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AAPL Opens at $144, Sliding Nearly 10% After Major Revenue Cut and Down 35% Since Early November
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Apple can't really help it with China. A lot of companies struggle to gain foothold in China. It doesn't help that the economy has slowed down a tad and that the markets are going through correction phases. However, I do think Cook is an excellent CEO if Apple were to be focused on profit from here on out. I do believe under Cook's leadership the company has strayed a little from their old values which were to make high quality products that lasted longer than their competitors. That they were simple to use, yet powerful and elegant.
Apple doesn't need another visionary like Steve Jobs. It needs a CEO at the helm who understands what made Apple successful under Jobs. You don't have to invent a new product. But you can take a not so successful product made by others and come up with your own twist on it, bringing the unified experience of the Apple ecosystem and much more.
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Apple doesn't need another visionary like Steve Jobs. It needs a CEO at the helm who understands what made Apple successful under Jobs. You don't have to invent a new product. But you can take a not so successful product made by others and come up with your own twist on it, bringing the unified experience of the Apple ecosystem and much more.
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If Apple still maintains their secret "skunk works" division within corporate HQ, I wouldn't be surprised if they've trialed such endeavors.
Do you even know how stocks work LOL? I would say it is almost a perfect time to buy Apple stocks, i would wait a little longer though as i think it will drop a bit further before making another run.
The bear market is the best time to buy for a lot of these stocks. Thank you 2008. Bought a ton, set a trailing stop %, and looking to jump in again 2019.
Apple needs to abandon the iPhone, the iMac, the watch, the macBook, the airpods, etc, and focus solely on services. It will not survive if it does not. Apple is bleeding to death.
An innovating problem? Rather, not innovating what matters to their users. Most, use less than 10% of the potential of the iPhone. And, how they use it may be adequate on a $200. smartphone. Except for gadget lovers, there's no justification to pay the Apple-structured prices point. How much you're willing to pay to be in Apple ecosystem.
Apple prices went up substantially in 2018.
+ the strong US $ vs most currencies
+ all the issues mentioned on Macrumors
finally Apple hits the wall.
When you're close to bankrupcy, you become extremely focused, which is not the case here. Will Apple wait 'till it really hurts before reacting.
Within Apple, is there a disruptor that may revitalise or shake things up while the company is still in good shape.
Apple prices went up substantially in 2018.
+ the strong US $ vs most currencies
+ all the issues mentioned on Macrumors
finally Apple hits the wall.
When you're close to bankrupcy, you become extremely focused, which is not the case here. Will Apple wait 'till it really hurts before reacting.
Within Apple, is there a disruptor that may revitalise or shake things up while the company is still in good shape.
Ever since Tim Cook's Orwellian speech, I couldn't give a damn. This man and his company need to be taken down a peg or ten. It's not about his politics, it's about his absolute HUBRIS thinking Apple is so goddamned important that his importance somehow rises above providing a product people want to buy.
The quality of hardware going ever southward. Apple should have split into two divisions to serve professional and consumer needs, but instead they just went full i-**** and because they have pushed the company so far into producing low-order goods (those closest to consumption) that they have become easily replaced with the next fad. Got an iPhone? Who the hell cares? Consumers are fickle, and Apple took a **** on the professionals who actually produce wealth. Now all it will take to absolutely destroy the company is a slight dip in disposable income. Well done Tim Cook!
Where is the TiPB, XServe, or hell, PowerMac? Long, long forgotten. The software side is even worse. I half expect the next version of OS X to have a built-in cat-video-search app. Absolutely nothing Apple makes these days matters.
The quality of hardware going ever southward. Apple should have split into two divisions to serve professional and consumer needs, but instead they just went full i-**** and because they have pushed the company so far into producing low-order goods (those closest to consumption) that they have become easily replaced with the next fad. Got an iPhone? Who the hell cares? Consumers are fickle, and Apple took a **** on the professionals who actually produce wealth. Now all it will take to absolutely destroy the company is a slight dip in disposable income. Well done Tim Cook!
Where is the TiPB, XServe, or hell, PowerMac? Long, long forgotten. The software side is even worse. I half expect the next version of OS X to have a built-in cat-video-search app. Absolutely nothing Apple makes these days matters.
Everyone likes to talk about the “services business” but really those are just as ones for the hardware. In my opinion, this is no real, future-proof service business.
What Microsoft and AWS are doing (among others) is a real service business. You don’t need Windows or surface devices to use Azure. You dont need Echo or whatever to use AWS.
But Apples services are basically made up of cloud storage for their hardware devices, damage protection for their hardware devices, Apps for their hardware devices and music for their hardware devices.
The only “real” service is Apple Music because that at least works on android and is not completely dependent on the hardware.
Indeed. The iPhone has become little more than a glorified dongle at this point.
Well said, I think Apples customers are so fed up with them not listening to what want and need in their products it eventually drives people elsewhere, never mind Apple thinking they are a fashion company and their customers will pay any amount they decide to charge. You can only push people so far before they say enough is enough.
Marissa Mayer tried spending binges to save Yahoo but they did not impress anyone. The brand is becoming fatigued by Tim's lavish spending. Louis XIV had a similar problem and the people rebelled against his legacy.
Marissa Mayer is a good example of how exceptional Margaret Thatcher was.
1) Margaret Thatcher would never have provided pretenses about Yahoo's need to shed some dead wood. She would have boldly made the decision to reorganize and fire people and do it in the open instead of acting like the ***** Gestapo. She also made clear that if something wasn't making the nation money, like coal, the rest of the nation wouldn't be on the hook to subsidize it. Mayer kept 'diversifying' in a million directions and no profits to show for it. She treated stockholders like some disreputable politicians treat taxpayers.
