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Quattro Wireless confirms acquisition, CEO named Apple VP

post #1 of 43
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Apple has officially entered into the advertising business with the purchase of Quattro Wireless, the mobile ad company confirmed via its Web site Tuesday.

Andy Miller, former CEO of Quattro Wireless, has been named the vice president of Mobile Advertising at Apple. Miller confirmed the purchase and his new role with the Cupertino, Calif., company in a note on the Quattro Web site.

Monday evening, Apple's purchase of Quattro was first revealed, though unconfirmed. The company's advertising network includes iPhone, Android and other smartphone apps, as well as thousands of mobile Web sites. The Waltham, Mass., company has a client list that includes companies such as Disney, Visa and Ford. It is said that Apple agreed to a $275 million price tag.

Quattro is also a direct competitor to AdMob, the mobile advertising agency that Apple allegedly had discussions with before it was acquired by Google for $750 million. But Google's AdMob deal has come under scrutiny from the Federal Trade Commission, due to concerns that the deal could allow Google to monopolize the mobile ad market.

Miller's letter follows in its entirety:

Happy New Year from Quattro Wireless!

We are thrilled to let you know that Apple has acquired Quattro. We want to share with you our excitement about this news and what it means for our customers.

We have built our business by enabling advertisers to reach the right consumers across the mobile web and in applications. We remain focused on delivering more engaging, relevant and useful ads to mobile devices, and improving the measurement and execution of digital campaigns. Together with Apple, we look forward to developing exciting new opportunities in the future that will benefit our customers.

For now, the offerings and services you receive from Quattro Wireless will not change. We will continue to operate the Quattro Wireless network across all devices and platforms. Your client and support teams will remain the same, and you can continue to expect the world-class service we are proud to deliver to our customers.

We look forward to working with you during this exciting time.

Andy Miller

Vice President, Mobile Advertising

Apple


Apple's purchase of Quattro follows the acquisition of online music streaming service Lala in December. That deal, said to be valued at $85 million, is believed to pave the way for a cloud-based iTunes service.
post #2 of 43
Apple is showing the willingness to use it's strong cash position to make strategic moves. I expect more acquisitions over the next couple of years.
post #3 of 43
Good for Apple. Next they likely will buy a smaller, innovative search engine company... Many are likely for sale, and then combine the search revenue and make that engine your default search in all the Safari versions (iPhone mobile Safari, Mac and PC desktop Safari, Tablet Safari, etc.).

Are strategic social networking sites acquisitions far behind?

Music (iTunes and LaLa), a mobile ad company (Quattro Wireless), a neat search engine, combined with a few social networking acquisitions... Recipe for revenue!
post #4 of 43
Next purchase: a mobile phone company!

Done with all the bickering with AT&T, Verizon and what have you!

post #5 of 43
This move scares me.

Apple's business is creating terrific customer experiences with consumer electronics and computers. Why are they buying an advertising business?

The reason Google will fail at competing with the iPhone is that they are an advertising business. They cannot compete with Apple's mission of creating great experiences. If Apple begins to become an advertising business, it may the first true danger to Apple's emerging dominance in the computer/cell phone business.

If you think that's preposterous ask yourself this, why are we not all using Sony MP3Mans to listen to our music? The answer is that Sony bought Universal Pictures and went from a company that made great consumer electronics to a "content provider". They ruined their MP3 players with DRM designed not to help consumers but to protect Sony.

Beware, Apple. Don't lose sight of your mission. Don't lose your focus.
post #6 of 43
Quote:
Originally Posted by adamw View Post

Good for Apple. Next they likely will buy a smaller, innovative search engine company... Many are likely for sale, and then combine the search revenue and make that engine your default search in all the Safari versions (iPhone mobile Safari, Mac and PC desktop Safari, Tablet Safari, etc.).

Are strategic social networking sites acquisitions far behind?

Music (iTunes and LaLa), a mobile ad company (Quattro Wireless), a neat search engine, combined with a few social networking acquisitions... Recipe for revenue!

I'm not so sure that taking on Google in search is any smarter than taking on Apple in MP3 players. Knowing Apple, I'd bet there is something much deeper and long term in mind then you might think.

