Apple's Profit Downturn and Negative Customer Opinions Threaten 'Decade-Long Malaise' for Company

[APlotdevice]

"PCs are going to be like trucks." - Steve Jobs

Cook should really take those words to heart and stop trying to "casualize" the Mac.

 

[I7guy]

Then congrats. You know more than the three biggest tech companies in the world. Tell us again which company you own that has gotten it right?

Wait, the arm chair ceos got it right, but OP got it wrong?

 

[jozero]

Apple has been "dying" since the early 80s.

Seriously. Just get a bot to write these articles every 3 months for the rest of your lifetime. You'll get hundreds of thousands of hits and Apple blogs like Macrumors will always cover you.

 

[I7guy]

Apple was once run by a visionary who could dictate what the customer wanted. Now it is run by an accountant without a clear vision but it is still trying to dictate to the customer. It does not work.

It actually appears to be working.
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But even if that did occur, Apple would still be a viable company!

If Windows vanished Microsoft would go under. What's ops point again?

 

[Wild-Bill]

Apple deserves some hurt. Karma for systematically edging creative professionals out by discontinuing pro apps and CRIPPLING their computer lineup, and not paying much attention to it.

 

[Juicy Box]

The proper link to include for "universe of negativity ... becoming more noticeable" really ought to be forums.macrumors.com.

It is all over the place, not just MR.

Although, I noticed that MRs do tend to be more emotional than the other forum that I came from before joining MRs.

 

[melendezest]

In this new age of media where disinformation is the norm, I find it hard to believe any analyst or forecast. There's often so little background on the predictions, they come off as wild guesses. If anything, Cook has been a good steward of Apple's finances. They have enough cash to weather the storm as they search for the next big trend. After all, they created a slew of innovations over the course of a decade. I'm willing to be patient with them.

I have two issues with this.

One, they created a slew of innovations with Steve Jobs at the helm (or planning future products). The Timmy/Jony team is flat on its (watch) face.

Two, I've been patient with Apple for almost 6 YEARS now. Yet I've watched them destroy every. Single. Product I loved from the company.

Now I agree, Tim has been a good steward of Apple finances. The issue is that he's done that at the expense of long-term, former-repeat-customers like me.

 

[numbersyx]

Switched to Apple in 2007 or so, after years of building my own computers. Bought into the entire ecosystem. Mac Pro, iPhone, iPad, Apple TV, Time Capsule. Later sold the Mac Pro for a 2012 Mac Mini after the disasterous trash can Mac.

After my Mac mini is no longer usable, I'm likely switching back to Windows. Thanks, Tim.

Did the same thing myself. Built a series of Windows computers and switched back to Mac (after leaving in 1997) in 2007. Have long been a fanboy and have been sucked into buying everything Apple. I bought the new MBP but it might be my last Mac product. I've not been a fan of negativity but haven't felt as down about Apple as I am now.

 

[Breaking Good]

If anything, Cook has been a good steward of Apple's finances. They have enough cash to weather the storm as they search for the next big trend.

This is what Microsoft thought also. But the company's net assets are already factored into the stock price. The question then becomes how much are you expected to earn in the future.

Apple's growth has been propelled by one product, the iPhone. When over 60% of your revenue comes from a single product, it is easy to stumble and when you do, you fall hard.

 

[apolloa]

But even if that did occur, Apple would still be a viable company!

No it wouldn't and the stock would be dumped like nothing, NO investor is going to invest in a coporation who overnight kills off over 60% of its entire yearly revenue! It would kill the corporation stone dead.

 

[brentonbrenton]

If they wanted to help increase revenue, perhaps fix up the supply/demand chain. At least for me here in Australia, I ordered a new iPhone Plus 256Gb Jet Black model back in November through my telco (Telstra) and there is still no indication of when it'll arrive. The Apple site suggests delivery dates there for 2-3 weeks, so add a little extra time because it just a telco and then we're stuck in Christmas/New Year. I'm honestly not expecting delivery until January now. At which point the phone is about 25% through it's life cycle before it's even unboxed and the new model comes out. Maybe I should just cancel it and wait until next years model.

Similar for the Apple watch. Stock is up and down at my local stores. I'd like to go into the store, try 2-3 models and then purchase my watch on the day. The wait times are improving on the watches, but for a company the size of Apple can't get supply/demand worked out. I can't help but feel maybe they are artificially restricting supply to drag sales out, otherwise it might appear sales fall of a sudden cliff after the bum-rush of sales right after release.

 

[Chaos123x]

They need to get rid of Tim Cook. He's more focused on politics and social issues than running a good company. He took one of the best tech giants in the world and turned it into a trashy fashion company for idiots.

Apple is turning into total garbage.

Maybe they should buy Tesla and make Elon Musk CEO.

 

[Digital Dude]

I'm sure there is light, Tim has a cool head, the Mothership is probably taking too much of his time.

The sooner they move there and settle in the better. I'm certain things will improve from mid 2017.

But Tim needs a hard faced trouble shooter to do his dirty work for him, someone who relishes the dirty work.

When I watch the monthly drone video of the spaceship campus, and I contrast that against their product line decisions, I'm baffled. I think to myself; what the heck are they going to do in that facility? It most certainly doesn't appear that innovation is anywhere near but top of their priorities, unless Jonathan and "Phil" develops a new color for the next iPhone.

 

[APlotdevice]

Now I agree, Tim has been a good steward of Apple finances. The issue is that he's done that at the expense of long-term, former-repeat-customers like me.

