Apple Is 'Ungodly Well-Managed,' Billionaire Investor Says

[Lounge vibes 05]

Steve Jobs was absolutely against a stylus for the iPad

I see we’re still going with this myth.
Steve Jobs said “who wants a stylus” when referring to the original iPhone, and he was talking about other touchscreen devices at the time which *required* a stylus as their main input.
He was not talking about an accessory for a tablet that could be used for artistic purposes.
He was talking about a stylus that you pretty much needed to use the device, which, I think most would agree, was stupid, clunky, and was very easy to lose.
The Apple Pencil is none of these things. It’s not clunky… well that original charging solution was odd, but it’s not required, it’s not necessary for the product to be used, it’s completely optional, and it’s fun to use.
Let’s stop taking this one quote out of context.
And by the way, despite how many people ask for it, despite all the rumors saying otherwise, to this day Apple has never made a touchscreen Mac, and has never made a stylus for an iPhone.
Also Steve Jobs very very frequently said one thing in public, and then did the exact opposite.
He said that no one would want e-books… only eight months before Apple introduced their own e-books store.
He said that no one would want to watch videos on an iPod… before introducing the iPod video a year later.
And who can forget about the App Store? The App Store that absolutely took off the minute that it was introduced. The App Store that Steve Jobs was *very famously* against.

 

[Expos of 1969]

Very condescending post. You grouped the entirety of apple customers in one bucket.

You crack me up.

From your earlier post... "Yes. I assume that 1 billion users are expressing their positive preferences and not settling."

That is one big bucket.

 

[Gasu E.]

If I own 5.5% of a trillion dollar company, I’m going to tell you its the best thing since sliced bread even if we are killing baby pandas behind closed doors.

That's random. Is there profit in killing baby pandas? If so, maybe it really would be a sign of a well-managed company.

 

[Scoob Redux]

If its an inferior phone, then how can't you find a better one. It's either inferior and you can find a better one. or Its not inferior and there isn't a better one, it can't be both.

inferior to iPhone 5 or original SE, but yes, would be better to say "a crappy iPhone"

 

[Lounge vibes 05]

There was never, ever a point where I'd say a Mac was as you describe it. The crap pile just got a little better on its own, literally copying Mac designs to the point where you saw Microsoft's VP's telling their hardware partners to copy the Macbook to create what is now the ultrabook. This isn't Tim Cook's doing, I don't know how many times it has to be said that he's not a product guy - and what that means is that he's not the one calling the shots with the products at all, for good or bad. If Jobs kept running the company, I have no doubt we'd be sitting in nearly the exact same position.

Also, adding onto what you said, people like to look back on things with rose tinted glasses.
If you actually go to the MacRumors archives, find old posts from back in the 2000s or so when most of these people say that the Mac was at its peak, you’ll find that there were very similar problems to today.
The first three versions of OS X, cheetah, puma and jaguar, were all criticized for being slow, only available on newer machines, broke tons of compatibility, not ready for public release.
Pretty much all initial launches of new software from Apple have all had their issues and people complaining, even the most fondly talked about ones like leopard and Snow Leopard didn’t have 100% smooth launches.
The weekend that Apple launched iPhone OS 2.0 the iPhone 3G and mobile me, it pretty much knocked out their servers for that entire weekend. It was a horrendous launch, for all three products. OS2.0’s The initial release was played with tons of bugs and issues and app crashes, the iPhone 3G had reception issues and speed problems that were… really never resolved, and mobile me was even so trash that Steve Jobs himself joked about it three years later when introducing iCloud.
“Well, some might say, why should I trust them, they’re the ones that brought me mobile me? Well, it wasn’t our finest hour.” - Steve Jobs, WWDC2011
So this idea that Apple used to have “bug free software” and “it just worked 100% of the time” and now “it just sucks and never works” is nothing more than myths and anecdotes.
I post this video about every time that this topic gets brought up, because it really shows just how dumb the argument is.