One thing is clear - Apple has taken a page from Google. Likewise, Google has taken some pages from Apple. Gee Wally, you'd think they spent time on each other's board of directors.
post #7 of 43
I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities. While I checked out Lala after Apple bought them, and found them to be a really spectacular addition, I can't see the purpose of this acquisition other than maybe a defensive purchase, which while it might keep others from getting a chokehold, doesn't really seem like an Apple purchase. Apple usually seems to buy companies that have a particular skill or unique ability that can somehow enhance Apple's current of near-future assets. The maps company=future iMap. Lala=future online iTunes (maybe integrated with MobileMe?) and usage statistics. This deal=???
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post #8 of 43
Quote:
Originally Posted by adamw View Post

Good for Apple. Next they likely will buy a smaller, innovative search engine company... Many are likely for sale, and then combine the search revenue and make that engine your default search in all the Safari versions (iPhone mobile Safari, Mac and PC desktop Safari, Tablet Safari, etc.).

If I were to guess on a search engine purchase (not that I think they will buy one) would be Wolfram|Alpha. It needs a lot of work right now, but I think they could become the future of search. This could also translate into context-sensitive help menus in Mac OS X that can tell you how to do about anything. Talk about a rejuvenated Spotlight! Time Machine searches, etc. would be terrifically enhanced.
Oh, the possibilities.
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GIGO. The truth in all of life.
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post #9 of 43
Quote:
Originally Posted by Smiles77 View Post

I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities. While I checked out Lala after Apple bought them, and found them to be a really spectacular addition, I can't see the purpose of this acquisition other than maybe a defensive purchase, which while it might keep others from getting a chokehold, doesn't really seem like an Apple purchase. Apple usually seems to buy companies that have a particular skill or unique ability that can somehow enhance Apple's current of near-future assets. The maps company=future iMap. Lala=future online iTunes (maybe integrated with MobileMe?) and usage statistics. This deal=???

I believe that they want to add ads to the sdk. If developers have a really easy way to incorporate their ads, Apple will get a big chunk of the iPhone ad revenue while keeping the existing revenue from other mobile platforms.
post #10 of 43
This is good move. Apple doesn't want Google to have a monopoly.
Apple had me at scrolling
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Apple had me at scrolling
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post #11 of 43
Quote:
Originally Posted by LTMP View Post

I believe that they want to add ads to the sdk. If developers have a really easy way to incorporate their ads, Apple will get a big chunk of the iPhone ad revenue while keeping the existing revenue from other mobile platforms.

Sounds reasonable. I just hope that Apple shakes out a little magic to make ads both good for developers, yet do no harm to the user experience. I think we need a new variety of ads as opposed to boring, intrusive banner ads.
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GIGO. The truth in all of life.
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post #12 of 43
Quote:
Originally Posted by FormerARSgm View Post

I'm not so sure that taking on Google in search is any smarter than taking on Apple in MP3 players. Knowing Apple, I'd bet there is something much deeper and long term in mind then you might think.

I don't believe Apple would be taking on Google head to head in search per se, but rather offering advertisers and users a way to use an Apple owned search engine to keep ad revenues (and control over search results) with Apple. Right now Apple is giving Google free traffic and search-based revenue each time an Apple user/customer uses their Google search box in a Safari browser.
post #13 of 43
Quote:
Originally Posted by adamw View Post

Right now Apple is giving Google free traffic and search-based revenue each time an Apple user/customer uses their Google search box in a Safari browser.

How do you know Google isn't paying Apple to be their dedicated search engine for Safari (Mac and iPhone?)

I would guess the only reason there is a link in the weather app to that crappy Yahoo Weather site is because they are paying for it.
post #14 of 43
Quote:
Originally Posted by Smiles77 View Post

I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities. While I checked out Lala after Apple bought them, and found them to be a really spectacular addition, I can't see the purpose of this acquisition other than maybe a defensive purchase, which while it might keep others from getting a chokehold, doesn't really seem like an Apple purchase. Apple usually seems to buy companies that have a particular skill or unique ability that can somehow enhance Apple's current of near-future assets. The maps company=future iMap. Lala=future online iTunes (maybe integrated with MobileMe?) and usage statistics. This deal=???

This article may shed some light on the thinking behind the acquisition. Just speculation of course... http://www.macworld.com/article/1454...1/quattro.html
post #15 of 43
Quote:
Originally Posted by Smiles77 View Post

I'm still trying to figure out what Apple wants this company for. Looking at their website, it doesn't appear to have any incredible or especially unique qualities.

