Shareholder pressure

Discussion in 'iPhone' started by bfg110, May 13, 2008.

  1. bfg110 macrumors member

    Joined:
    May 29, 2006
    #1
    I do not care when a new phone comes out... All I am saying is that there is no way shareholders will allow a month of time for a main product to go unsold. either the original phones will be back soon or a new one, but June 9th is a nearly impossible wait time.
     
  2. mags631 Guest

    Joined:
    Mar 6, 2007
    #2
    Yes, because shareholders of Apple are particularly upset at their return on Apple and will be compelled to second-guess SJ...

    Whether a new iPhone comes early or not, I don't think Apple shareholders are focusing their energies on a stock that has had stellar performance -- they are probably thinking more about their other holdings right now.
     
  3. bfg110 thread starter macrumors member

    Joined:
    May 29, 2006
    #3
    On the contrary, shareholders like one thing, beating estiamtes and increased revenue. If you do not sell a mjor product for 1/12 of your year, they care. Notice how this stock dipped to $124 because of a few articles talking about recession fears and having less people buy computers.
     
  4. dacreativeguy macrumors 68000

    Joined:
    Jan 27, 2007
    #4
    I think Apple makes a lot more money running out inventory at full price before a new model is released than having retailers blow out or send back unsold older models. This helps Apple maintain their 'premium' prices year after year. If there is always a last gen model for half the cost of the new model, eventually, Apple would have to cut the price of the new model to compete with the old model.

    This isn't new for Apple. They always do this. I guess that the iphone is still hotter than they thought and they cut production a bit too early this time.
     
  5. t0mat0 macrumors 603

    t0mat0

    Joined:
    Aug 29, 2006
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    Home
    #5

    Flawed thinking.

    I'm sure the shareholders hate Apple for their sales exceeding even their expectations.
    I'm sure the shareholders are irate that Apple is planning to launch at WWDC, and isn't make one final shipment of soon to be redundant iPhones, for their to be stories about annoyed buyers who didn't see the 3G iPhone coming.
    I'm sure it is impossible to wait for so long. I feel at least 10% of macrumor members will burst blood vessels due to the sheer pent up anticipation/frustration.
     
  6. corrado7 macrumors regular

    corrado7

    Joined:
    Mar 26, 2008
    Location:
    Atlanta
    #6
    Shareholders are not involved in day to day operation of a corp.
     
  7. gnasher729 macrumors P6

    gnasher729

    Joined:
    Nov 25, 2005
    #7
    If there is one thing that Apple doesn't give a **** about, then it is the opinion of its shareholders. If they are not happy, they are welcome to sell AAPL and buy MSFT or DELL.

    Shareholders typically have at most a three month few. Apple, on the other hand, has had a game plan that started almost ten years ago with the introduction of the first iMac and has been successful since then. If any shareholders want to complain, they are welcome to it.
     
  8. mags631 Guest

    Joined:
    Mar 6, 2007
    #8
    I think most investors worry about where the stock is going. And, Apple is way off of its lows from the year (it's trading at $189 today). Comparing MSFT, DELL, HPQ, and GOOG, Apple is the leader of this group in stock price performance for the last year.

    That being said, I'm sure there are investors who believe that they can somehow do a better job at running Apple and who have enough free time on their hands to complain.
     
  9. dacreativeguy macrumors 68000

    Joined:
    Jan 27, 2007
    #9
    Actually, there are a lot of companies where employees are shareholders, but a lot of those companies don't care what their employees think either. :)
     
  10. Small White Car macrumors G4

    Small White Car

    Joined:
    Aug 29, 2006
    Location:
    Washington DC
    #10
    Everyone knows that a new iPhone is coming. Everyone I know who might buy one has said they won't buy until the new one comes out.

    In other words, people AREN'T buying them for 1/12 of the year already!

    Why should I care if they're on the shelf or not? If nobody's buying them anyway, what difference does it make?
     
  11. chrisparr macrumors regular

    Joined:
    Mar 10, 2008
    #11
    The OP has it right.

    If a company makes $300 million profit, it's shares can tumble because it gave a prediction of $320 million. When you're not selling you're loosing the chance to make money.

    Retailers who have iPhone v1 in stock won't be able to send them back to apple for a refund when v2 comes out. They may be able to work out a deal of course, but I doubt they have no legal right to a refund from apple.

    At the end of the day, it isn't about fancy products. They are just a means to an end. It's all about the company's bottom line.

    C
     
  12. corrado7 macrumors regular

    corrado7

    Joined:
    Mar 26, 2008
    Location:
    Atlanta
    #12
    let me rephrase this:

    Apple might have a handful of major shareholders that sit on the board or are even directors in one way or another. They are the ones involved in day to day operations. But minor ones are not involved. Those who are major shareholders are involved in day to day so they know exactly what is happening and why they chose this course of action. They are not going to bring a shareholder lawsuit against the company. They have the power to change the course of action directly

    For the minor shareholders, they will have to prove that Apple violated the Business judgment rule

    Evidentiary presumption that directors in making decisions have acted:
    • On an informed basis
    • On good faith
    • In a manner they believe to be in the best interest of shareholders
    Motive is the most important even if the business failed
     
  13. Julien macrumors G3

    Julien

    Joined:
    Jun 30, 2007
    Location:
    Atlanta
    #13
    As of right now Apple is up $2.14 today over yesterday and near or at a record high.:D
     

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