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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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There were plenty of build quality problems under Steve Jobs too. It’s just Apple wasn’t nearly as big as it is now and social media didn’t exist to amplify things.
Just like most people's bank accounts after buying a MBP or an iPhone XS Max (or practically anything Apple, actually!)...
Because the Chinese market really isn't the problem, at least not the only problem. Its the prices going up unreasonably across the whole product line. Its users being disgruntled with soldered on SSDs and RAM (not to forget glued on batteries.). Lack of interfaces (USB A. SD Card). Going backwards at times (Mag Safe).
And its the sole focus on iPhone sales while neglecting other product lines, in particular the Mac. Its the lack of diversity. No, this is not about China. Its about failure on the management part, lacking innovation and locking down hardware in an attempt to screw the customer.
The failed revenue target is hardly a surprise. Its actually as expected. And I'd be surprised if this trend would turn anytime soon
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The quality and innovation is still there. We can't help it if Intel couldn't deliver the cool six core chips we needed. ARM will solve that.
The Touch Bar is used by many people but yeah should be an option.
Apple's prices have risen because they have some smart people who know that we live in volatile times with unhinged politicians. If companies don't keep their profit margin high then they will be hurt by the political shenanigans happening right now. Look how many famous retailers are being damaged.
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Ouch, everyone should have seen this coming. When a company makes their most money on smartphones , and less and less people upgrade that device every year. Most people don't upgrade their desktops, laptops, tvs, cars, etc each year. Same is happening now with smartphones as the reasons to upgrade are dwindling especially with the price hikes.
"The company has lost about $450 billion in market value since its peak of about $1.1 trillion last year."
"The company has lost about $450 billion in market value since its peak of about $1.1 trillion last year."
I’m going to take a guess that Tim Cook knows more what the problem is than you do. You’re basically projecting your gripes on to this announcement when there isn’t hard evidence to support it.
Hard evidence like what?
Sure, its all opinions. Sure, the Chinese market may have left something to be desired.
But if you follow this forum you'll notice: never have there been so many statements actually agreeing on Apple's pricing going astray.
People have been waiting for years for an upgraded Mac mini. People still wait for a decent Mac Pro. Speaking of: the actual Mac Pro is now 5 years old. Now that's unbelievable, don't you think?
There is no doubt that Apple missed to diversify its product line. It was to be expected that the smartphone marked one day reaches saturation. Apple's approach to mitigate this - increasing prices - clearly failed.
And it seems there is no plan B.
If Tim Cook is so much more knowledgeable - why did this happen? Apple's customers actually beg for product updates, more than willing to spend their money, but Apple denies to deliver. Or delivers products so crippled that even the highly loyal Apple customer denies purchasing.
THAT is evidential.
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Not if that 35% drop was irrational. Nothing has happened to Apple that would justify that drop. Even with this downturn, they absolutely print money. APPL trades at far less than it should based on Apple’s earnings. They are irrationally held to an insane standard that somehow doesn’t apply even to stocks that should be comparable, like Amazon.
The news isn’t good, but Apple’s profit in a bad quarter is still the envy of the industry.
I tend to believe the numbers posted by Apple indicate that more potential customers follow the path discribed.
Anyway, we'll see what the future brings. My guess is Apple will continue to miss targets unless they fix their products/prices. This should be easy to do, question is if they are willing to...
You do remember that point in 1997, when–barring a $150 million cash loan from Microsoft that Jobs had to personally ask Gates for–Apple was about to declare bankruptcy? That loan also negotiated away Apple's right to sue Microsoft over macOS copyright infringements. Not exactly a winning position to be in.
Not true. The 150 mio investment DID NOT SAVE APPLE. It is an often repeated myth - a myth nonetheless. When MS invested, Apple still had about 1.2 bn $ cash reserves and would very likely have survived anyway. (also see https://www.cultofmac.com/567497/microsoft-investment-saves-apple/)
Steve Jobs later commented that this investment did not save Apple, but it certainly helped by supporting customer trust in the Apple platform (which was SJs intention behind the whole deal in the first place).
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Yeah the “trade war” is exactly why me, my wife, my mom, my friend and his wife all didn’t upgrade this year. First time ever we didn’t upgrade after a 2 year cycle.
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I whole heartily agree.
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Cook gave a whole list of reasons for the revised guidance, it wasn't just China. Lack of carrier subsidy, battery replacement programme and exchange rates were all mentioned.
https://www.apple.com/newsroom/2019/01/letter-from-tim-cook-to-apple-investors/
You would be buying shares if what? If you had money? If you were currently on Earth? If dogs were allowed to make stock purchases?
I would never take investment advice from someone who started a sentence "I'd be buying..."
Yet they couldn’t make a sturdy iPad Pro.
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Apple is boring. Boring outdated design. Boring tech for a huge premium. Apple's last great phone was 5 series. And last innovative tech was the airpods. Everything else is just catch up.
Apple doesn't have a pricing problem. People will PAY if the product is new/different/innovative/exciting.
Apple has an innovation problem.
Apple doesn't have a pricing problem. People will PAY if the product is new/different/innovative/exciting.
Apple has an innovation problem.
Apple needs to do something, but what is that something? I haven't heard any great ideas. Lowering iPhone pricing and the need for further services are certainly actions they can (and probably should) take, but nothing that will meaningfully move the needle. There's just no other technology that's ready for prime time for them to shift focus to. AR, VR, self driving cars.... all are years away. PC computers (Mac Pro, iMac, MBP, MBAir, MB) just don't make that much money. 75% of their money comes from an iPhone in a saturated marketplace. They can make it out, but it's going to take multiple products that are lower risk like an actual Apple Television Set, wireless headphones, AirPower, and possibly some smart home stuff (though I'm less bullish on the smart home).
If I I didn't already have several thousand shares and a new purchase of 4 digits pretty recently. I put my money where my mouth is. I bought some shares a little too early, but I have a lot way below $100 too.
When you are spiraling down, it's sometimes best to crash and rebuild from the pieces that are left.