My first guess was that they will build advertising widgets into the SDK to provide a revenue source for free apps. They can monetize many of the things that Google is doing well right now.

...It also helps take the heat off of Google for advertising monopoly, but I doubt there is any kind of collusion going on. Simply synergy and mutualism.
post #16 of 43
Quote:
Originally Posted by adamw View Post

Good for Apple. Next they likely will buy a smaller, innovative search engine company... Many are likely for sale, and then combine the search revenue and make that engine your default search in all the Safari versions (iPhone mobile Safari, Mac and PC desktop Safari, Tablet Safari, etc.).

Are strategic social networking sites acquisitions far behind?

Music (iTunes and LaLa), a mobile ad company (Quattro Wireless), a neat search engine, combined with a few social networking acquisitions... Recipe for revenue!

This all sounds totally evil to me.

Don't you think a company might have higher motives than simply generating revenue? Don't you have any moral compass at all?

If Apple just wanted to make money there are thousands of other ways to go about it and hundreds of opportunities they already passed by in favour of adhering more closely to their stated goals. Why do you immediately assume that it's all about the revenue and that this is Apple's main focus?

If more companies were like Apple, and actually focussed on their customers, what the customers wanted, and making the best product they could make at the fairest prices they can, the world would be a lot better off.

PS - Please remove the religious advertisement from your sig. it's really bad etiquette.
post #17 of 43
I was simply giving possible scenarios, based on Apple's announcement today of this acquisition of Quattro Wireless.

I would like Apple to stay focused on computers and software, but realize that in this real world, where Google and Microsoft are trying to dominate, that Apple needs to at very least be somewhat defensive in their acquisitions, products, and services.
post #18 of 43
Quote:
Originally Posted by Roos24 View Post

Next purchase: a mobile phone company!

Done with all the bickering with AT&T, Verizon and what have you!


Apple are a mobile phone company. The last thing they want to do is purchase any carrier, as it's a nightmare business. Not to mention Apple operates in most countries on many different carriers, they won't buy one just because it's America.
Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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post #19 of 43
Quote:
Originally Posted by adamw View Post

I was simply giving possible scenarios, based on Apple's announcement today of this acquisition of Quattro Wireless.

I would like Apple to stay focused on computers and software...

"Download iTunes 10" for example is Apple focusing on software. They just don't want to have to get into a shouting match to get noticed.
Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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post #20 of 43
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Originally Posted by amac4me View Post

Apple is showing the willingness to use it's strong cash position to make strategic moves. I expect more acquisitions over the next couple of years.

I'm selling a bucket of steam for $863M if they are interested.
Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of a rumoured device - Comedy Insider (Feb 2014)
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post #21 of 43
Quote:
Originally Posted by adamw View Post


I would like Apple to stay focused on computers and software.

They are:

Macs = computer
iPod = computer
iPhone = computer
Tablet = computer
And they all run software.

In 2010 we need to redefine the word "computer", or at least apply it to a broader range of devices.
post #22 of 43
Quote:
Originally Posted by Gazoobee View Post

This all sounds totally evil to me.

Don't you think a company might have higher motives than simply generating revenue? Don't you have any moral compass at all?

Uh, Apple is a public owned company. As such its only obligation is to make money for its shareholders, PERIOD.

Of course in doing such Apple must weigh the methods and long and short term decisions, as these can effect the long (and short) term gains its stockholders achieve.

It is to Apple's credit (and ingrained in it's culture) to best achieve long term gains to its stockholders by innovating great products and focus on innovation above most other methods. However, Microsoft certainly has not let its stockholders down over the decades. But their methods are catching up with them....
post #23 of 43
Quote:
Originally Posted by Interdyne View Post

This move scares me.

Apple's business is creating terrific customer experiences with consumer electronics and computers. Why are they buying an advertising business?

Apple has been distributing free apps for the iPhone/Touch with all the overhead yet others like AdMob were riding on that and taking the profit. Apple had to respond and this approach is no doubt preferable to ceasing free apps for many people.

Hopefully developers will make both 'free' (costs me time) and paid for (costs me money) versions of their apps.

The reason that advertising has become so ubiquitous is that it provides a means of micropayments that funds a lot of media. In the process it distorts the media, wastes my time and adds to the price of every product disproportionately to the benefit it gives. Advertising sucks big time, many advertised products are crap (aka poisonous) for example sugar water, junk food, drugs.