Yeah, he is essentially Apple's Steve Ballmer.

 

[Altis]

Apple is well on its way to being a company of the mantra "I can't be bothered."

They have the potential to deliver the most amazing things, but they just can't be bothered to.

 

[Mildredop]

This actually kind of illustrates my point perfectly.

What I was trying to say, which got confused in the naming, is that the first Apple Watch is actually the series 0, the Series 1 is the new Apple Watch processor but same features as the old Series 0, and the Series 2 is the new Apple Watch processor with the new features.

Yeah. But Apple somehow thinks this won't confuse people.

Colour me confused.

So they name the processors? How do you know the next Apple watch will be the series 2? Or have they already announced this?

My understanding is they released the Apple watch then updated it...?

 

[Juicy Box]

Colour me confused.

So they name the processors? How do you know the next Apple watch will be the series 2? Or have they already announced this?

My understanding is they released the Apple watch then updated it...?

I think you are supporting his point. AW and some other Apple product line models are more confusing than they used to be.

This was one of the problems Jobs fixed when he came back to Apple in 1997, now it looks like Apple is at it again.

BTW, series 2 is already out, it came out the same time as series 1.

 

[deany]

When I watch the monthly drone video of the spaceship campus, and I contrast that against their product line decisions, I'm baffled. I think to myself; what the heck are they going to do in that facility? It most certainly doesn't appear that innovation is anywhere near but top of their priorities, unless of course they're going to come out with a new color for the iPhone.

Yes I think apple are stuck in a transition stage due to the Mothership, folks should not write them off.
I'm certain we will see big improvements once staff are settled in their new offices and apple will become the first trillion dollar net worth company approx 2018-2019

 

[Stella]

It actually appears to be working.
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If Windows vanished Microsoft would go under. What's ops point again?

Microsoft is more than just windows. They could survive on office alone - though a very cut down company.

Also you forget about government / educational etc contracts around the world. Microsoft do a lot more than just windows.

 

[drewsof07]

I feel like the iPhone is going to be the Apple II all over again. Apple clinging to their primary revenue generator too long, while burning hundreds of millions on R&D for products of which they're too indecisive to bring to market. Though they've never been first, they usually take strong positions with the brand. Apple has thrived on perpetuating their products through the proprietary eco-system, but the future of technology is interoperability; a la IOT. They seem to be too late to the home automation business, without offering much beyond siri integration thus far. Confidence begins to wain as I hear news of teams being gutted or dissolved entirely (Automation, Airport/Time Capsule). One sector with a ray of hope is Augmented Reality and related services. AR has huge potential for the future of mobile computing, and there aren't a lot of major players yet. Apple used to take big risks that paid. Now they are relegated to playing it safe, taking the small risks that pay modestly and keeping the lights on. Show us some real courage, and reignite the passion for excellence that once drove customers to products in diversified categories. Show us the A-team projects, no more B-team.

 

[Stella]

Depends how it was handled. APple still have iPads, computers, watch. All those still make a profit. no iPhones. The company would have to downsize.

How much cash in hand do Apple have - a tidy sum.

Sure apple would go through a very rocky period - but kill them stone dead? No

No it wouldn't and the stock would be dumped like nothing, NO investor is going to invest in a coporation who overnight kills off over 60% of its entire yearly revenue! It would kill the corporation stone dead.

 

[I7guy]

Microsoft is more than just windows. They could survive on office alone - though a very cut down company.

Same thing for Apple, they still have cloud services and App Store.

 

[Dan From Canada]

Tim has turned Apple into a phone company and fails developing new products.It has also failed the pro market. The moto is just think thin.

THIS!!! One million times.

I have never been so close to building my own pc again and getting an Android phone.

From computers that are built for form over function, ie, soldered in parts that I used to be able to replace and upgrade to being nickel and dimed to buy extra things like a charger when I got one of my kids an iPod.

Apple used to be very high on my list but like the OP says, it is more phone company than anything. No longer the visionary company that it used to be.

 

[APlotdevice]

Same thing for Apple, they still have cloud services and App Store.

Cloud services and an App Store that is restricted to their own hardware.

 

[Sandybox]

Yes I think apple are stuck in a transition stage due to the Mothership, folks should not write them off.
I'm certain we will see big improvements once staff are settled in their new offices and apple will become the first trillion dollar net worth company approx 2018-2019

Ludicrous to suggest that a building move is responsible for lack of innovation, executive arrogance/ignorance and an erosion of customer trust and a weak product line. Why would it affect staff so much? It shouldn't affect the leadership at all, they are paid handsomely to run the business and a spot of building work would not distract world class management (which they are clearly not).
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I have two issues with this.

One, they created a slew of innovations with Steve Jobs at the helm (or planning future products). The Timmy/Jony team is flat on its (watch) face.

Two, I've been patient with Apple for almost 6 YEARS now. Yet I've watched them destroy every. Single. Product I loved from the company.

Now I agree, Tim has been a good steward of Apple finances. The issue is that he's done that at the expense of long-term, former-repeat-customers like me.

Yup, they have moved every product line into a dead end. The last media event really underlined how weak Apple have become. A competent, confident company would have addressed the mountain of growing criticism by launching some great product changes as an FU to the nay-sayers. Instead we got the touch bar, nothing else, just the touch bar. Meanwhile calendar gets spammed, batteries get recalls, "touch disease" is dismissed as our fault and Cook keeps spouting on about the great future and his own political agenda. Very sad.