Quarterly results will again reveal what the profit model of Apple is composed of. What investors worry about is not so much how many iPhones Apple sold, but how much their quarterly results rely on one single product, which is almost unique in its industry. iPhone sales easily trump Mac, MacBook, iPod, Apple TV, iPad and App Store (the latter of which is still not profitable as far as I know) sales combined. I think what they are therefore looking out for is to move Apple to a more diversified profit model.
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Apple Forecasted to Report Record Holiday Quarter Amid Concerns of Slowing iPhone Sales
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Quarterly results will again reveal what the profit model of Apple is composed of. What investors worry about is not so much how many iPhones Apple sold, but how much their quarterly results rely on one single product, which is almost unique in its industry. iPhone sales easily trump Mac, MacBook, iPod, Apple TV, iPad and App Store (the latter of which is still not profitable as far as I know) sales combined. I think what they are therefore looking out for is to move Apple to a more diversified profit model.
I'm digging up my front lawn to plant turnips now. We're doomed. Dooooooooomed!
(Well, I'm doomed, at least. The condo association seems to think it owns my front lawn and objects to my turnip farm.)
(Well, I'm doomed, at least. The condo association seems to think it owns my front lawn and objects to my turnip farm.)
The stock drops even when investors hear the good news of record breaking sales.
Imagine if Tim Cook's team didn't sell up to expectations.
Tim Cook would be on the hot seat.
He doesn't do it for the money. He does it because he is passionate about Apple and the brand. I worked for Apple for 13 years and he is a good person who cares about the company and brand. Sometimes too slow to react to issues but overall a good person.
Put this into Consideration:
Cook earned last year about 10M in salary. He also received App 45M in bonus in form of stock.
for one year, he has earned an estimated 55M. Lets for giggles (because we all know he's not paying that much tax) say he's actually paying 50% tax on everything. He's taking home 27.5 Million at the end of ONE YEAR.
most of the "99%" will not likely even earn 1 million in their lifetime of work.
SO yes. for his salary, I'd do his job for a year or two and then leave. you can EASILY live off that. In fact, at a certain point you reach a threshold where you have to start actively searching for ways of spending.
Though, I'm not saying he's not worth a lot of money. Look at how he's managed to steer Apple. Its most profitable time ever has been under his leadership. He's a master of supply chain and has definitely (IMHO) earned his position as CEO.
I can argue this is true. However I wouldn't call it greed. The iPhone changed the world.
Apple is smart with their money - thick margins have kept Apple robust and safe from crippling lawsuits and put itself in a position to (hopefully) change the world again with its car project.
Only professionals could come to that consensus.
I think Tim is a good person too, don't get me wrong.
However, to say he's passionate... I'm not sure about that. Look at the differences in the presentations between Steve Jobs and Tim Cook at the keynotes.
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I'm not saying it's easy to run a massive, rich company like Apple.
But of course Apple will be more profitable than ever when the company pinches pennies way more than they used to under Steve Jobs. Heck, Steve Jobs gave out bumper cases to fix problems, and lowered the price of the iPhone after a year or two.
I don't have to imagine. If "money and greed" weren't in the picture the state of the art "smartphone" would look like this:
Plant some spaghetti squash, That'll drive them nuts!
In the past this is sort of true.
Profit is healthy for any and all companies. You need this margin in order to plan for the future and to have safety measures for when you might not hit forecasts. If you're not earning profit, you're either a charity, or doing something wrong (though, there's usually a period for any startup where profit is put on a backseat to getting off the ground)
But at a certain point, it is pure greed. When you start earning record profits every single quarter, But also insist on jacking up prices to hit a specific profit margin purely for the benefit of Stock Market billionaires, and only a very, Very tiny group of already rich people are the only ones who are profiting, I question the companies motivation.
Apple has long past hit a point where they need 45% minimum margins in order to "just survive". They've got enough cash to maintain their current Business operation for a good decade, even if they stopped making any profit. Thsi SHOULD result in lowered expectations for that 45% profit margin. Except, unlike most other companies, Apple isn't allowed. Whether this is because of Stock Market manipulators, Or extremely overly greedy board of directors, we don't know, But the last time this sort of mindset was standard, Apple was synonymous with "Apple Tax" and was regularly featuring devices that were significantly pricier than their competition, while not offering nearly the same advantages. This is not something I think Apple wants to repeat.