Apple has a micropayments system in place with iTunes and the app store so the opportunity is there for developers to take the sensible route especially considering that it has been reported that in-app adverts don't provide much revenue, Apple has created the situation where apps are low cost compared to other platforms due to the efficiency of the distribution network, longer term I would like to see people weaned off advertising by efficient micropayments.
post #24 of 43
There was a time when Apple was about the end-user, and I always felt like Windows products were more about the developers and businesses that wanted access to the end-user. This move by Apple is about buying a company whose business it is to find out as much private information about you as it can (what you rent, what you buy, what you watch, what you listen to, what you surf) and give that information to businesses that want to target you. Since Apple actively monitors your activities through its istores and devices like the iPhone, iPod Touch, and AppleTV, they're in a prime position to give up this information. This is about about sticking ads in front of the end-user of Apple devices. Maybe its just ads on video content, maybe its ads on streaming audio, maybe its in-game ads, I can gaurantee you most people don't want them. I realize there's an all-new Apple fanbase who base their opinions on nothing more than Apple's stock price, and they'll say this is great (you know, the ones who think Apple innovation means buying Kmart and adding an iShop to iTunes to take on Amazon and Walmart). As an old-time Mac fanboy I think this move sucks, and there's nothing that will come from this marriage that I'm interested in seeing. A tablet I can get excited about, this is just about companies wanting access to me, and Apple's willingness to give it to them.
post #25 of 43
Great, The iSlate is going to be a billboard
post #26 of 43
Quote:
Originally Posted by QEII Student IT View Post

Great, The iSlate is going to be a billboard

Apple builds its reputation around providing a superior user experience. Anything that impacts on it negativly doesn't make it out the door.
post #27 of 43
Instead of the money going to AdMob/Google it can be directed to Apple to help recoup any distribution costs for free ad-supported iPhone applications.
Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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post #28 of 43
Well, good for Apple. It'll be interesting to see how they use all their recent purchases. I'm sure there'll be more this year.
post #29 of 43
And of course this brings to mind this lovely Apple patent that came to light this year:

http://www.engadget.com/2009/10/22/a...os-armageddon/

Quote:
From Engadget link: So seeing an Apple patent application for "Advertisement in Operating System" attributed to "Inventor" Steven Jobs himself is enough to send chills up the spine...the idea presented would offer "visual or audible" advertisements that "disables one or more functions while the advertisement is being presented." Ugh.
post #30 of 43
Quote:
Originally Posted by Quadra 610 View Post

In 2010 we need to redefine the word "computer", or at least apply it to a broader range of devices.

Screw redefining it, educate the consumer instead.
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #31 of 43
Quote:
Originally Posted by Quadra 610 View Post

In 2010 we need to redefine the word "computer", or at least apply it to a broader range of devices.

Looking at the Apple Dictionary, why would you need to redefine it?

computer |kəmˈpyoōtər|
noun
an electronic device for storing and processing data, typically in binary form, according to instructions given to it in a variable program.
a person who makes calculations, esp. with a calculating machine.
post #32 of 43
It's amazing that in these days Microsoft is so overshadowed in the media by other companies even with their well received operating system, Windows Leaven.

Apple's gotta do what Apple's gotta do.
post #33 of 43
Quote:
Originally Posted by Gazoobee View Post

This all sounds totally evil to me.

Don't you think a company might have higher motives than simply generating revenue? Don't you have any moral compass at all?

If Apple just wanted to make money there are thousands of other ways to go about it and hundreds of opportunities they already passed by in favour of adhering more closely to their stated goals. Why do you immediately assume that it's all about the revenue and that this is Apple's main focus?

If more companies were like Apple, and actually focussed on their customers, what the customers wanted, and making the best product they could make at the fairest prices they can, the world would be a lot better off.

Apple is a business. It's their goal to make money. Sometimes it may seems like they are in business for the benefit of the consumer, but they are required to show a profit for their owners and investors.

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #34 of 43
Interesting move. This together with the patent that forces uses to click on the ad before they can do anything with the computer (enforced at the operating system and not application level) will sure raise some eye brows.

It certainly makes me a little bit uneasy as Apple user.

