Ron Johnson: Apple stock is the best buy you can make ‘for the next decade’

“Apple’s former retail chief, Ron Johnson, told CNBC on Wednesday that the tech giant’s stock is still a great bet for investors in the long run,” Tyler Clifford reports for CNBC. “‘I can’t imagine a better buy for your portfolio for the next decade,’ said Johnson, founder and current CEO of Enjoy, which aims to merge online convenience with personal shopping services for tech products.”

“He said he owns the stock. ‘I’m long. I love Apple,'” Clifford reports. “Shares of Apple, which has been in the hot seat in recent months due to slowing iPhone sales growth, is down about 12 percent over the past 12 months and off more than 30 percent since its all-time in October.”

“Johnson pointed to a silver lining in the results of the battery program. ‘Those 10 million didn’t upgrade their phone,’ he argued. ‘Next year, they’ll be ready, right? Apple’s a great buy,'” Clifford reports. “Leading Apple’s retail division from 2000 to 2011, Johnson designed what’s considered among the best retail store strategies in the world.”

Read more in the full article here.

MacDailyNews Take: Again, units don’t matter. There are only so many quality users on the planet. Keeping them happy, as every measure of customer satisfaction shows Apple has amazingly well done to date, is what matters. As long as the users buy apps on the App Store, subscribe to Apple Music, add iCloud storage, use Apple Pay, etc., they can replace their hardware with Apple hardware at their own pace.

Yes, the iPhone replacement cycle is lengthening, but with so many iPhone (and iPad) users and with customer satisfaction so high, it really doesn’t matter. The market is mature and there are only so many quality users on the planet. Apple has that market cornered. The types of people who’ve settled for Android aren’t likely to buy as many apps or subscribe to services. They want free. They’re not worth much after the sale. The iPhone knockoff peddlers like Samsung can have them.

This is, of course, Apple’s point with ceasing the reporting of unit sales. It’s the user base, the quality of the user base, and services that matter more now. That’s where the growth is and where it will be for many, many years to come.MacDailyNews, January 5, 2019

14 Comments

    1. Continuing to rip off Apple consumers is the one and only plan that Tim Cook has had for the last 8-years.

      What investor wants to roll the dice on a guy who is willing to squeeze his golden goose by the neck until he strangles it to death?

      Cook’s own uncontrollable greed and apathy has painted him into a corner and there’s no where else to go except downhill from here.

      If the shareholders don’t vote Cook out, this stock will dip below 100 this year.

      1. I keep buying Apple products and don’t feel ripped off at all. I like the products, and the service I have received from Apple in the cases where I’ve had a hardware problem, for both iPhones and Macs, has been outstanding. In the case of phones, they usually replace them for free (even without Apple care), and on Macs I’ve had several hardware repairs they’ve done for free. All very convenient at my local mall Apple store. All of that has value to me, compared to buying ANY other tech brands where support is non-existent at the consumer level.

  1. I would love to see Apple’s roadmap for the 2020s.

    All of their 2015-ish plans (self driving car, Netflix rival, etc) have to have fizzled out.

    I love apple but where do they go from here? They build amazing hardware, how will they capitalize on that going forward?

    1. That’s a great question. My best guess is that they are going to make a big play in alternative energy, starting, but not limited to battery tech. I also doubt that they will every be stupid enough to build a car and will instead make car tech. I strongly believe the Apple Watch is their next big thing and as soon as it expands its cardiovascular capabilities and ability to store health data on your phone, it will take off to the stratosphere.

  2. I think his opinion is ridiculous. It’s likely Amazon will be worth twice as much as Apple if Apple continues trying to sell iPhones at such high prices. Even as a long-term Apple shareholder, I think Apple has lost touch with reality. I’m willing to wait and see Apple what Apple does with Services but I don’t think Wall Street will accept it.

    Apple has been around a lot longer than Amazon and Amazon is now worth more than Apple by almost $100B. Apple doesn’t seem to be trying to dominate any particular market. Bezos seems to know what he’s doing while Tim Cook doesn’t. I only say that because Tim Cook seemed to be blindsided by the drop in China’s iPhone sales. Apple was putting too much reliance on iPhone sales when they had enough money to diversify into other businesses. Apple will never be able to sell privacy and security to consumers when iPhones are so expensive and only a small percentage of consumers can own them.

    Wall Street has great confidence in Amazon’s future and not so much in Apple’s future, so I don’t see why big investors would take the chance of owning a stock that crashes every couple of years. That’s just my personal opinion. Apple’s iPhone business looks to be in shambles. Android smartphone sales just keep climbing endlessly because they’re so cheap to buy. Buying Apple stock at this point just seems quite risky with no significant upside I can see.

    1. I wouldn’t. Tim may be bad, but I would never vote to replace him unless that vote was to replace him with someone that can do better. You might get someone who takes to heart what Steve said about PostPC and “milking the Mac for all it’s worth” and do JUST that. Or just take a huge salary, run the company into the ground and make off with a nice windfall.

      You think the current leadership doesn’t care about your pet projects? Any new CEO from the outside might care even less 🙂

      1. Tim is not bad…. Tim being bad is as far from the truth as anything can be.. its actually ludicrous!
        Stats are there to prove it.
        What he has archived is no joke …. may not be some people’s idiosyncratic ideal … but never the less great by any busness standards!…and beyond!!!

        If one does not like him personally.. that does not make him bad.

        ‘MOST’ those who think he is bad, so far in my exorrisnce, have been those who dont even have a clue what it takes to run a lemonade stand let alone Apple.
        Or haters who get a kick of their asinine cherry picking.
        Or disgruntled pros or shareholders… discounting the grand scheme of things and looking at things through their very limited tunnel vision.

        Lets keep in mind , there were issues at Steves time,, there are issues now, there will always be issues.
        Perfection belongs to lala land.

  3. Could not agree with him more. I have been posting the same sentiments for a couple months now… and getting bashed by the whiners in return .. (we all know who they are)
    These discounts offer incredible opportunity for making some seriouse gains in the long haul. Ofcourse if one is a beliver in the company…..I am !.

    And lets not forget the impact of these massively discounted share prices on Apples buy back program..
    They can buy and retire aprox 30% more shares at these prices than they otherwise could.. all of which will help boost EPS even further which will directly effect the stock price positively for all shareholders.

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