Okay I will give you his on stage persona is not the best. He does have passion though. His emails to employees and messages are full of passion. You're right though, Steve had that persona that made Apple what it is. Tim does lack that charisma.
Usually his messages are for publicity, or they're fake enthusiasm.
When I receive e-mails from my co-workers and executives at work, they're full of energy, but the truth is, they're just normal everyday people.
Tim Comes across as an honest person when talking about things that he cares deeply about. I think he genuinely cares about the health of his company. I think he has definite love for his social agendas and He comes accross as a very honest man.
But his lack of charisma, especially when talking about Apple products comes accross as sad. Steve had a charisma, so when he called things "Magical" and used buzzwords, it sounded honest and legit, like a good salesman,. But when Cook repeats that stuff? he sounds like a slimy salesperson, Not a good one. the RDF comes accross thick in his speaking. Something most people didn't pick up from Steve (even though it was there)
There are headlines out already that Apple will report lower iPhone sales, so the spin has already started. If/when they report record setting sales, there is no doubt that it will be spun as lower than what some analysts predicted and more doom and gloom about Apple's future will be the result. Add to it the headlines about the Apple Car issue and Apple stock will be shorted yet again.
It's such a game with Wall Street analysts who will make money for their firms, regardless of whether the stock rises or falls, or whether they are right or wrong about their "predictions / analysis" of Apple.
It's such a game with Wall Street analysts who will make money for their firms, regardless of whether the stock rises or falls, or whether they are right or wrong about their "predictions / analysis" of Apple.
You know what bothers me most about the Stock Market wall street people who do this?
it doesn't benefit Apple in any way either. Thats the sad thing about these manipulators. Most people don't realize that once the stock leaves Apple's ownership, Apple doesn't get a single penny from it. There's no more investment going back to Apple from the subsequent private sales of the stock. Buying Apple stock on the stock Market doesn't invest money INTO Apple.
These wallstreet analysts are playing an expensive game, that only very rich people can really participate in, and Actively, using large sums of money that regular joes can't use, manipulate the performance of the stock market.
When will we stop obsessing over impossibly endless and unsustainable growth and start to appreciate good, stable, comfortable, and long-lasting business?
When we eliminate the dependance on Commodity and stock trading as the largest means of profiteering by a group of rich billionaires who demand it.
I was more referring to people being driven by passion rather than money...I don't have to imagine. If "money and greed" weren't in the picture the state of the art "smartphone" would look like this:
If you float your stock to the public as a way of raising money you are beholden to same. I'd rather join 'em than beat 'em.
There are two fundamental problems with how things like earnings reports are interpreted and covered in the financial news media. First, actual performance always takes a back seat to performance as compared to market "expectations," which are based on a whole lot of guessing and narrative feedback loops. In this instance, Apple could report record profitability, not just for Apple but for any company, ever. Nonetheless, if they fall short of market predictions (while making record profits), then it's somehow reported as a failure. That is, of course, insane.
Second, year-over-year comparisons are also nonsensical. Statistically, two data points do not represent a trend. Two points are statistically "insufficient data," yet all financial reporters mark a point with the current quarterly report and another point at the same quarter from a year ago, draw a line through the two and then run around with their hair on fire based on the assumption that this line will extend straight on to the end of time. This is also insane.
In reality, all the hoopla created around this sort of financial reporting is just an entertainment industry serving financial morons. It's unfortunate that those morons then use that entertainment fluff to inject irrational volatility into financial markets that can then have actual impact on real people's lives.
Second, year-over-year comparisons are also nonsensical. Statistically, two data points do not represent a trend. Two points are statistically "insufficient data," yet all financial reporters mark a point with the current quarterly report and another point at the same quarter from a year ago, draw a line through the two and then run around with their hair on fire based on the assumption that this line will extend straight on to the end of time. This is also insane.
In reality, all the hoopla created around this sort of financial reporting is just an entertainment industry serving financial morons. It's unfortunate that those morons then use that entertainment fluff to inject irrational volatility into financial markets that can then have actual impact on real people's lives.