Mac Pro, 8 Core, 32 GB RAM, nVidia GTX 285 1 GB, 2 TB storage, 240 GB OWC Mercury Extreme SSD, 30'' Cinema Display, 27'' iMac, 24'' iMac, 17'' MBP, 13'' MBP, 32 GB iPhone 4, 64 GB iPad 3

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Mac Pro, 8 Core, 32 GB RAM, nVidia GTX 285 1 GB, 2 TB storage, 240 GB OWC Mercury Extreme SSD, 30'' Cinema Display, 27'' iMac, 24'' iMac, 17'' MBP, 13'' MBP, 32 GB iPhone 4, 64 GB iPad 3

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post #35 of 43
apple should buy eudora and really bring it up to date. it was started by qualcomm and abandoned. it continues to be used and imo, still the best basic mail program. i use .mac and now mobile me as a back up.
post #36 of 43
Quote:
Originally Posted by AppleInsider View Post

Apple's purchase of Quattro follows the acquisition of online music streaming service Lala in December. That deal, said to be valued at $85 million, is believed to pave the way for a cloud-based iTunes service.

I'm not sure why the end of the article mentions Lala when it has nothing to do with this acquisition. It has more to do with the Placebase acquisition and the future of location-based advertising.

Think maps + GPS + relevant advertisements.
Google has become very skilled at location based advertising. They can target advertisements to you based on your computers approximate location. Mobile devices like iPhones and tablets can take that even further by pin-pointing your location. This can open up the door to even more small businesses advertising.
post #37 of 43
Quote:
Originally Posted by Roos24 View Post

Next purchase: a mobile phone company!

Done with all the bickering with AT&T, Verizon and what have you!


I actually wrote an email to Steve Jobs nearly a year ago asking him if Apple has considered the purchase of a mobile telco in the near future in order to help the iPhone reach its true potential. As expected, I didn't get a reply. I'm just hoping that somehow that email reached Steve's eyeballs and made him consider that move in his head just one extra time. Maybe if enough people suggest it, he'll begin to see it as the way to go and consider the move more seriously.

Just sayin'...

"iOS 5 is the best phone we've ever made..." - Phil Schiller - Special Event September 12, 2012

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"iOS 5 is the best phone we've ever made..." - Phil Schiller - Special Event September 12, 2012

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post #38 of 43
First things first, get rid of the stupid name and call it i-Irritation or something instead.
post #39 of 43
Quote:
Originally Posted by SpamSandwich View Post

Apple is a business. It's their goal to make money. Sometimes it may seems like they are in business for the benefit of the consumer, but they are required to show a profit for their owners and investors.

I didn't realize they were having such a big problem showing a profit, I guess their shareholders are pretty mad at them. Well maybe this acquisition can turn things around for them.

Seriously this argument could pretty much rationalize any company doing anything as long as their intention was to make money, and would seem to imply that every shareholder should agree with any move a company makes in the name of making more money. Also, try and find any company on the planet that's "required" to show a profit. I would love to see you show up at the next Apple shareholder meeting, walk up to the mic and announce "As a shareholder, I require you to show a profit!" Try it at any shareholder meeting for any company you own stock in, see what kind of reaction you get. Shareholders expect the board to act on their behalf, other than overthrowing a board and voting on proposals, the ability of the "owners and investors" (stockholders and stockholders?) to "require" anything is pretty much zip.

With all due respect, if you don't plan to cut and paste that same message into every thread regarding every business move by Apple, then maybe you should consider never using it again. It adds nothing to the discussion. It's no different than the brain dead guys who post "Well just excuse Apple for trying to make some money!" Just because it may make a company money doesn't mean it doesn't warrant discussion.
post #40 of 43
Quote:
Originally Posted by IQ78 View Post

Uh, Apple is a public owned company. As such its only obligation is to make money for its shareholders, PERIOD.

That's not true at all. Like I said in another reply, try going to the Apple shareholder meeting and get in front of the mic and tell Steve Jobs, "Your obligation is to make money for me. PERIOD." See what kind of reaction you get. Since Apple doesn't pay out dividends, no one gets to share in the profits made by Apple except Apple. Apple has $39 billion in the bank, if their obligation was to make money for their shareholders why wouldn't they pay dividends on the interest on that money? It would make their shareholders a lot of money - wouldn't they be "obligated" to share the wealth (and that's just paying out on the interest on that money)? No of course not, and they're not going to either. Did they accept responsibility when the stock market crashed and investors lost millions? Of course not. Apple has no control over their share price, stock price drops on big earnings all the time. Shareholders in Apple take their chances just like everyone else, Apple isn't obligated to make you rich.
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