How Tim Cook could win back Apple investors’ hearts and minds

“After Apple’s shares sank following a profit warning about worse-than-expected quarterly revenue last week, chief executive Tim Cook has been trying to put a positive spin to the company’s outlook,” SC Yeung writes for EJ Insight. “Cook told CNBC’s Jim Cramer on Tuesday that despite iPhone’s lackluster holiday sales, the company generated US$100 billion revenue that was not tied to the smartphone in the last fiscal year.”

“Sluggish sales in the last quarter were mainly due to the cool market response to the iPhone XR, sending Apple’s market capitalization down from more than US$1 trillion to just around US$700 billion recently,” Yeung writes. “The dramatic plunge reflects investors’ pessimism about Apple’s near-term outlook, regardless of the management’s pledge to pursue a prudent approach to both product development and financial management.”

“Many observers have revived doubts about Cook’s leadership, noting that he has failed to deliver the same amount and level of innovation that underpinned the company’s surge when Jobs was at the helm. However, comparing Cook to Jobs is unfair, if not a pointless exercise,” Yeung writes. “Still, the bottom line is what counts. The latest financial figures released by Apple are already historical data. Investors want to know the company’s direction and its latest innovations. Cook and his team must deliver on those goals to regain investors’ trust.”

Read more in the full article here.

MacDailyNews Take: No pressure, Apple.

SEE ALSO:
Imagining Apple’s post-iPhone future – January 10, 2019
Cramer: Apple’s stock will continue to struggle until one of two things happen – January 10, 2019

23 Comments

    1. … my heart and mind if he forked over $5 Billion to build the wall. Trump should have made that part of the deal to bring all of that money of the American companies into the country.

      1. You said it. Whingers always forget Apple Inc is not AAPL and there is no obligation to appease Wall Street’s greed when they get the jitters through their own malfeasance and inability to deal with Trump’s trade wars.

  1. If Apple watch could read high blood pressure and high blood sugar in diabetics, it could be a game changer. Then AAPL could hit to the MOON. Yes, to the moon, you hear me right. 🙂

    1. Not going to happen anytime soon. Remember, your stupid president shut down the FDA. Even if Apple’s wrist gadget worked for accurate monitoring as you dream it will, it cannot not receive approval in the foreseeable future. But like the money pit Project Titan car, Apple doesn’t have the expertise to bend physics to its will. For accurate blood sugar monitoring, you need a clean sensor with direct blood access. Not a filthy watchband.

      Also don’t forget that with medical devices comes huge liability. Any error in Apple Watch health function, no matter how many disclosures the user has to click through, will expose Apple to massive lawsuits in the litigious culture that is the USA.

      1. Mike wins stupid comment of the day award.

        FDA approval takes YEARS, not a few weeks you dunce. So, it has nothing to do with any shut down. Remember when your Savior Obummer shut down the government. Right , you were okay with it then.

        1. Indeed,
          Plus jumps right out of the gate with a full blast of stupid bias aswell!
          Trump shut down the gov not the emotional and self destructive libs out of stubbornness!

          Just funny.

        2. Dave, I will ignore your personal insults.

          It appears you have no clue how medical device certification through the FDA works. While it is true Apple has been putting a full court press on the FDA to put its stamp of approval on electronic sensors and apps of all kinds, the FDA has no let its guard down. The FDA has stated that any manufacturer that markets a device to treat a specific medical condition (e.g., diabetes) will be regulated as a medical device, even after launch if the manufacturer attempts to do an end run around regulation. Presence of a sensor isn’t the issue — it’s already a legal quagmire to show that Apple’s innacurare non-invasive sensors are worth a damn to consumers even if Apple was to dumb down their device into a non-medical “handy information screen” that doesn’t meet FDA regulation for accuracy and safety.