2) Thatcher would have never offered retention bonuses. She knew the value of not pissing off employees who wanted to work for Yahoo, as opposed to those who had to be bribed to stay.
3) Thatcher made the agenda clear for everyone instead of constant dithering Mayer was known for.
4) Thatcher would never have talked about a 'four year plan' or some other stupid timetable despite the fact a politician's term isn't unlimited. Mayer often sounded like frikkin Mao with her great leaps forward.
5) Although fearsome, Thatcher didn't rule through fear. She explained her positions and strategies and even listened to her cabinet on occasion. She stood firm against adversaries, but didn't treat any Ministries like one. Mayer did the opposite.
6) Thatcher knew when it was time for her to leave.
Mayer was just a crap leader overall. She also sounds like a turkey when the laughs, which was her only positive characteristic.
[doublepost=1546590544][/doublepost]Oh, and Thatcher would have never hired Katie Couric. I still don't get what that was about
At $120 Apple will be at P/E 10. Apple has ~$240B Cash, ( $150B Net Cash but not important in this context ), @$120 Stock that is 40% of Cash alone. If I had the borrowing power of Warrant Buffet I would have borrowed $300B to grab the 50% controlling stake in Apple.
It will be beneficial for Apple too, currently Apple doesn't have a single majority shareholder. Having Berkshire Hathaway as a long term shareholder will be much better for Apple in the long term.
Apple is largely dependent on one product, the iPhone. The iPhone is currently showing problems in China and India, markets Apple needs to show growth and it may be that Apple won’t be able to respond in a timely manner. No one knows what the Trump Administration is planning with regards to China. The new Secretary of Defense gave a speech to military brass that could be interpreted as full steam ahead vs China. So, investors are not going to go all in on any company as potentially vulnerable as Apple is to either China or America politics.
If we assume War, then Apple isn't the only one that will have problems. And its latest results shows, despite Greater China dropping 50% YoY, Apple still manage to loss only 5% of its projected revenue. That is pretty resilience if you ask me.
Edit: Is there a Video link of that speech? Cant find anything on Google.
The news is definitely not good, but as you’re basically alluding, the stock price will end up being “corrected” back up in due time, because all the numbers are too incredible for the market to ignore the fact that AAPL just plunged 35% because some people get jumpy!!
I really don’t think it’ll take long. It may take 3 months, it may happen when they call a trade war truce with China that people are confident will stick, or maybe when Trump is finished.
For anyone thinking about buying AAPL right now: Nobody can tell you whether this is the absolute best time to buy AAPL right now, or even a good time to buy. However, it’s certainly not a BAD time to buy. Maybe wait for earnings report to see if the price dips a bit?
You just asked someone to, somehow, justify irrational behaviour. It’s irrational because it cannot be explained with logic.
Company just posted an $84B quarter. But I get it..you don’t like the mac side of the house. I dont really care about the mac side of the house.
It took Tim to grow apple to the powerhouse it is today. The board sees fit to keep him on. That’s all I have to know.
This sounds more like a SJW's wet dream more than an actual business case. There's nothing about her that says that she can be a tech visionary for Apple. Considering all of Apple's recent marketing and retail decisions I question whether or not she's doing a good job in her current position.
With the benefit of hindsight, we know that sales back in the 2012/2013 time frame grew. However, back when the stock crumbled, Wall Street feared that iPhone sales had peaked and were on the way down. It was all the same talking points that have been trotted out over and over the last several years. Maturing smartphone market, competition from low-end, etc.
Right now, we know that both unit sales and revenues (for iPhones) are down for the quarter compared to last year (Q1-2018). Apple stated that more than 100% of the decline (for the company, not just iPhone) was due to the shortfall in revenues for China. The rest of the regions did fine. One can extrapolate that iPhone revenues for NA, Europe, SA, Africa and Asia (minus China) met or exceeded expectations. It was just China that killed the numbers. I'm not saying that it's not important, but looking at the big picture, the rest of the company is fine.
So how to fix the China problem? No idea, but I'm not an MBA or an Apple employee. I'm just looking for answers to the question "why". What's different about China this year compared to last year? Certainly there is a political component, although the tariffs shouldn't directly affect iPhone sales as they have been exempt. However, there is a social component from the trade tensions that perhaps is affecting sales of American products in China.
Or it could be that the Chinese market really wants new products every year and the Xs isn't new enough for their liking. It looks just like last year's model.
One other thing is that it could be that China's economy is slowing and they're spending less on product across the board. I'd have to look at the numbers for Apple's competitors in China, but this could be a reason too.
And? The installer base grew another 100M in the last 12 months.
Installed base does not shrink just because iPhone sales contract some. That’s not how it works.
People conflate the ideas of shrinking user base with not upgrading iPhones. Completely false, as seen in the installed base continually rising significantly.
I trust I don’t need to explain why the user base grows despite some iPhone unit sales contraction.
And Apple got that kick back in 1995. Whats happening now is exactly what happened in the mid-90s. Bean counters trying to milk a tech company. Bean counter strategy works with some tech. companies like Dell or HP printers but what differentiates Apple-the loyalty of its customers and acceptance of the higher price-is that Apple was a company that made tech. convenient to the average consumer. It just works!
I can not say this to the current Apple product line as it confuses people from naming, specs, GUI, and everything else. One area Apple really dropped the ball is OSX, its mostly the same now with few new features but nothing that makes it better for the average user. You no longer see features like Spotlight, Automator, Dashboard...etc . In fact, I would say a lot of the iSuite today is less capable than the competitors than it was 10 years ago.