Analyst: Apple CEO Tim Cook acts like he’s insane

“Apple Inc. Chief Executive Tim Cook is doing exactly what Albert Einstein said defined insanity — doing the same thing over and over again and expecting different results, according to analyst Trip Chowdhry at Global Equities Research,” Tomi Kilgore reports for MarketWatch.

“Given how badly the stock has performed relative to the broader market since the company started raising debt to pay out dividends and make share repurchases,” Kilgore reports, “Chowdhry suggests it would seem crazy that Maestri and Cook continue to make the same mistake.”

Global Equities Research analyst Trip Chowdhry
Global Equities Research analyst Trip Chowdhry
“Chowdhry points out that Apple has spent $110 billion on share buybacks, $43 billion on dividends and debt has skyrocketed to $63 billion,” Kilgore reports.

“‘Apple share buybacks have been a complete disaster,’ Chowdhry wrote,” Kilgore reports. “The analyst compared Cook to John Sculley, Apple CEO from 1983 to 1993, who Chowdhry says was ‘instrumental in destroying Apple, and evaporating cash from the balance sheet.’ Apple started paying its first dividend under Sculley’s reign in May 1987.”

Read more in the full article here.

MacDailyNews Take: We knew this would be Trippy Chowderhead the second we saw the headline.

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  1. I’ll give Tim the benefit of the doubt a little longer. Sure all of the post SJ products were meek cowardly so-so by-committee products (iPhone 6, Apple Watch), I’m willing to bet he can overcome that and forge forward a little less pedestrian like.

    Now if the iPhone 7 is another timid outing by an unsure general manager type pen pusher protecting its bread and butter product again, then yeah, it would be time for Tim to go.

    1. ‘Can’t do Anything’ — Why are you here? Is your life SO empty and pathetic that this is how you have to get your jollies?
      Also, can you just use one name instead of a different one each time? That’ll make it just a touch easier to ignore you.

    2. Please tell us, you are so wise in the ways of how the biggest company on Earth should be handled:
      – What business do you run?
      – What is it’s annual income?
      ….. waiting …… waiting …… crickets chirping ….. still waiting

    3. If that is the benefit of the doubt, then I cannot imagine what your post would sound like if you were being highly critical! Benefit of the doubt…what a ridiculous way to try to make your opinion sound fair and reasonable.

      With all due respect, your opinion stinks like the anus of a dead and bloated skunk. But, hey, I will give you the benefit of the doubt.

      1. lol – of course they are.

        It’s just a list of FUD. And it seems pretty obvious that the idiot doesn’t own an iPhone, or probably any Apple gear.

        Just a bunch of hot air.

      1. Blind or delusional but another iPhone like the iPhone 6 series and Apple should brace for the biggest fall of any titan. Will make MS and Blackberry’s fall look like a little tumble.

    4. I love how the Tim Cook trashing always comes down to personal preference about Apple Products.

      The other way the Tim Cook trashing goes is the “Steve wouldn’t do that” as if friggin everyone who owns an Apple product knows exactly what Steve would have done.

        1. The IPhone 6 series is not a great product by any means. The best compliment we can give it is that it’s not as ugly as people say. That the bump in the back is not as awful as people say. That it’s not as gargantuan for its screen size as people say. These are not the kind of praise Apple has traditionally seen.
          Any more Microsoft-like iPhone iterations and Apple will surely go the way of MS and Blackberry.
          The iPhone 6 was not a greater product by any stretch of the imagination.

        2. Are you a paid shill, RP, or just doing it for fun?

          The iPhone 6 series is considered by most people one of — if not THE — best smartphones of all. Is it the gold standard for every other manufacturer to match or beat. Oh, I get it, you’re still shorting the stock. What’s your buyback position? 85? 82?

        3. Are you totally insane? The iPhone 6 is the most awesome and successful smartphone. It s insanely great.

          I love the size of my 4S over the size of the 6, but every time I use a 6, I like it better. Every time a try out a friends Samsung, or open the Android Studio to do a bit of coding (because I have to), I don’t like the UI. Marshmallow is no better.

          Comparisons aside, the iPhone 6 is enjoyable.

        4. I love mine. It could use more RAM, but that’s been rectified by the 6s/+.

          I really appreciate Apple trying to be focused mainly on the needs of their customers they’re not perfect, but they’ve shown over and over again over the years that they can build devices that are enjoyable to own.