This was 2010. Snow leopard was the latest version of OS X, Steve Jobs was leading the company… does that look like “it just works” to you?

 

[Lounge vibes 05]

By focusing soley on money and not the customer. Thats a bad thing, fyi.

How do you think that they make money?
It certainly isn’t by pissing their customers off

 

[DeepIn2U]

Two days ago I posted on MR that Cook is the best CEO, and numerous people went bananas. I said it before, he's not a product visionary or genius, but he sent Apple into the stratosphere as a company.

If you really think Tim Cook did this all himself then YOU'RE bananas!

This team of management at many levels and the hard working individuals was already in place before hey became CEO. In fact I'd say this is just evolutionary starting with the original board that Steve brought on when he returned. Without THAT any top level management decisions and guidance would not go forward.

 

[nebojsak]

So this idea that Apple used to have “bug free software” and “it just worked 100% of the time” and now “it just sucks and never works” is nothing more than myths and anecdotes

I'm having in mind Apple the computer (primarily) company (phone was neat addition, but no deal breaker for me). OSes after Jaguar were simply not in the same ballpark with today's OSes. For me it was tools to get the work done. Today's Apple is all lifestyle and gadgets.

 

[macduke]

Tim Cook is a better CEO than Steve Jobs. That shouldn’t be a controversial thing to say on these forums. Sure Apple wouldn’t be in the position for Cook to take over without Jobs, but I don’t think Steve Jobs would’ve made as much money if he were alive today, and that’s the most important measure of CEO success in our society. Cook also seems more willing to change course if something is wrong, though still slower than most companies.

 

[Mr. Dee]

What an awful way to describe it though.

 

[Expos of 1969]

Cook also seems more willing to change course if something is wrong, though still slower than most companies.

Only if forced by the courts or by public outcry. He refuses so he can squeeze every last dollar until he has to change.

 

[Lounge vibes 05]

I'm having in mind Apple the computer (primarily) company (phone was neat addition, but no deal breaker for me). OSes after Jaguar were simply not in the same ballpark with today's OSes. For me it was tools to get the work done. Today's Apple is all lifestyle and gadgets.

Apple has always had lifestyle gadgets.
Rainbow iMacs, iBooks, iPods, iLife, iPhone, Apple TV, etc.

 

[nebojsak]

Apple has always had lifestyle gadgets.
Rainbow iMacs, iBooks, iPods, iLife, iPhone, Apple TV, etc.

That's right (apart from the first two, those were computers that actually worked well), but it was not their primary focus.

 

[Slarti.BartFast]

What I like to say about Tim and his influence on Apple is this:

Using a Mac used to feel like you were floating above the crap pile that is using technology (my objective view is that technology doesn't really make our lives better, it makes people money).

Tim Cook realized they could make a lot more money if they brought the quality down to the point where the Mac experience SITS at the top of the crap pile.

So it stinks more, but it's still the best choice.

The result: Way more profit.

I accept this, not because I like it, but because I have no choice.

Thank you, from the very bottom of my heart - my first computer was a Sinclair ZX81, I moved through Windows and discovered OS X Panther, I have loved owning Apple computers for years, I now have Big Turd and so totally hate it, once using a mac was a relaxing cohesive experience, where with the Turd it feel like Windows XP. I hate it so much I am learning how to use Linux Mint and how to root Android, I will never buy a piece of **** Apple device again !

 

[citysnaps]

By focusing soley on money and not the customer. Thats a bad thing, fyi.

No. By focusing on the many millions of customers, many repeat, who willingly open their wallets paying premium prices for the Apple products and services that make them happy and many love. All in a very competitive environment.

The money follows as a result of the above.

A good thing. And a big hat-tip to Tim Cook.

 

[bushman4]

Charlie Munger a highly respected investor is putting his money where his mouth is when he makes the comment he did
So Berkshire Hathaway having Apple as it’s #1 holding is substantiation

 

[I7guy]

By focusing soley on money and not the customer. Thats a bad thing, fyi.

