – the losses’ are classed as operating expenses, not liabilities for shareholders. Shareholders lose nothing as a result of company mismanagement except the value of their investment.
            You know…those disclaimers written in 4 point text text warning that “The value of shares may go down”. It’s all about risk management, making good or poor calls in the investments game is down to the buyer not the company you invest in.
            Remember AAPL is not Apple Inc.

        2. As KingMel says above, collective ownership with a limitation on liability is the very foundation of incorporation. Shareholders quite literally own the corproration.

          Shareholders do literally got to tell the directors how to govern the corporation, and they in turn get to tell management how they want it run. But remember it’s collective ownership, so your 1000 shares don’t hold much sway.

          1. Just wrong…totally.
            As a shareholder you can nominate a board member for election and if you get enough backing, get them on the board.
            The board can, democratically, ‘negotiate’ with the management to push for certain changes in company structure but cannot dictate terms or operating procedures unless they secure enough board backing to replace management leadership. For this to happen, there would be a vote of no confidence by the board which, if successful, could lead to management replacements. If the board as a whole backs the present leaders, then it’s end of. The point being, it stops crazy interest groups from pushing an agenda that benefits only a minority of share ownership and which may result in long term damage in the pursuit of short term gains.

            1. In other words… the board *can* dictate terms or operating procedures if they secure enough board backing to replace management leadership.

              And I would add they have much more power, and much more subtle mechanisms than you’re acknowledging.

              The board can vote to impose their will on just about any aspect of the corporation, but smart boards work with and through good management, not around or in spite of them.

              So yes, a share represents *fractional* ownership, and *fractional* management.

              Sure, there are pre-determined mechanisms that govern how a shareholder can express their direction. Your shares only give you a say proportional to your holdings.

            2. So how much power over a company does a stockholder who owns 51% or greater of the outstanding voting shares have? No one can overrule his/her stockholder vote. If it takes stockholder votes to change Board members, that one stockholder can change everyone, install himself and his friends and literally dictate the operations of the company to the company president who is designated by the Board. I’d say the above is a good example of stockholders ‘owning’ a company.

  2. The issue I have with your comment to the Forbs article is that you’re agreeing with it by making a connection to some software issues Apple had this year. So your endorsing a ridiculous article about wall St and the stock games they play by linking it to some “slight” real concerns. Apple minted money this year and expanded their brand in a big way into the living room. Wall st reaction has nothing to do with this achievement and Tim Cook has NOTHING to be embarrassed about. MDN ‘s reaction to this article should be to condemn it.

  3. This is why 401Ks are a very bad idea for a retirement plan. Demand pensions. Demand laws that don’t allow a company to skip payments into pensions, does not allow company to borrow against a pension, doesn’t allow the raiding of a pension. 401ks 30 years, 40 year gambling sessions. Think Bernard L. Madoff, Michael Milken … Their work and many others have inflated stock prices, and inflated market expectations. Nothing keeps going up and up and up. Nothing, and if you have lived long enough you know it too. Like musical chairs, 401ks, just know you may be the one without a seat.

      1. And Marxist dummies.

        I’m in agreement the way it ‘should’ be, protected savings.

        But, when it comes right down to it, no employer is obliged to provid you a pension account. And if they do, check out what they offer. Don’t like it, go someplace else.

        Hell, start your own business and show ’em how it’s done.

        How the fucking hell you demand our stinking corrupt government that self-incorporated a ponzi-scheme known as the SSA and then stole from it to create protected pension laws is beyond me.

        Fucking Marxist morons, Jesus Christ already.

        Sorry, in a very very bad fucking mood….

        Doesn’t make me wrong, they…except on my choice of language.

        1. Thank God for Social Security Insurance Program.

          Too many people think of it as a handout, when actually people pay into it. Yes, we should all pay into it, but I also believe that it should encompass one’s total income, not just up 100K+ or so, above which, one’s income is completely exempt from social security tax.

