Market multiples are often broadly and on company-specific basis just a reflection of sentiment from the collective crowd. The sentiment from the market today on Apple is that nobody has any confidence in their ability to navigate this road bump and continue to grow. I don't get this hardware vs software crap..... apple has been sitting on tens of billions of cash for years, they could have diversified their revenue stream but chose not to. Why should management get a pass now for doing nothing when many people have for years said they law of large numbers and saturation would catch up to them. Guess what Tim Cook, it did, you just had your head buried in the sand.
I have no idea what Apple wants to be in 5 years nor does anyone on this board nor does the market. Their primary product growth is negative/shrinking (according to mgmt), why should the market give them a market multiple when mgmt can't articulate a vision for what they will be in 3 years let alone 5, something every other company on earth does???
I could not agree more. Unfortunately many people on this forum simply refuse to look at Apple with a critical eye like this. Lets see what happens in the next five years with Apple. Because Cook has been sitting on billions and refuses to invest into the company so that it may diversify and ass significant alternate revenue streams. Relying on one basic source of revenue stream is not being smart. Everything Apple does is dependent on iPhone and iPad.
I've argued this before
Bullshit. 90% of Google's revenue is advertising. That hasn't changed. Wall Street got all nervous in 2013 when Samsung was the bogeyman. Now everyone is panicking saying Apple has to pivot to so-called services because Wall Street doesn't like hardware companies and iPhone growth is slowing. More bullshit. And how do we know Apple's not working on diversifying? Just because Cook doesn't tell us what's in the pipeline doesn't mean it's empty.
Doing the "dumb" things is exaclty what Apple should do, not because of Wall Street, but because of the future sustainable growth and existance. They need to find new revenue streams based on huge and loyal customersp database. So far they've been sitting on pile of cash and moving in other departments like snails...
So you just want them to buy growth. Wall Street might love that but most people would probably just say Apple is so out of ideas and innovation...
I think people are saying that now. I don't think you get it. Apple needs to diversify. More to the point Apple should have started to seriously diversify a year or two or even three years ago. You cannot depend on one product for all of your revenue streams. It just doesn't make sense. And it has no long term security and stability.
I am happy that the market is "punishing" Apple. Apple got too successful, and didn't have any competition. They need this rap on the knuckles, and probably need a lot more pain before they are forced to change their ways.
- Doing customer unfriendly measures like Soldering RAM into Mac Mini, and intentionally crippling that product are a sign of arrogance. They had a good design that worked well in the previous version - but they couldnt rip off the customer on upgrades - so they decide to solder the RAM in!! - Not launching TouchID on Mac OS even 2 years after it was launched on iPhone, sign of complacence. - Pricing strategies that charge $100 more for additional flash, etc., that too when Apple gets the cheapest prices on the market, are a sign of greed. - Policies where they operate as "Apple knows best, Apple will decide what you can or cannot do", are not the sign of a long term sustainable company. - ridiculous pricing for accessories like cables, coupled with poor quality of iPhone Lightning cables, and insistence on Certified Accessories will only result in people hating the company more! - Things like "you are holding it wrong" don't work forever. Things like compromising battery life for thin-ness and lower weight beyond a point don't work. The damn device has to last through an entire day!
In general, I wonder if people have wondered why Apple generates so much hatred in the general population. Even people who buy Apple products feel hatred to a large extent - especially when you feel ripped off about things like $19 Lightning cables, etc. In fact, I have heard many a time, people wishing that Apple has a massive product recall or some such disaster, so that they get into serious losses.
This is a company that *intentionally* operates on a model saying f**k you to its customers. Or to put it differently, if you don't want to hand over huge chunks of money to us, then f**k you. The polar opposite of a company like Amazon, where Customer Satisfaction is the beginning and end of the story. Apple has even higher customer satisfaction ratings than Amazon - but paradoxically generates even more hatred.
And mind you - I am not even referring to the hatred of people who dont buy Apple products. I am referring only to the hatred and ill will that Apple supporters and customers feel to the company.
Unless Apple dramatically alters its ways to be a more customer centric company, it will continue to face this issue. Irrespective of product successes and sales, people will always bet that Apple wont be able to sustain its game, and it is just one failure away from doom. This is the biggest issue with the Steve Jobs' legacy, and the sooner Apple can get over this, the better for it.