          Suppose Apple takes the smarter approach and seeks full FDA approval for its Class III medical device. First, all noninvasive trackers have failed to gain approval because they simply can’t get the tech to work reliably. So there’s a lot of tech to overcome. But it’s not even clear that Apple has pre-market approval to proceed. That is a multi-year proposition and a government shutdown DOES halt progress. Analyses and trials for device certification cannot begin until the proposal has been approved by the FDA. The FDA doesn’t rubber stamp the first proposal a company submits. There’s plenty of back & forth coordination between regulator and inventor. Anything the company does without regulatory concurrence cannot be used for gaining final cert. Bottom line: with no approval to begin, then progress in getting the device to market will grind to a halt. But you knew that, didn’t you?

          Of the 165,000 or so health related apps for iOS and Android, only a small handful have any FDA approval and therefore are almost entirely consumer annoyances with huge error (Did you fall today with your Apple Watch???) more than reliable health information aids. Fanboys expecting Apple to deliver reliable glucose monitoring should be prepared to wait. Will a few week shutdown make a difference? Perhaps not, but given how Trump’s crass attitude toward federal employees is prompting them to take retirement rather than put up with more executive incompetence, it is not unlikely that a key government official assigned to an Apple application could leave, putting Apple back months if not years before the backlogged FDA has another qualified reviewer to assign to the case.

          Next: I have NEVER worshipped Obama. I have, however, taken Trump worshippers to task for casting the prior administration in a completely untrue and misleading light while blindly accepting the unending insane lies coming from the Trump administration.

          So you want to talk about shutdowns?
          Gingrich owned the 1995 shutdown (first for 6 days, then 21) and he caved. At a time of economic prosperity (and a rare moment of budget surplus), Gingrich wanted to axe domestic spending that voters clearly wanted — and that backfired. He could have worked with Slick Willie to gain wise budget cuts, but instead he tried to take a hatchet to programs that voters backed Clinton on.

          In 2013, the republican led congress attempted to pass regulation gutting the ACA over 40 times, and failed each time. No real progress on any other issue was made, as the political prima donnas from the extreme right wanted not to tweak healthcare to make it more accessible and affordable, but rather to score political points with their base, who interestingly supported almost all parts of the ACA in surveys when the word “Obamacare” was not invoked. Rabid right wing talk show pundits got their incompetent single-issue congressmen elected in 2012, and the republican majority accomplished NOTHING for the next 8 years. McConnell was stupid enough to explain why: because his only goal was to make Obama a 1-term president. Well that shows where his constituents really rate in his mind. So as a desperate attempt to score points against Obama, the republicans of Congress refused to give Obama a budget for 16 days. Then they caved, passing a bill that in the end didn’t gut spending for healthcare (including expensive Medicare Part D that the republicans overwhelmingly passed when Bush 43 was in the White House).

          As a first order of business in 2019, he House has passed a clean budget that funds everything that the republican Senate passed in autumn 2018. But Trump has decided that his own party’s budget from last year is no good, and he needs an additional down payment for a partial wall that the Mexicans are supposed to pay for. Trump can’t show you a map where the new fence is supposed to go, nor can he show how many people crossed in those specific spots at any recent time. All the outlandish numbers Trump spouts out his ass confound legal refugees that report themselves to checkpoints, plus people who arrive via legal means (airports, etc) and overstay their visas and work permits, and so forth. His description of immigrants sounds more like a mashup of bad Steven Segal movies. Actual number of people walking across the desert is at a historic low and practically meaningless. The real crisis is humanitarian. Trump has intentionally made the asylum system unworkable for purely racist reasons — he doesn’t like any brown skinned people to enter his little fiefdom. Or to take a more global view rather than focus on what is basically a peaceful desert: the existential threats to America are nuclear-armed foreign powers and religious fundamentalists — many of them US-born. In comparison to that, central American refugees and economic migrants are insignificant risk and actually a beneficial economic addition to the US. Just ask Trump or Limbaugh’s housecleaners.

          Trump, never one to listen to intelligence briefings from actual security experts, ignores real threats and makes everyone less safe by putting federal law enforcement out of work.

