The sky is falling, the sky is falling. Yes, Apple does not appear to be innovating as fast as everyone would like and the changes that are made seem incremental. The market has dropped its valuation of Apple. So what?
Is this a problem of no knowledge of history, no knowledge of how capital markets work, no knowledge of product development and life cycles?
Apple will go the way of IBM, AT&T, Microsoft, that is the nature of business. It is impossible to sustain a continual growth curve because markets get saturated and unless a company finds new markets, it eventually stagnates. So right now, we can't see where the technology market is going and what the killer app is going to be, so it is not unreasonable to believe that Apple has reached its peak.
TVs? There are no margins on the manufacture of consumer TVs, and while Apple may enter this market with a premium device, the life cycle is considerably longer and its ability to make a significantly profitable product seem slim, as least compared to what it achieved with iPhones and iPads.
What is the next techological advancement that isn't just an incremental improvement? Everything that we've seen in this area, and not just from Apple, is just a reimagining of existing products with improved technology, or has everyone forgot that the Sony Walkmen was the iPod of its day, and satellite phones the iPhones of their day? Everything is just an improvement on existing technology.
The share drop? In case you didn't know, the stock market is a speculative swamp, particularly when it relates to a company that until this year never had a dividend. A share drop just represents profit taking from shareholders who had never received a profit from their investment in the form of a dividend, so the share drop should have been expected.
As to products in the pipeline, see above, but my view is that the market has been saturated with devices and it will be increasingly difficult for Apple to offer true innovation and it will find itself chasing corporate clients and other revenue sources as consumers increasingly realize that the device they have does exactly what they need and they don't need a new one (iPod anyone?). Yes, Apple has its work cut out for it to maintain its unbelieveably high market capitalization, but I really don't think that the leadership at Apple believes that that market cap is their goal anyway, they just want to sell cool products. Given the changes that Tim Cook has instituted, I don't see that changing in the near future.
So, is the sky falling? Everyday. Fortunately, the Earth will be around for another few billion years, so I don't worry about what will happen to Apple.
Is this a problem of no knowledge of history, no knowledge of how capital markets work, no knowledge of product development and life cycles?
Apple will go the way of IBM, AT&T, Microsoft, that is the nature of business. It is impossible to sustain a continual growth curve because markets get saturated and unless a company finds new markets, it eventually stagnates. So right now, we can't see where the technology market is going and what the killer app is going to be, so it is not unreasonable to believe that Apple has reached its peak.
TVs? There are no margins on the manufacture of consumer TVs, and while Apple may enter this market with a premium device, the life cycle is considerably longer and its ability to make a significantly profitable product seem slim, as least compared to what it achieved with iPhones and iPads.
What is the next techological advancement that isn't just an incremental improvement? Everything that we've seen in this area, and not just from Apple, is just a reimagining of existing products with improved technology, or has everyone forgot that the Sony Walkmen was the iPod of its day, and satellite phones the iPhones of their day? Everything is just an improvement on existing technology.
The share drop? In case you didn't know, the stock market is a speculative swamp, particularly when it relates to a company that until this year never had a dividend. A share drop just represents profit taking from shareholders who had never received a profit from their investment in the form of a dividend, so the share drop should have been expected.
As to products in the pipeline, see above, but my view is that the market has been saturated with devices and it will be increasingly difficult for Apple to offer true innovation and it will find itself chasing corporate clients and other revenue sources as consumers increasingly realize that the device they have does exactly what they need and they don't need a new one (iPod anyone?). Yes, Apple has its work cut out for it to maintain its unbelieveably high market capitalization, but I really don't think that the leadership at Apple believes that that market cap is their goal anyway, they just want to sell cool products. Given the changes that Tim Cook has instituted, I don't see that changing in the near future.
So, is the sky falling? Everyday. Fortunately, the Earth will be around for another few billion years, so I don't worry about what will happen to Apple.