Don't kid yourself that this is about Services, or about China. The market is not stupid. The market knows Apple Pay, Apple Music, iTunes, etc, are massive Content and Services plays, with potential to create huge businesses around them in the future. Maybe the Apple Ecosystem was limited 5 years back, and just getting into shape 2 years back. But Apple is definitely on the upswing in terms of Ecosystem now. For all the hiccups in China, Apple is still going strong there, and is such a small part of the market that they can grow. This is about something else altogether.
This is about the DNA of the company.
I have to agree. I have bought and used apple products since 1987, but lately I have really been put off by the choices available. My wife wanted a top end ultra portable. I got a mac air 11" (this was before new macbook). It had a crappy cheap TN display (on a $1800 computer!) and there were no display alternatives. I really do love my new macbook - but the one port is tough, it needs two - that's not an option. Instead I have to use the half assed dongle which can't charge fast and have usb out
My old 2008 mac pro is old, but I HATE the new one - I refuse to get it, overpriced, double graphics cards and a overpriced relatively pokey CPU, zero upgradability and a rats nest of cables - and I don't want a stupid iMac, I just want a upgradable desktop with an i7 desktop processor and a few PCI slots. WHY is this simple simple request impossible for apple? Where is the customer? Dell makes a zillion form factors with a zillion options to appease everyone and is a smaller company, can't apple make a measly few? Yes it might cost a few million more and lose a few mac pro sale - but it would make customers happy!
It's time to let the customer choose more what they want - smartphones / computers and tablets are not new anymore and people know now more then ever before what they want. Offer more options proactively - don't wait until the ship almost sinks before reluctantly giving in (e.g. big iPhones). And as others have said - stop with the endless upsell strategy of crippled entry level stuff - we know you can milk profit better than anyone, and we pay it - but we feel used and that doesn't build long term loyalty, just give us decent configurations and upgrade options with competitive pricing (yes we will pay an Apple tax - but make it tolerable!)
It's so frustrating - a few relatively simple changes could make people like Apple so much better. I think Apple is it's own worst enemy!
What they lack is the ability to communicate their vision to the market under the current crew. And they have a Board that is populated with a bunch of mediocre has-beens.
I don't know anything about the board but I have to agree that communication and narrative is Apple's biggest issue right now. Cook was hitting his stride there for a while but this last earnings call was not great. Especially the abrupt pivot to hey we're a services company now which is is pretty much BS. I've said for a long time Apple needs to get better at communicating and controlling the narrative. I think it's more important than ever. And if Apple does need to pivot to services then Cook needs to find someone better than Eddy Cue to oversee it.
Apple's narrative needs to be about not just one product but thriving ecosystem of products, tightly integrated though hardware / software / services, that people love. And Apple's ability to leverage / monetize its approximately 600 million loyal user base through services (TV, Music, Apps, iBooks, iCloud, etc.).
So hard to understand. Apple a hair over a 10 to 1 Price to earnings ratio. Google Alphabet almost 32 to 1. Google is great, but Apple is hardly an under-performer.
Bottom line is Apple is known as an innovative company. Yet the CEO is not an innovator.
How does that make any sense?
Has Tim Cook done anything innovative in his entire life? Has Tim Cook ever created a product or invented anything in his life?
The path to restoring Apple's glory is obvious. We need a CEO who is an innovator. How the hell can someone lead the most innovative company on the planet if they aren't innovative? That's like having a Pope who is a know murderer and thief. That's like having a university Dean who can't read. Its like having an executive chef who can't cook.
Apple needs to do to get back on track:
1. Fire Tim Cook and replace him with an innovative CEO who actually built his own company. 2. Make it clear to Wall Street that this will be a new era of Apple. Gross margins won't be as high as the past nor profits. The reason is because they will be building for the future. This is an investment period. But in the end Apple will come out bigger and better.
3. Make clear to Wall Street your broad 3 year, 5 year, and 10 year goals. I'll start. The 3 year goal should be to have over 1 billion iPhone users around the world. 5 year goal is to have services/software revenue be 50% of the companies revenue.