          Yes the government has used funds from that program for other things, but you act as if we are going out of business tomorrow. As long as there are americans and as long as they pay taxes the country’s doors are open.
          As for pensions, you must have no idea what they are, or how they can be structured. In the private sector, a pension system could be provided in which employees collectively pay into the pension, and where a company could also pay into the pension. Now what would be the hard ship on the company, many companies pay matching dollars into a person’s 401k. The real difference here is, that in most cases, it is about shares in a company, where your 401k maybe heavy weighted with shares from the company at which you work, clearly you see that’s not diversification. Secondly, some people will work for less pay, saving the company money, an advantage to the company, where their workforce becomes more experienced costing the company less for such a highly skilled or trained worker. People, if they know that in 30, 40 years they will have a secure guaranteed income, many don’t mine working for less. As for government employees, they work for less than what would be paid in the private sector, and the deal is the money not paid in high salaries will satisfy them in a pension. Here is the thing, out of their check the money for the pension is taken. So winning about government employee pensions seems crazy to me.
          You allowed people to convince you to hate your government. Why, because of taxes? In the same breath you will yell for good schools, how is that suppose to happen when you don’t want to pay people to work there. In the next breath you yell for a strong military, are those men and women not to be paid, and once they have given their life providing that comfortable blanket you sleep under are they to have no pension either. Do you want only the streets you drive on to be paved. Only lights on your streets?

          You blame the federal government for way too much. It really your local government you are having problems with.
          So get this, the goods and services that government buys actually cost more when the private sector gets it hands on it. Remember government workers are working for less than market value, you act as if your neighbors, those that are working for the government are idiots. Stop hating your government, it’s really just self hate if you do. “We the people …” You don’t make it better by getting rid of it. You should be bright enough to realize those people telling how bad the government actually spend a lifetime in it why? It bring to mind those running for president that tell how bad the government is, and when you look at them you realize that’s all they have ever done, been part of the government, must be a reason they want to stay in it or want to get back into it.
          Again, I suggest you blame the Federal government for way too much. Way, way, way too much.
          Hey answer this question, why should a company making no profit have a stock evaluation of 10, 11, 12, times earnings. I don’t see why any company should trade at 2 times it’s earning and it is not consider speculation. Please, “Oh it’s trading at a multiple or 6 times earning but I think it is trading to low” And you have faith in that foolishness. New Math again, the anti-derivative is being applied. Why do you trust that, the last thing the say to you before you sign all that paperwork for investing is “You could end up losing all of your invested money”. Did you miss that part of the discussion?

          Oh yeah, most pension plans invest in the stock market.

          Give me a break!

          One last thing, don’t be so upset that others care about others, this is america you are free not to here.

          1. ‘BOB’ – You’re free to leave, also. I remember the day when the liberal media (and me) attacked th 50s/60s mantra of “America – love it leave.”

            Now that the Marxists Liberals are in control, it’s become their own motto to squelch opposing speech. And the hyperbolic ’emotional’ attack (“oh, you’re against gun control so therefore you’re FOR murdering innocent children) about ‘caring’ is just asinine and juvenile – and just another tool from the Marxist mentality.

            The whole idea of the stock market is about speculation, therefore gambling, and you do so at your own risk. Personally, I believe it should be abolished. It’s insane that a company like Amazon is valued the way it is based solely on perceived market share and not its minuscule profit margin, while Apple actually produces obscenely large profit margins and advances products in margin (in spite of the clown they have running the company’s quality into the ground and politically using it for personal gain).

            But then, the whole idea of buying shares of a company in hopes of returning a profit on your investment for doing nothing more than risking your money – that’s equally insane as playing craps and expecting win every role of the die!

            A ‘good’ company will want the best employees and materials to be successful. It would be smart to set aside a small percentage of its profits in retirement accounts to entice good productive employees. But when you create stock, you’re immediately jeopardizing the success of the company for the success of the ‘investor,’ and that is how corporate world (and America) has become nothing but cannibals feeding on themselves.