          6+ pros:

          *Great screen
          *Fast processor
          *Good browser
          *Huge, high-quality software library
          *Sophisticated OS
          *Apple’s cloud services, while not perfect, have been working well for me

        5. Yes. Thanks. It seems like all companies should focus on the needs of their consumer customers, but as we know, some companies don’t make it a priority.

          Microsoft, for example, has long been known as a company that focuses on their business customers’ needs primarily. That’s great for the businesses but not always for consumers. And many cell phone makers see Verizon, AT&T, etc. as their customers, not us.

        6. RP, “Grow up”???? You bitch about the iPhone 6s as being bad. Thats it, just you don’t like it. K..Mike replied with an answer and you reply with grow up???

          Seriously sounds like you are the one that needs to use grown up facts to support your case, or leave the basement, eat your supper and tell mom good night.

          And it looks like a lot of people agree with me. See below.

          Dude, like what you like but facts make the case, not whining.

          Just saying.

        7. “The IPhone 6 series is not a great product by any means. ”

          lol – this is just your opinion. And it isn’t worth very much.

          I love my iPhone 6, and think it is a great product. My opinion seems to be in the majority.

  2. He’s sees Apple as his workplace. All these guys know is how to take money out of the company. Tim his made bad decision after bad decision. Really bad hires, with really crazy pay packages. Apple needs to lower the prices of devices, no need to build a 4 inch phone to get a lower priced device. price is the problem, and it is clear that Apples could lower prices across the board. To sell into China, those phones must be heavily subsidized. India will have to be the same. It take 2 years for Americans to pay for the phone… that’s too long, which means it cost too much.

    1. Bad Decisions:
      Changing iWork’s User Interface and reducing functionality

      Making Retina MacBook Pros non-upgradeable & using expensive custom PCIe flash instead of M.2

      Changing the form factor of the Mac Pro and making the graphics card non-upgradable and without a CTO option for a different card, particularly a gaming card

      Releasing buggy versions of OS X as if they were finished products

      It would be great if Apple made a ~$1,500 desktop with an i5 CPU, a few PCIe slots, a couple of 2.5” hard drive bays, a couple of nonproprietary Solid State Drive slots (NVMe?) and maybe a GTX 960. They’d probably sell a lot and they’d probably attract Mac users who have Windows PCs for gaming or Hackintoshes.

      1. All reasonable points.

        As for “BOB”, I can’t exactly flame his points, but some of his assertions are as loony as Trip Chowdry’s.

        Apple has a lot of laziness evident these days. I’ve certainly complained enough. And yet, their products remain (overall) the best, the general public figured that out, Apple is top of the heap and show NO signs (despite the Apple Bear Bullshit) of falling off. Apple is NOT going to sell into the cheapskate market with the profit margin of Samsung or Xiaomi. Apple already OWN the smartphone profit share.

        Meme: Everyone knowing how to run Apple, when in fact Apple knows best how to run itself, as demonstrated by world history record success. This stupid meme never gets old apparently. Why? Because SO FEW people trained in conventional, contemporary business have a CLUE about Apple. Such people end up representing how to RUIN Apple. Apple suitably IGNORES them, as is the tradition passed along be Steve Jobs.

        Meanwhile: Apple has LOTS of little things being screwed up at this time. As usual, Apple is never perfect. I for one am all for complaining to Apple about every point where they fall down and disappoint. But NO WAY would I ever pretend to know how to run Apple better, unlike this constant parade of analcyst boobs. 😛

        1. ‘Herself’, please graft your brain onto mine.

          Correction: “…as is the tradition passed along BY Steve Jobs.”

          This never gets old:

          “People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.”
          – Steve Jobs

        2. You also have to factor in deliberate hit pieces on Tim to try and sow doubt in anyone’s minds.
          People forget that Apple has almost destroyed many companies by showing them how to make a fantastic product. Many of these companies are not going to roll over and die. They will fight back in underhanded ways that none of us have thought of.

        3. Mr Clam Chowder.
          Einstian never said if you are making 18 billion a quarter, more than any publicly traded corp in history of humanity, change things

        4. Never mind LATELY; Apple’s ALWAYS had a brazen propensity to screw up, to fail…that’s the hallmark of a trailblazer, one who creates new pathways, most of them dead ends. One of them will eventually become the beaten path.

