I think what you're trying to say is that most of apple's "stock worth" is tied up within the iphone. But apple sans iphone, iphone makes $0, they're still making about $17-$20bn a quarter in revenue from other businesses.
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Apple Reports First Year-Over-Year Revenue Decline Since 2003: $10.5B Profit on $50.6B in Revenue
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Their mac line is a fortune 500 on it's own, same with the iPad. What exactly do you think you're talking about?
Wake up Apple! update all your products with up to date specs because people are really getting sick of this.
He's right. They are much too dependent on the iPhone. Not just as a percentage of revenue but as a percentage of profit. Those products areas you mention have a much smaller gross margin than the iPhone. As sales of the iPhone slow down and ASPs shrink, there's no other business that can make up for it. That is the definition of not being diversified.
That is way to reasonable and normal of a corporate type of operation. Apple did not become the most valued company in the world by doing what everyone else is doing.
My take is the Apple Car will rock the transportation world just like the iPhone did. Look at the archives of this site and you'll see hundreds of posts with "Apple has no idea about the cell phone business, Nokia, etc. will beat the **** out of them." from reasonable voices.
With Apple stock down a bit, it is a good buy. I'm putting my money where my mouth is and buying another South Bay house with the Apple Car comes out and the stock skyrockets.
....I think maybe it's time to stop worrying about cars and start worrying about what makes them money.
A year or so ago people were complaining rampantly about the "improved" looks of iOS and OS X. I remember someone correlated the new "kindergarten looks" of iOS 7 and OS X to what was, at that time, a noticeable but not that significant drop in iPad sales. He/she speculated that the drop in iPad sales at that time might be linked to the appearance change. Now they're down 20%. It makes me wonder....
A year or so ago people were complaining rampantly about the "improved" looks of iOS and OS X. I remember someone correlated the new "kindergarten looks" of iOS 7 and OS X to what was, at that time, a noticeable but not that significant drop in iPad sales. He/she speculated that the drop in iPad sales at that time might be linked to the appearance change. Now they're down 20%. It makes me wonder....
You know what they say, 'Don't try to catch a falling knife...'I just bought the stock you didn't sell.
Now that the crook icahn is bugging out, expect bigger drops. Hold on to your hats! haha.
Nice saying.
I work In an environment where I catch sharp falling knives consistently.
You're assuming their other businesses don't drop as well, which would likely happen. If the iPhone continues to decline and reach $0 then apples stock will be worth $15-30, not $90-$-100.
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65% revenue just from the iPhone could vanish. They'd drop from the most valuable company to a low level fortune 500.
well.....that explains it then.....Nice saying.
Nice saying.
A lot of things actually......do you run with them too?
kinda like this huh?Seems like this would be off the topic.
I7guy said:Nice saying.
Would be stupid to say that though when the iPhone is a massive halo product. A lot of their other revenue would dry up if the iPhone stopped selling. Revenues from Services, which rely heavily on being used on i-Devices would likely drop. Less iCloud usage. Possibly less iTunes usage. Other would also dry up, as at least two of the groups in "Other" would likely lose sales. How much does the Apple TV, or the Accessories rely upon the iPhone sales? What about the Apple Watch? which wouldn't sell at all without the iPhone. And they can't really fall back to the iPod. that horse is dead.
What about brand power that the iPhone brings? Along with the iPhone, Mac sales also started to increase dramatically around the same time as the iPhone launch. I don't think it's any coincidence that iPhone sales impact Mac sales with brand recognition. "I have an Apple phone and I love it, hey, I hear they make computers too!"
THIS is why Investors a freaking out over seemingly small dip in revenues. Without the iPhone selling, all the other product categories Apple is in is believed to drop alongside. WIthout the iPhone, they likely wouldn't have 17-20bn from other revenues.
but then again, iphone sales dropped y-o-y and services still went up. I understand iOS as an ecosystem, but most company's branding is tied up to something. If tomorrow, nobody buys a windows license again, their business operations will likely falter as well. There are symmetries and reliance on ecosystems. I just offered an extreme example.
Correct. I was only talking apples woes.
But it makes sense that services might suffer from lag before it decreases as well. As sales of devices dropp, the existing devices in the world don't disappear overnight. Those users continue to buy and use services. But as they replace their devices down the line, but possible with others (if sales continue to decline, it's always possible they lose sales to another vendor) that they will switch services. The other categories will catch up and see the same declining numbers.
It's easy to say that "see these other categories are good so we're fine, but it might not be true, and that's when the bottom falls out.
Ask blackberry. In 2007 they were the best of the best. Largest smartphone vendor selling millions of units a year. iPhones came out and within a few years, blackberry device sales started to waver. They falsely believed everything was great because service usage (BBM and BES) was still going up.
So they kept telling themselves they knew best, because they got themselves there in the first place, and they were #1. They literally didn't see the competition coming, pass them, then destroy them before it was too late because of their own hubris
We all know what happened next. Just look at where bbry is now. Not saying Apple is "doomed" by any stretch, and I don't think any company can maintain year over year record revenues and profit. It's just not realistic.
Apple needs to diversify not just in consumer electronics but in the Enterprise and also in Content.
Comcast was just a lousy cable Internet provider but have now become a content powerhouse with NBC Universal and the DreamWorks acquisition today.
Apple should seriously think about getting into Enterprise software and services and maybe buy up some content companies.
Stop playing it safe with financial engineering.
Comcast was just a lousy cable Internet provider but have now become a content powerhouse with NBC Universal and the DreamWorks acquisition today.
Apple should seriously think about getting into Enterprise software and services and maybe buy up some content companies.
Stop playing it safe with financial engineering.
I bought my first Apple product in 1983, a Lisa computer that made my world so much better over DOS, and I've lost track of how many Macs I've bought since then and my wife and I are both on our 4th iPhones each, BUT... Apple started jerking their fans around when they dumped iMovie HD and forced the watered-down iMovie 11 onto customers. Then, when they added complexity to iTune purchases with having to sign into your account when you wanted to listen to music you bought, in another Apple product, that's when I switched to buying all my songs through Amazon.
The most recent abrasive and arrogant move by Apple is their lousy 2 step process for signing into one of your Apple devices. Hordes of long-time Apple customers are having problems with this and Apple is ignoring customers who are not having much success with this convoluted 2-step verification.
Each time for the past 12 months when I turn on my MacBook Air, I get three prompts in a row to enter my password for iCloud (and 99% of the time, I don't use iCloud but still the annoying prompts. Same is true with my iPhone except it also keeps asking for me to sign into iTunes, even when I won't use it anymore for playing or buying music.
Apple has lost sight of their early marketing effort, "A computer for the rest of us" and Apple is is not much more than a pain for a growing number of us.
I'll probably be looking at a Samsung cell phone next time I'm at my AT&T store looking to upgrade.
The most recent abrasive and arrogant move by Apple is their lousy 2 step process for signing into one of your Apple devices. Hordes of long-time Apple customers are having problems with this and Apple is ignoring customers who are not having much success with this convoluted 2-step verification.
Each time for the past 12 months when I turn on my MacBook Air, I get three prompts in a row to enter my password for iCloud (and 99% of the time, I don't use iCloud but still the annoying prompts. Same is true with my iPhone except it also keeps asking for me to sign into iTunes, even when I won't use it anymore for playing or buying music.
Apple has lost sight of their early marketing effort, "A computer for the rest of us" and Apple is is not much more than a pain for a growing number of us.
I'll probably be looking at a Samsung cell phone next time I'm at my AT&T store looking to upgrade.