4. Give better value for your products. Stop trying to maximize every single cent of profit. Who cares if margins drop from 40% to 38%. We are playing for the long-term. Give a better experience and customers will return. Stop doing cheap tricks like 16GB phones, pathetic 5GB of free iCloud per account, or smaller flash memory in iMac's, or not updating iPad's for 2 years. Stop making cheaper priced models total crap just to get an upsell.
5. Start new services to monitize the user base. Either buy companies or build your own. Apple at a minimum should have their toes in the following services:
a. Search b. Mobile advertising c. Video sharing (like Youtube) d. TV packages e. home security and automation f. video games g. social h. expand iCloud to the business sector
6. The CEO needs to be upbeat and have tremendous energy. He must be confident, almost dilusional. He needs to be supremely confident about Apple's ability to grow and that excitement and confidence needs to bleed through every time he speaks. Cook is like a dead man talking. So dead. So boring.
Remember it always starts at the top. It always starts with the leader. If the leader lead the rest will follow. Cook is not a good leader for Apple at this point. Cook has done a good job running the supply chain but now the emphasize needs to be on services just as much as hardware. Twice under Cook's leadership Apple has lost $250 billion in market capitalization during strong Bull markets. No other company in the history of man has done that even ONCE. Yet Cook was able to do that TWICE in 3 years. A change is needed.
If no change is made Apple will slowly lag and be nothing like the company Steve Jobs left to the world.
" Fire Tim Cook and replace him with an innovative CEO who actually built his own company."
And who do you propose? Honestly, I can't think of one that has what it takes to lead the likes of Apple, other than maybe Bill Gates.
So you just want them to buy growth. Wall Street might love that but most people would probably just say Apple is so out of ideas and innovation...
I think people are saying that now. I don't think you get it. Apple needs to diversify. More to the point Apple should have started to seriously diversify a year or two or even three years ago. You cannot depend on one product for all of your revenue streams. It just doesn't make sense. And it has no long term security and stability.
Apple doesn't depend on one product. That would be Google, whose entire business model could come crumbling down over something as simple as an ad blocker. Or backlash from people who finally wake up and revolt over the amount of data Google mines from users. Or backlash over websites devolving into nothing more than click-bait filled with adds to generate hits and revenue for their owners with no concern over the quality of their content.
On the other hand Apple sells hardware that people actually want (and something that people need these days - a quality smartphone with a powerful ecosystem and useful Apps). Nothing is going to come along to suddenly unseat Apple from their dominance of the smartphone market. It's just as unlikely as a cola company entering the market and replacing Coke. The iPhone is too deeply entrenched. Even with zero growth they'll still make billions simply selling to people who upgrade every couple years.
Google is like DDT (the pesticide). A product that seems revolutionary and provides numerous benefits. Until people discover how much harm it causes and it almost disappears overnight.
Market multiples are often broadly and on company-specific basis just a reflection of sentiment from the collective crowd. The sentiment from the market today on Apple is that nobody has any confidence in their ability to navigate this road bump and continue to grow. I don't get this hardware vs software crap..... apple has been sitting on tens of billions of cash for years, they could have diversified their revenue stream but chose not to. Why should management get a pass now for doing nothing when many people have for years said they law of large numbers and saturation would catch up to them. Guess what Tim Cook, it did, you just had your head buried in the sand.
I have no idea what Apple wants to be in 5 years nor does anyone on this board nor does the market. Their primary product growth is negative/shrinking (according to mgmt), why should the market give them a market multiple when mgmt can't articulate a vision for what they will be in 3 years let alone 5, something every other company on earth does???
I could not agree more. Unfortunately many people on this forum simply refuse to look at Apple with a critical eye like this. Lets see what happens in the next five years with Apple. Because Cook has been sitting on billions and refuses to invest into the company so that it may diversify and ass significant alternate revenue streams. Relying on one basic source of revenue stream is not being smart. Everything Apple does is dependent on iPhone and iPad.
I've argued this before
Apple is moving beyond the iPhone. It just won't happen overnight. Give it at least five years.
Now that the company is 35+ years old, it's not really the best time to invest in the company. It's a little late...don't cha think? Am I missing something on how the stock market works, a no I think not. The best time to invest in a company to make the most money is in the beginning, not after it's already achieved success? really people. Damn!