          Apple makes up for their halting starts with spectacular launches. They seem to plod along like peasants with sputtering torches, then ignite the landscape with surprise fireworks. A big ol’ skyrocket may fizzle but the audience goes home happy with the rest of the show.

          Apple’s a black box, a twonky, something to be regarded with wonder but also suspicion. Because this black box can print money, investors cautiously approach it. But the slightest noise from within unsettles them, and they scurry for cover: it might print monsters instead of money. Analysts who study the mysterious box don’t really know.

        5. Oh dear. You said ‘twonky’. I recently saw the ‘Twonky’ movie on my ‘twonky’, a comedy nightmare, (or is it nightmare comedy?).

          One interpretation of what you’re pointing out is that the analysts are ranting for ‘innovation’ and yet they have an entirely anti-innovation mindset in their attitude toward running Apple.

          *RESONANCE* has been achieved.

      2. I agree with one thing you have said here in your feedback post, and that is the buggy versions of OS X. Starting with Mac OS X 10.7 (Lion) and going forth. El Capitan is buggy as hell. I’m still using Mac OS X 10.10.5 Yosemite and it it too is still has a few bugs. I can just imagine what a nightmare Mac OS X 10.12.x (Fuji) will be like when it has been released to the Apple users. And why the hell does Apple feel we need a new OS every damn year? How about a new OS every 1 1/2 to 2 years with over 85% of the bugs taken care of???

    2. You obviously no nothing of business.

      There is only one reasons to lower prices: supply exceeds demand. Which it is not.

      Why do I pay $90K for a Honda Civic? Or $26 for a cheeseburger? Because in the country I live, people still pay for it. So business charge it.

      Apple doesn’t have to reduce its profit margins or pay its staff less compensation until the market demands it.

      So what that it has to be subsidized in India and China. That’s not Apples fault. And the market in those countries is still paying the asking price. I know several people in China personally that pay more than market price just to have one.

      Of Apple found they couldn’t sell it in China, they would lower the price. But then the black market opens up and there would be millions of “illegal?” shipments back to the US.

      Demand is that high

  3. You lost me at iPhone 6 and AW “so-so-by-commitee” products?

    What is it with people like you. Seems to me you say these things just because it makes you feel good. No actual fact or proof but just slandering crap talk. Slandering is way easier than actually offering up something of value. That is Trippy Chowderhead in a nutshell. he can’t offer anything of value so he just throw out some slanderous labels and see if they stick. You are the same.

    1. He braids his five foot long strands of hair into cornrows, dons twenty pounds of gold jewelry, and dances and sings to rap/hip hop in his Speedo.

      It ain’t a pretty sight to behold.

        1. Chowderhead is an idiot. But you bunch are small-minded, poisonous jerks. Oh, horrors! He’s from a different culture where they were different clothes. What should he wear, to not be insulted? A cowboy hat, string tie and boots? And do a foot-slapping country dance?

        2. or decent people

          That’s casting aspersions on conservatives anyway. I know lots of decent conservatives that don’t make bigoted comments.

  4. Certainly, the enormous paycheques of John Sculley’s time have returned to Apple. Seems, the top 20 lead members and Apple CEO pull in far too much. Steve took 1$ plus a percentage of shares. Tim and gang are reaping in every which way they can. But beyond all that Trip, you must be tripping.

  5. A classic case of confusing correlation and cause.

    Dividends and share purchases did not _cause_ AAPL’s low share price. The were coincidental with it. Ergo, spurious correlation.

    1. It almost seems as though these people are getting paid to deliberately attack Apple in order make the company unappealing to potential investors. Apple is still making plenty of money, opening new stores and hiring new employees so I don’t think the company would be considered a failing one. Fundamentally, the company is as solid as it ever was. I know Apple has no direct control over the share price and can’t turn a weak economy into a strong one.

      I wish Apple were more appealing to investors, but the manner in which Apple is run as a company it might not be possible. How can Apple easily accelerate growth under poor economic conditions without adding some additional business? There’s no one product that will do that or at least not one I can possibly imagine.

