Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Everybody can't charge 40% markup and sit on billions of dollars that they might possibly invest in the future if they feel like it. Apple has a luxury of being able to cherry pick what they do. All of the companies in an economy won't get that option, so they won't be able to copy all of the things that Apple is doing.

That is because too many companies listen to the short sighted morons called the board of directors. If these companies would try this thing called long term strategic planning, they would be able to pull these margins off.

Many companies try to imitate Apple products. If you copy your competition, you will always be behind. If companies want to imitate Apple, they need to limit the Board of Directors to looking for fraud and abuse. Let those who know how to lead lead. Let those who know how to push papers do what they are told.
 
couple of things:

1) Boards are overrated these days. Most of the time, these Boards only serve to set pay, do auditing tasks, etc. Pretty tame and boring stuff. Boards do not set company agendas or tell CEOs where the business should go. Not these days.

chuckle .... you are confusing having a bad team (e.g, The Saints back when they had bad players , coaches , etc. ) and having a good team (e.g, The Saints that just recently won the super bowl). The crappy Saints teams didn't mean that football sucked. Just that team.

Second, many board sucked because they are packed with insiders ( friends and cross populated. " If you'll rubber stamp me on my board, I'll put you on mine and I'll rubber stamp your stuff. " ) and flunkies ( bodycount stuffers who fake like doing something and cash the check. ). If employees down the food chain from the CEO acted that way ( propped up each other pet, empire building projects and just "mailed in" doing analysis ) most rational folks would say that was not evidence of a good, well run company.
The blow off of you don't really need good, compentent board members is exactly akin to saying don't really need good, compentent employees. They both serve a function.


2) 6 board members is pretty remarkable and very low and seems to be very Steve-like. Why have 9-10 members that could suffer groupthink?

What??? Larger groups of diverse people are typically less susceptible to group think than smaller homogeneous ones. There is a point when grow too large and it is difficult to get large consensus ( cough U. S. Congress .... hopeless pile of ding dongs ).

It is hard to pick the right group with a good balance. Many corps just punt and round up a bunch of "buddies" ( "I like him/her, he/she thinks like me. ). That's what leads to group think.

It appears that the board picking committee is Steve. That is a bad thing. One, he probably doesn't like doing it ( "Oh well we kicked Schmidt off ... we don't need a spare and I'd rather spend all doing tweaking iPad minutiae " ) and put off doing it. Ooops really did need a "spare" member. ( stuff happens. Sometimes folks have to quit, get better offers, come into conflict, or just straight up die on you. ) Two, a good small working group can split up the work.



3) Al Gore is on the board and I would argue that is pretty different than just any other "outsider".

Even if he isn't in over his head when it comes to really grokking what is going on and being able to ask good questions, he is just one person. Typically a board has multiple committees.



P.S. The board doesn't have to set vision but they should be a sounding board for it. Since Apple is so secret there is no one else who doesn't report to Jobs (directly or indirectly) who can challenge an assertion he makes and not be under threat of being fired ( or sent packing with a golden parachute if have special contract). Sure next, shareholder meeting could get board member not reelected if have the votes, but would take a while.
 
Steve should give the board of directors a set of rubber stamps and have them sign a loyalty oath.
The stamps should say iAgree. :apple:
 
What kind of revisionist history is that? Jobs got sacked in 1985.
Apple had its biggest stock/valuation run up in that decade after that happened.

The stock somewhat plateaued after than till the mid 90s when it tanked (in part due to board putting some bad leadership into position. )

I never mentioned timescale. You assumed I meant quickly. I'm well aware it takes many years to run a company into the toilet, but run it into the toilet they did, and Im glad u agree ;)

Jobs was back at Apple for several (approx 3) years before the stock price got back to where it was in the early 90s.

Yeah, It took him only 3 years to turn the company back round. Not bad ;)



Companies can always find some room for improvement. Complacency leads to problems. In fact that is the problem they had in the 90s. Apple was full of itself and paid little attention to several important trends and issues.

I agree a company cannot stand still but boards do not run companies, and the most successful companies are those run by inspired geniuses like steve jobs and bill gates and michael dell etc etc... Yes they're flawed people but their vision, talent, drive and razor sharp focus is what drives their companies on... Most companies don't have luxury (if that's the right word) at their helm but those that do should embrace it and enjoy the ride while it lasts... It's always a great pity when the grey men in grey suits take over and suck the soul from a company. This is what boards can do if u let them...
 
I would like to say one thing, I am not disrespecting Apple's board, I think that many if not most of them (Quite probably all) are very sharp people. They may very well be the shining exception that proves the rule.
 
Correct, and the fact that they haven't fired Jobs indicates they agree with him and his vision. And if York had that big a problem, he SHOULD have resigned. The fact that he didn't indicates he generally agreed with how things were going. And judging by his obituary his opinion wasn't to be taken lightly.

We don't know what York said. We don't know how his words might have been misinterpreted (like saying to a reporter "So Jobs kept his private business private. I guess I should have resigned over it. No, I shouldn't, you (reporter) are an idiot for even suggesting it". ) He is dead now and cannot refute any nonsense that is written about him. If he really said he should have resigned, why didn't the Wall Street Journal publish that when he was still alive?
 
Hate to break it to ya, but if a company goes public and has shareholders, then that is exactly what they're supposed to do. A company that doesn't try to do that isn't doing what the owners (shareholders) want them to do - maximize shareholder value. Its nice to think of Apple as a different kind of company, but at the end of the day its a business and the investors who funded it expect the best returns possible. If the management doesn't want to worry about market share and stock price then don't go public or take the company private again.

The thing is that Apple doesn't give a rat's ass about tomorrow's share price. Or the share price in three months. Or the share price next year. Steve Jobs has been planning much, much further ahead all the time. Slowly moving little piece by little piece into the right place. And you can see for yourself what happened to the share price.

If you let the idiots rule the company who put the share price first, they will come up with lots of ideas that prop up the share price for the next three months, while weakening the structure of the company. Save on R&D, immediate jump in profitability. Build your computers for less by reducing the quality, again instant jump in profitability. Of course the company pays for it two years down the line. That's the secret of Apple's success: Their first goal is to make great products that lots of people are willing to pay good money for. The rest is automatic.
 
There was almost an SEC investigation over the back-dated grants of AAPL stock options. Imagine Steve Jobs getting hauled into court by a prosecutor looking to make a name for himself. You don't mess with the SEC.

If the Board of Directors was stronger, the directors who make up the compensation committee could/should have raised the issue before the options were granted rather than rubber-stamp every decision by Jobs.
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.