I don't know anything about the board but I have to agree that communication and narrative is Apple's biggest issue right now. Cook was hitting his stride there for a while but this last earnings call was not great. Especially the abrupt pivot to hey we're a services company now which is is pretty much BS. I've said for a long time Apple needs to get better at communicating and controlling the narrative. I think it's more important than ever. And if Apple does need to pivot to services then Cook needs to find someone better than Eddy Cue to oversee it.
Apple's narrative needs to be about not just one product but thriving ecosystem of products, tightly integrated though hardware / software / services, that people love. And Apple's ability to leverage / monetize its approximately 600 million loyal user base through services (TV, Music, Apps, iBooks, iCloud, etc.).
I find this theory amusing. It's not like this ecosystem just happened within the year/months. You can't tell me Wall Street was/is completely clueless about iTunes and App Store revenue. That said, since Apple will probably never disclose things in the pipeline they do have to come up with a more compelling story. Or maybe we'll find this slowing growth was just a blip due to tough comps and Apple will be back on a growth trajectory again later this year.
I'm wondering if Steve Jobs was still alive and continued to be at the helm if Apple would be where it is now product wise. I suspect he might have done away with the "s" lineup every other year and make significant changes annually. I owned every iPhone from the original onward. In the early days (2007-2012), Apple's iPhone had leaped so far forward that the company could determine the pace of innovation to their liking. But those days are gone and others have caught up with the iPhone and, in some ways, even surpassed it. Thankfully Apple's ecosystem, excellent build quality and stellar customer service keeps most from straying to Android, but Apple needs to adapt its thinking to the current reality. They gained customers with the larger screen sizes, but now it's more a battle of equals and innovation. Apple can continue to be on top, but they need more then 3D Touch. Much more.
I'm wondering if Steve Jobs was still alive and continued to be at the helm if Apple would be where it is now product wise. I suspect he might have done away with the "s" lineup every other year and make significant changes annually. I owned every iPhone from the original onward. In the early days (2007-2012), Apple's iPhone had leaped so far forward that the company could determine the pace of innovation to their liking. But those days are gone and others have caught up with the iPhone and, in some ways, even surpassed it. Thankfully Apple's ecosystem, excellent build quality and stellar customer service keeps most from straying to Android, but Apple needs to adapt its thinking to the current reality. They gained customers with the larger screen sizes, but now it's more a battle of equals and innovation. Apple can continue to be on top, but they need more then 3D Touch. Much more.
Who has surpassed iPhone? I would argue Apple's products now are better than anything they released under Jobs.
And if Apple doesnt care care about investors why the hell did they spend over $120 billion on buybacks and dividends?
The only solution is for Apple to go private. I've been saying this for years here. Many have called me an idiot for saying so. But the fact is Wall Street will never give Apple the respect it deserves. Apple needs to go private and take its shares off of the public market.
I believe buybacks is a very powerful option. You should be aware that besides other benefits, it leads to the float getting reduced thus disrupting the supply. I agree that dividends are evil, specifically for companies that look for growth opportunities, for those who's business model is based on innovation and competitive advantage. What Tim is doing is converting Apple into another blue chip company with steady income and no vision of the future.
So: Stop dividends, Replace dividends with even more buybacks Buy that freaking Tesla+SpaceX, and put Musk in charge of everything.
People can spin it any way they want, but this is just not good news. The market currently has absolutely no confidence in Apple's ability to generate value from future growth opportunities. And, we can criticize or chuckle at Google all we want (I often get in on it too), but they have a narrative that the market is buying in droves. As it currently does with Facebook and Microsoft as well.
Kudos to them.
Apple truly can and must do better on conveying some sense of who or what it wants to be 2, 5, 10 years out. This is not rocket science. Every major company does it in some form or the other. That's a huge part of what CEOs are paid to do. It involves much more than talking about "industrial era taxes", "dollar versus yuan", etc.
I realize a lot of people here do not own AAPL and therefore couldn't care less, but for those of us who have been very long-term shareholders of the company, this news hurts. There is simply no need for such underachievement. It's bewildering.
(And, please spare me the vacuous stuff about "Wall Street casino" and such; those are simply sound bites).