            SSA was created to take the income of the productive and redistribute it to the less…fortunate (I hate that word, because how many people in our society overcame their ‘misfortune the births or upbringing?). It never took the SSA ‘tax’ and invested it, it simple raised raised and created pie-in-the-sky returns. All it was was another FDR collective/progressive power grab meant to marginalize independent individuality. Make Americans dependent upon ‘government.’

            SSA would have made more sense to have employers deposit those ‘tax’ investments in locked savings account in local banks, who also would be prevent from using that money for stock speculation or other get-rich-quick schemes.

            And to think about it, the same should be done for corporate pension plans – if you don’t work long enough to become vested, they get the money back – and maybe vestment should have a lower bar, with each requirement met, the company could increase its deposit towards a new level, say five year increments.

            But that makes too much sense. And you would probably argue allows for too much bad behavior on companies terminating employments.

            Like ALL political leaders of ALL parties don’t exhibit bad behavior in the laws they create….

            My broad mistrust of government is misguided? Methinks you trust too much…WAY too much.

            I’m sure there’s several flights to China departing within your area on a daily basis. Feel free to buy a ticket to the land Obama wishes he could make our government more like (”unfortunately, we have something called congress I have to deal with”).

            There, I gave you a break – run for it.

            1. handsomesmitty, you have misread, at no point did I invite anyone to leave the country.

              President Obama is a capitalist. Just because he’s black, and Obama is his last name, you have a problem with him. Let’s check the lies you tell, he’s not Christian, he was not born in the US, he’s going to take away everybody’s gun, he’s going to drive the economy into the the ground, he’s going to drive the price of gas up by not allowing new drilling, he’s a Muslim, …
              Ted Cruz was born in Canada, has father was/is Cuban. Oh yeah Cruz’s daddy’s lie, President Obama does not say “under God” when he recites the pledge of allegiance. How many more lies must the man endure. I don’t hear the same cry about Cruz “he can’t be president because he was not born in the US”. Hell where are Cruz’s papers? Where’s his green card? I guess you don’t have any questions about him?

              Enough! Lies about the President of the United States. “No more “just let it go”, “they just don’t know any better”,
              Enough! Those lies are harmful and unhelpful.

              Maybe it’s because you misread a lot. The lies keep coming.
              “One last thing, don’t be so upset that others care about others, this is america you are free not to here.”
              Nothing in that statement invites anyone to leave anywhere.

              One last thing if if weren’t for George Bush raising taxes when he did Clinton would have had a bad presidency. Forget Regan start naming stuff after the Senior Bush!

  4. It’s really going to hurt Apple shareholders (namely, me) to see Google blow right by Apple next year in market cap, but if Apple isn’t interesting to investors then what can be done. Tim Cook and Apple management need to somehow convince the big investors the company has room to grow or offer something that looks good in Apple’s future besides only growing iPhone sales. I’m not sure why Apple hasn’t looked into other businesses apart from selling hardware. Other companies are using both hardware and software as revenue streams and maybe Apple should copy some of those other companies so it doesn’t stick out like a sore thumb of incompetency to Wall Street.

    There has to be something wrong that sets Apple apart in having much lower value than other profitable tech companies. Maybe Apple shouldn’t sit back and let itself be bashed as a “doomed” company all the time. Trying to get the news media working on their side might help. Meanwhile Apple can give me a bigger dividend boost if there are no share gains to be had. There’s still the dilemma of Apple not being able to touch all that overseas cash, so I realize they can’t use most of the revenue they’re making and that’s really not Apple’s fault for sensibly avoiding being taxed unfairly.

  5. Apples share prices are down because of people like this asshat. His byline:

    Jay Somaney , CONTRIBUTOR
    “I help investors and traders navigate the stock market.”

    In other words, you don’t really work for a living.

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