Do you have one other example of a company in a non-regulated industry that produces consumer oriented electronic devices that was / is successful by focusing on profits over customers?

 

[Asbow]

What I like to say about Tim and his influence on Apple is this:

Using a Mac used to feel like you were floating above the crap pile that is using technology (my objective view is that technology doesn't really make our lives better, it makes people money).

Tim Cook realized they could make a lot more money if they brought the quality down to the point where the Mac experience SITS at the top of the crap pile.

So it stinks more, but it's still the best choice.

The result: Way more profit.

I accept this, not because I like it, but because I have no choice.

I’d say that was more in line with the switch to Intel. ARM feels a lot more like the old PowerPC days but without the heat.

 

[skaertus]

I see we’re still going with this myth.
Steve Jobs said “who wants a stylus” when referring to the original iPhone, and he was talking about other touchscreen devices at the time which *required* a stylus as their main input.
He was not talking about an accessory for a tablet that could be used for artistic purposes.
He was talking about a stylus that you pretty much needed to use the device, which, I think most would agree, was stupid, clunky, and was very easy to lose.
The Apple Pencil is none of these things. It’s not clunky… well that original charging solution was odd, but it’s not required, it’s not necessary for the product to be used, it’s completely optional, and it’s fun to use.
Let’s stop taking this one quote out of context.
And by the way, despite how many people ask for it, despite all the rumors saying otherwise, to this day Apple has never made a touchscreen Mac, and has never made a stylus for an iPhone.
Also Steve Jobs very very frequently said one thing in public, and then did the exact opposite.
He said that no one would want e-books… only eight months before Apple introduced their own e-books store.
He said that no one would want to watch videos on an iPod… before introducing the iPod video a year later.
And who can forget about the App Store? The App Store that absolutely took off the minute that it was introduced. The App Store that Steve Jobs was *very famously* against.

OK. But my general remark is that Steve Jobs had very strong opinions about how each product should be. Tim Cook is focusing on driving the company.

 

[Glideslope]

The Assimilation Continues. Raise Tim’s $92 million to an even $100 million. Let’s get Jeff up into that range as well. He does the heavy lifting. ?

 

[turbineseaplane]

Tim is an amazing CEO

He simply is not a product guy though.
That shows.

They make a lot of money, but all of the products could be a lot better in a variety of ways.

Anybody claiming Apple is doomed or claiming that other people are claiming that…are strawmanning

 

[turbineseaplane]

At the end of the day, Steve Jobs selected him for a reason.

Yeah. He was familiar with him, and he was already right there…and Steve was dying.

Let’s not pretend there was some worldwide search

 

[darcyf]

Positions change. If I lost confidence in it, and intended to get out, makes sense I might bolster it a bit. Like that has never happened in the history of publicly traded companies….give me a break.

And I’m sorry but, in part, yes that‘s exactly how you get and STAY in those types of positions. Apple itself has a spotty history of being open and honest with shareholders. It’s a matter of record.

If they sell their AAPL in the next few days you might have a point. Otherwise it’s just naivety in search of justification to say yeah but it does happen sometimes.

 

[darcyf]

You get in the position of these investors by being a cold-hearted jerk. Nobody is making billions by being honest and polite to people. They BS their way into their money and often to the detriment of those they encounter on their way up the financial latter.

I have to wonder why this is even a story. Like someone else said. There is a motive behind this information being disseminated like this. Likely back-end deals of some kind that benefit the investor. This sure as hell didn’t come out and a story to make people feel good about Apple.

That may well be true but is beside the point. You don’t hold onto those ill begotten billions through PR fluff.

 

[huge_apple_fangirl]

Yeah. He was familiar with him, and he was already right there…and Steve was dying.

Let’s not pretend there was some worldwide search

He could have chosen Forstall, who was much more "Jobsian". Obviously he thought Tim was the right guy.