Apple already conveys what it wants to be in 2, 5, and 10 years out. It does it clearly and simply.
1. Apple wants to make the best products it can make that enrich and improves people's lives.
That is so simple. Apple is not focused on profits. Apple is focused on product.
2. And Apple's product development is simple too: To iteratively and gradually improve its products.
Apple has only a few product. It will never have the number of products its competitors has. Apple is simply more laser focused.
3. And Apple doesn't do revolutionary products except rarely. Apple always does incrementally upgrades products it has.
That is what Apple will always be.
I just changed my default search in Safari on my iPhone to something other than Google.
If another billion iOS users did the same, it would not be pretty for Google next earnings.
I tried that. But the familiarity and general speed called me back. But dude, if it isn't Google who profits, it's Bing and Microsoft. And third alternatives just aren't there yet. So till DuckDuckGo reaches there, I'll use Google with a reluctant mind.
People can spin it any way they want, but this is just not good news. The market currently has absolutely no confidence in Apple's ability to generate value from future growth opportunities. And, we can criticize or chuckle at Google all we want (I often get in on it too), but they have a narrative that the market is buying in droves. As it currently does with Facebook and Microsoft as well.
Kudos to them.
Apple truly can and must do better on conveying some sense of who or what it wants to be 2, 5, 10 years out. This is not rocket science. Every major company does it in some form or the other. That's a huge part of what CEOs are paid to do. It involves much more than talking about "industrial era taxes", "dollar versus yuan", etc.
I realize a lot of people here do not own AAPL and therefore couldn't care less, but for those of us who have been very long-term shareholders of the company, this news hurts. There is simply no need for such underachievement. It's bewildering.
(And, please spare me the vacuous stuff about "Wall Street casino" and such; those are simply sound bites).
Apple already conveys what it wants to be in 2, 5, and 10 years out. It does it clearly and simply.
1. Apple wants to make the best products it can make that enrich and improves people's lives.
That is so simple. Apple is not focused on profits. Apple is focused on product.
2. And Apple's product development is simple too: To iteratively and gradually improve its products.
Apple has only a few product. It will never have the number of products its competitors has. Apple is simply more laser focused.
3. And Apple doesn't do revolutionary products except rarely. Apple always does incrementally upgrades products it has.
That is what Apple will always be.
Apple does not convey anything for that period ahead or even less. Others don't do much either, but they do more for sure.
1. It's quite opposite. Apple cares about short term profits too much which omits them greatly in taking bigger market share and really be what they claim to be: service company. Lower market share also means much less development in service sector. At the same time people are whining about how Google sells only one product it wouldn't hurt noting that the only service Apple does nowadays is reselling IP. They stopped selling it's own software and they failed miserably with mobile ads. On the other side Google sells it's click cash in so many different ways and streams that it is really hard to talk about one product, not to mention that all they need to do from time to time is wind up frequency of ads on their most popular monopolised channels and off you go! And they are far from full whack here... Not to mention, that they've barely scratched the surface of IP reselling...
2. Wrong again. Apple created 3 new product categories just in previous decade. Perception about Apple is much different than that and people don't like it to change to be like you described. Look at the car manufacturers. The most successful are the ones that created new product categories, not the ones that have simply improving existing. Apple is also not laser focused any more. Not even with products. Beside traditional personal computing they'd introduced 2 handheld product categories, tablet. living room device with its own integrated platform and watch. Compare this to other IT hardware manufacturers. It also offers quite a broad range of products in all main categories, especially notebooks.
3. Again: Apple created at least 3 new product categories just in previous decade (iPod, iPhone, iPad, add Apple TV, perhaps). At least two in decade before (Newton, iMac), not to mention large steps in innovations in "standard categories", like notebooks. At least 3 in decade before (Mac, DTP, GUI, not to mention loads of huge increments all over categories, especially in software and always recognising correct hardware trends and support them in early stage like, SCSI, USB, Wifi, Bluetooth, just to name few...) and one simple breakthrough product category in the first decade of its existence. What's going on after 2010 is not what Apple was. Beside the absence of new products it takes the ages to do a relatively small steps ahead in area of services offerings. So, completely wrong here: we are used to Apple to create revolutionary products and market and customers expects them to always be like that.