          The Dumbocrats, it should be noted, have done a poor job explaining how their proposals (which have increasing republican support) will fund enhanced security where it matters, at much lower costs to taxpayers. This includes additional border officers, drones, better airport security, reforms to asylum procedures, etc. They know that as long as the prevailing wage in the US is multiple times what it is in other nations, there will ALWAYS be go-getters willing to work hard for an opportunity to make a good life for themselves. Not unlike the original European pilgrims who invited themselves into the New World and took whatever they wanted without paying fair market value to the First Nation peoples who had inhabited the Americas for millenia.

          Fearmonger Trump pleads that Americans are suffering. A sane person with a shred of empathy for human beings would say: how many children have to die in your desert detention camps before you improve your immigration process?

          Wrong, Dave, I am not in favor of dysfunctional government. What I am in favor of is reform to a broken government — and that’s not what this administration nor hardly any republican or democratic congressman for the last generation has offered. Are you are not in favor of a working government that places people before party?

    2. That’s not likely going to happen. There are probably dozens of companies trying to crack that problem with dedicated devices, so Apple’s odds against them figuring it out using a multi-purpose smartwatch are quite high.

      Absolutely no one thinks Apple has a snowball’s chance in hell of beating other companies like Alphabet or Amazon by offering a non-invasive blood-sugar measuring device. If there was even an outside chance of that happening for Apple, the P/E would be much higher than it is. Currently, Apple’s P/E is abysmal for a major tech company. Apple has nothing positive going for it as far as Wall Street is saying. Again, Apple is a company flush with cash and yet being summarily ignored as having any value. Something is seriously wrong with Apple.

    3. I guess MDN is very interested in ensuring that certain improvements that Apple could make with their maps program don’t hit the light of day. Kinda pathetic to see them remove an on topic post with no ad hominem attack, but not surprising, after all they are from Apple’s home nation.

    1. Fire Eddy Cue.
    2. Convince Phil Schiller to retire gracefully.
    3. Put a clause in Jeff Williams’ contract that says if he misses another shipping date, he’s terminated immediately and forfeits his RSUs.
    4. Then resign and go virtue signal to your SJW heart’s content with the $600 million Apple overpaid you to be a caretaker CEO while you failed to take care of the company and many of its product lines.
  2. I never like watching Tim Cook give interviews, He always seems to have his hands together as though he is praying… praying for someone to believe in what he’s saying. Most of the time I avoid listening to his interviews because they don’t mean anything. Big investors don’t give a damn about Tim Cook. Tim Cook is forever talking about the future of Apple but he’s not going to reveal anything worthwhile because that’s how Apple is.

    I’m quite fed up with Apple’s excuses after losing nearly 40% of its value. Apple is always taking these huge hits in value despite having such a low P/E. It just shows how investors have no faith in the company or how it is run. I’m forever hearing financial advisors telling investors to sell Apple to buy some other stock like Microsoft, Amazon or Alphabet as they perceive Apple has no revenue growth to speak of. Apple is nothing like Amazon. Amazon is always trying to dominate markets while Apple would rather settle for small percentages of any market. That doesn’t even make a lot of sense to me. Apple should at least try to take over 40% of a market and not settle for 5%.

    I’m just saying these things out of frustration because I can’t understand why a company with so much cash can’t do things to hold up the company’s value. No major tech company got hit as hard as Apple, so Apple must be doing something unusual that scares investors away so easily.

  3. Pipeline wouldn’t be in this problem had he updated his sku’s on a regular basis. Apple is a small SKU company and if you’re going to ignore 90% of them , then yes you’re going to have a problem when that one sku falters.

    Seriously, who doesn’t update the premier Computer in your company for 4 years and still try to sell it at top dollar?

    1. First, mathematicaly completely untrue!
      Second, Apple’s singular quarter issue is mainly from iPhone sales in China.
      Plus according to the revised guidance and statements from Apple the other products are actually showing growth.
      Check the numbers, its just math. No conjecture needed

  4. It would be nice if they’d win back customers’ hearts and minds. Investors, analysts, and Apple themselves are so epically missing the point I don’t know what to say. The bottom line now rules the roost.

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