“Shares of Apple were slightly lower in mid-morning trading Monday, after the company publicly acknowledged its self-driving car efforts for the first time last week in a letter to the head of the National Highway Traffic Safety Administration,” Natalie Walters reports for TheStreet. “People are pleased with this venture because it means the company is diversifying, TheStreet‘s Jim Cramer said on CNBC’s ‘Mad Dash’ segment.”
“‘Apple’s car issue is something that people want to see because it has so little to do with the phone,’ Cramer said. The tech giant has been criticized for relying too heavily on iPhone sales and not being as innovative as it was under its former CEO, the late Steve Jobs,” Walters reports. “Just today UBS analyst Steve Milunovich put out a note out stating that while Apple’s share was ‘good all over the globe,’ it’s losing some share in China, Cramer noted. That’s one of the reasons Apple needs to move away from ‘just mobile.'”
“This stock could also be affected by changing relations with China under President-elect Donald Trump’s administration, Cramer said,” Walters reports. “‘I still find that this is an area that you could easily relate a tweet about China from Trump to this stock and say, you know what, I’m going to pay a lower multiple for it.'”
Read more in the full article here.
MacDailyNews Take: Apple’s fiscal 2016 revenue from Services* alone ($24.348 billion) would stand at #155 on the Fortune 500 list of the largest U.S. corporations by total revenue, ahead of the likes of Duke Energy, Time Warner Cable, and Halliburton.
A little perspective goes a long way.
*Apple’s services business includes revenue from Internet Services, AppleCare, Apple Pay, licensing and other services.
SEE ALSO:
President-elect Trump meets with Apple board member Al Gore at Trump Tower in Manhattan – December 5, 2016
Dow hits new all-time high; stocks have been on rip-roaring rally since Trump’s election – December 5, 2016
Silicon Valley chiefs frozen out of President Trump’s White House – December 3, 2016
Goldman Sachs: Trump presidency will benefit stocks in nearly every sector – November 30, 2016
Apple: The Trump Effect – November 29, 2016
President-elect Trump tells Apple CEO Tim Cook that he’d like to see Apple make products in the U.S. – November 23, 2016
President-elect Trump says Apple CEO Tim Cook called him after election victory – November 22, 2016
Apple beats Street, services revenue grows 24% to all-time quarterly record of $6.3 billion – October 25, 2016
Tim Cook’s Babe Ruth moment: Calling services biz ‘Fortune 100’ over a year in advance – July 27, 2016
Tim Cook: Apple’s services business alone will be the size of a Fortune 100 company by next year – July 26, 2016
Services aside, Apple did used to be bigger than the iPhone. But over time they have chose to leave the enterprise market, significantly diminish their support for the creatives market, and neglect making machines for the enthusiast market. Even if those are not major full markets for Apple, they need to be all-inclusive in order to maintain an ecosystem that meets all the computing needs of individuals or businesses.
Cook needs to go now… not yesterday, not tomorrow, but right now.
The longer they prolong the agony, the more consumers and investors suffer.
I see Melvin’s voting hack is back.
So the share price is down after Apple admitted its commitment to the car project which is ‘good’ and what people want to hear because they need to diversify out of phones. Am I missing something in this story?
No. People are not mentioning how much liability one takes on when they make cars. The reality of the matter is, that there is nothing more that the lawyers in the U.S. want than an open shot at Apple’s bank account. Mr. Cook seems to want to oblige them.
That’s a frightening thought.
So Apple spins off the car division as a separate company to contain the liability. Problem solved.
Not scary…
No the liability problem is not solved if a car division is spun off, it will be an inherent part of that divisions liabilities.
Think for a second, why don’t you.
Not to mention designing vehicles that can survive in dozens of different physical environments. It’s orders of magnitude more difficult than a computer OS
Not if you’re a long time investor. It sounds great. But if you’re treating Wall Street like Vegas, like so many of these people do, the car is just entirely too intangible right now. If I were 25 years old and looking for a safe bet though, Apple would be the place.
It is a nice blue stars, MDN.
Apple is bigger than the iPhone. Apple is DESKTOP, MOBILE, and HOME Technologies.
On The desktop Apple has the MacBook and the MacBook Pro in several variations. Future Macs? We shall see, but even if there is another iteration of them, can’t last for more than 3 more years.
Under Mobile Apple is iPhone, iPad, and Watch OS (Wearables),
and car play?
Under Home Apple has Home Kit, AppleTV and presumably some sort of Alexa knockoff at some point.
Under Services Apple ties all of these technologies together with Consumer Information Management under iCloud, Entertainment Content and Management under iTunes, and Apple Pay.
In no small part the world has changed thanks to Apple putting a supercomputer into the hands of so many people. They have ignited the age of mobile computing and arguably they always have meant to… all the way back to 1987 if you follow everything they’ve ever said or done.
The iPhone business is big, but Apple is certainly more than just the iPhone.
The question is, if the mobile segment went away, or was heavily attacked by China, who would buy all those services? Mac users? Nowhere near enough. That Fortune 500 position would drop dramatically.
Services succeed as the mobile segment succeeds, and its all too easy for me to piece together comparable services from 3rd party vendors.
Cars? I doubt Apple cars will take to the road in my lifetime. Perhaps Apple Car Services? Fits in with the consumer focus of Apple, Inc. Something more sophisticated than CarPlay?
There is no Steve Jobs so that is the end of it for innovation.
Cook is merely breathing the last vapors of Jobs.
Don’t quit your day job. Keep those toilets running- you’re no Tim Cook.
“We have exciting things in the pipeline.” – T.Cook 2012
“We have exciting things in the pipeline.” – T.Cook 2013
“We have exciting things in the pipeline.” – T.Cook 2014
“We have exciting things in the pipeline.” – T.Cook 2015
“We have exciting things in the pipeline.” – T.Cook 2016
“We think Nokia’s business model was
very exciting.” - T.Cook 2017
“We think Blackberry’s business model was
very exciting.” – T.Cook 2017
“We thought our business model was, um,
very exciting. And uh, hey, y’all wanna see
our spaceship? We think it’s very exciting
and, uh, it’s for sale.” – T .Cook 20??
Just update the macs ONCE a year with a feature bump every six months and Apple soar like an eagle.
Is that too much to ask?
In addition: how about something like this- if you really believe in the touch bar make a keyboard with it. R
-Apple will soar-