  6. On April 23, 2013, Apple began the significant buyback of shares by increasing the buyback from $10 billion to $60 billion. That’s the date we should be looking at, not the date the dividend began. That’s just stupid. Since then, the stock is up 34% despite being well off the highs. Throw in almost three years worth of dividends and the stock is up close to 40%.

  7. I thought there were a lot of big investors who advised Apple to do buybacks. I didn’t realize it was just Tim Cook who wanted to do that. There are plenty of other companies who do buybacks but just not as high an amount as Apple is doing. I wouldn’t say Apple’s share price is doing horribly, but it’s just not doing as well as I thought it would for a company making so much money.

    I honestly thought Apple had a chance to make it back to around $130 by the end of last year because it had relatively decent quarters the whole year. It appears Apple is just not being run to suit the way Wall Street wants it to be run. Meaning, Apple doesn’t seem to be interested in increasing revenue growth at all costs. I’m not sure it’s that easy to do but I figured if Apple acquired a healthy midsize tech company, they could achieve that. I’m only speaking as a person who truthfully doesn’t know much about increasing wealth.

  8. I’ve been long Apple for 12 years now.

    If Apple wants to return money to shareholders, they should give money back to investors in proportion to how long each investor has been long Apple shares. Reward the faithful.

  9. Guys — “Global Equities Research” is not a legit company. It’s wholly owned by Trip Chowdhury, and run out of his bedroom. I’m serious. Look up their website, it’s straight out of GeoCities 1997. I “fake applied” for a job to this company, and the address is in a residential area.

  10. When Apple fails their failures are spectacular. However when they succeed they change the direction of technology forever. Apple is a company that takes risks and if Apple one day sinks into oblivion it won’t be for lack of trying. (Never say never in business.)

    Compare Apple to Microsoft, Samsung and Dell and you get the picture.

  11. Mr Clam Chowder.
    Einstian never said if you are making 18 billion a quarter, more than any publicly traded corp in history of humanity….. change things…..

    Now wallstreet is a different story.

  12. Stock Market 101: Wall Street doesn’t control, decide or “set” the price of a stock. Nor does it “reflect” the state of the economy, let alone the state of any company represented.
    For example, the success of Apple (or lack thereof) has no direct effect on the price of Apple’s stock. Rather, when traders are (in general) more interested in selling it than buying it, the price of a stock declines. The opposite is also true.
    If you “Play” the stock market (trade) you quickly discover the only way to make money on a rising stock is to be among the first to buy it (when it is still low). And the only way to avoid losing money on a declining stock is to be among the first to sell it (when it is still high). The net result, folks, is traders don’t watch the company behind the stock. They are watching each other. If a few start selling a stock, the rest rush to sell it, too. If they hear some news (or some analyst’s comments) that they think will cause other traders to react, they will try to be among the first to so react. Thus they become a self-fulfilling prophecy.
    Investors, on the other hand, are interested in the company. They buy and hold for the long term. For them, it’s a savings account with (hopefully) a better return. But because of this, Investors don’t influence price changes in any way.
    Wall Street is not smart, stupid or clueless. People who cry, “They just don’t understand Apple,” don’t understand the market. It’s a mob-mentality, pure & simple. They don’t care about you, me or Apple. They only care about each other and any “skill” they may have is simply the ability to predict what other traders might do before they do it.

    In other words, “traders” are like sheep… If a few suddenly start to run, they all run and in the same direction. Only afterward will analysts attempt to figure out why.
    What’s the solution for Apple? Minimize their reliance/exposure to traders. So, you begin share buy-backs and bond issues – with an eye toward reducing your risk (from traders) or perhaps one day eliminating it! (Get out of the stock market and go private. All they’d really need is lots of money to fund themselves! Hmmm.)
    I’ll get off my soap-box, now.

  13. Don’t know about insane, but they urgently need to get focus back on creating great, expandable desktop products, offer a server product line, stop dumbing down OS X to iOS, re-introduce stability (as in there is no need for a major OS X release every year), and I thought I’d never say it, stop focusing so much on rainbow flair products. If they want to have a fashion company, spin it off.

    Given they have production capacity to meet demand, they could lower prices in some segments at the cost of less profit.

    Also fix iWorks on the desktop, and strengthen the PRO product line (software.)

    Take gaming and VR serious.

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