"This story is a great demonstration of my maxim that any headline which ends in a question mark can be answered by the word "no." The reason why journalists use that style of headline is that they know the story is probably bollocks, and don’t actually have the sources and facts to back it up, but still want to run it."
The only tenable premise here is that the market had priced ridiculous future growth into Apple, which is now leaking out due to reduced confidence in same.
The problems are: Apple's valuation was never optimistic (rather pessimistic compared to peers).. Apple's growth has barely slowed since Cook took over (we'll know more on Tuesday), but regardless Apple is still well ahead of the rest of the industry.. And the "fix" would be to bring in someone else who would restore the market's faith in Apple's return to ridiculous future growth...because there's a single CEO anywhere who could do that.
Apple's board is too smart to whipsaw around due to quarterly market drama. Cook is the right choice, though not alone. The mgt team at Apple is solid.
Sentiment is fickle and temporary. Numbers will eventually rationalize. Apple can afford to wait.
When will people stop paying attention to Forbes and their badly vetted contributors? I'm as foolish as anyone, every time I get linked to a Forbes piece and only while reading it do I remember how bad most of their content is.
As pointed out by one comment on that piece, the biggest error the contributor includes is "Apple’s stock has lost about half of its market value since October 2011, when he took over as CEO". In actual fact, Cook took over as CEO in August when the the price was $376.18, lower than it is right now at $390.53.
I'm sure there are arguments to be made that Cook should be replaced (not saying they are or aren't the right arguments), but they shouldn't be made by someone who screws up the facts that badly, whether it was a mistake or just talking shit to fit his story.
> The Street’s bullish stance is astonishing considering that some $290 billion of Apple’s market value has been wiped out in just six months. Of the 37 analysts from major securities firms who follow Apple, none has downgraded the stock to a sell, according to available data from MSN.com. But 25 of them still recommend the stock as a “strong buy” and six others rate it as “moderate buy.” Another six Apple watchers rate the stock as a hold.
One of the chief reasons why these analysts continue to favor the stock is Apple’s huge cash pile, estimated at more than $137 billion, and what the company could do with it to win back the thickening crowd of disappointed and displeased investors. And strong demand for Apple’s innovative products has continued, led by the iPhone and iPad. And speculation persists that soon Apple will announce another new must-have product, which should help the stock recoup its sharp decline.
So essentially, despite no good reasons for the price to drop, the stock price is dropping because analysts are afraid the stock price is dropping regardless of what the company is actually doing. Now, because of that, those same analysts want to get rid of the CEO that basically engineered Apple's ability to make ridiculous margins on through their operating systems efficiency. This is absurd. Does anyone else want these analysts to just shut up?
I dont really think they do. Apple is smart enough to know that no other CEO can turn that trend around. Its not the CEOs fault anyway, how can anyone follow up Steve Jobs run without the hyped stock price taking a hit?
They still have been tremendously successful in the last 2 years but stock price is irrational anyway. I doubt there currently is anyone with similar experience and understanding of Steves vision than Cook. Some might say Ive, but i dont think he is the type of guy for a CEO position of this size and he already is at the very top of the company anyway.
The hilarity of all of this is that the current product pipeline was signed off by Steve Jobs whilst he was alive. And the same people (except for Forstall) are still there plugging away.
But that said Apple just needs to follow the iPod strategy for the iPhone/iPad and they will continue to pour in the cash. By that I mean products at lower price points but still maintaining the same premium aesthetic.
Also I would stake my life that Apple WILL release a TV. But it will be 4K and coincide with a "H.265 across the company" strategy.
Totally agree. I believe they're waiting till 4K reaches a price that will sell - which is just beginning to happen ( http://www.engadget.com/2013/04/15/seiki-offcially-prices-it... ). It's the only realistic way they can offer a future-proofed device that will look great for an extended period of time as more 4k content becomes available.
One of the things the punditry never stops to deliver is flip floping following the trend. Apple is no different company now that it was a year ago.
While apple bashing is all the rage now, the (supposed) problems it is having are the same as the day Cook took the office.
While I would enjoy tremendously the fall of apple (and any other walled garden) I would prefer too see it on the basis of failed ideology than mass market psychosis.
http://en.wikipedia.org/wiki/Betteridges_law_of_headlines
"This story is a great demonstration of my maxim that any headline which ends in a question mark can be answered by the word "no." The reason why journalists use that style of headline is that they know the story is probably bollocks, and don’t actually have the sources and facts to back it up, but still want to run it."