Well sure, with GOOG's inflated P/E rating of 31.70 compared to Apple's undervalued 10.26.
Wall Street hates Apple's secretive business model and always has.
I agree that GOOG is inflated, but generally. All of them are. Relatively to other competitors in service industry GOOG is undervalued with much greater potential in many other areas that they've barely touched, like IP reselling, which comprises almost all of Apple's services. Overvalued are Facebook, bur especially Yahoo and Amazon. Apple on the other hand is valued as hardware company with accompanying services, which sounds probably right for now. So, 10 is probably "Fair" value for the time being. On the other hand you will see Google grove to 50 in a short period easily.
Comments
My old 2008 mac pro is old, but I HATE the new one - I refuse to get it, overpriced, double graphics cards and a overpriced relatively pokey CPU, zero upgradability and a rats nest of cables - and I don't want a stupid iMac, I just want a upgradable desktop with an i7 desktop processor and a few PCI slots. WHY is this simple simple request impossible for apple? Where is the customer? Dell makes a zillion form factors with a zillion options to appease everyone and is a smaller company, can't apple make a measly few? Yes it might cost a few million more and lose a few mac pro sale - but it would make customers happy!
It's time to let the customer choose more what they want - smartphones / computers and tablets are not new anymore and people know now more then ever before what they want. Offer more options proactively - don't wait until the ship almost sinks before reluctantly giving in (e.g. big iPhones). And as others have said - stop with the endless upsell strategy of crippled entry level stuff - we know you can milk profit better than anyone, and we pay it - but we feel used and that doesn't build long term loyalty, just give us decent configurations and upgrade options with competitive pricing (yes we will pay an Apple tax - but make it tolerable!)
It's so frustrating - a few relatively simple changes could make people like Apple so much better. I think Apple is it's own worst enemy!
http://www.aboveavalon.com/notes/2016/2/01/apples-broken-narrative
And who do you propose? Honestly, I can't think of one that has what it takes to lead the likes of Apple, other than maybe Bill Gates.
Apple doesn't depend on one product. That would be Google, whose entire business model could come crumbling down over something as simple as an ad blocker. Or backlash from people who finally wake up and revolt over the amount of data Google mines from users. Or backlash over websites devolving into nothing more than click-bait filled with adds to generate hits and revenue for their owners with no concern over the quality of their content.
On the other hand Apple sells hardware that people actually want (and something that people need these days - a quality smartphone with a powerful ecosystem and useful Apps). Nothing is going to come along to suddenly unseat Apple from their dominance of the smartphone market. It's just as unlikely as a cola company entering the market and replacing Coke. The iPhone is too deeply entrenched. Even with zero growth they'll still make billions simply selling to people who upgrade every couple years.
Google is like DDT (the pesticide). A product that seems revolutionary and provides numerous benefits. Until people discover how much harm it causes and it almost disappears overnight.
http://www.aboveavalon.com/notes/2016/1/19/apple-is-moving-beyond-the-iphone
I suspect he might have done away with the "s" lineup every other year and make significant changes annually. I owned every iPhone from the original onward. In the early days (2007-2012), Apple's iPhone had leaped so far forward that the company could determine the pace of innovation to their liking. But those days are gone and others have caught up with the iPhone and, in some ways, even surpassed it. Thankfully Apple's ecosystem, excellent build quality and stellar customer service keeps most from straying to Android, but Apple needs to adapt its thinking to the current reality. They gained customers with the larger screen sizes, but now it's more a battle of equals and innovation.
Apple can continue to be on top, but they need more then 3D Touch. Much more.
Daring fireball just posted a link to a fancy analysis:
https://kirkburgess.wordpress.com/2016/02/01/apple-inc-going-for-free-within-8-years/
I believe buybacks is a very powerful option. You should be aware that besides other benefits, it leads to the float getting reduced thus disrupting the supply.
I agree that dividends are evil, specifically for companies that look for growth opportunities, for those who's business model is based on innovation and competitive advantage. What Tim is doing is converting Apple into another blue chip company with steady income and no vision of the future.
So:
Stop dividends,
Replace dividends with even more buybacks
Buy that freaking Tesla+SpaceX, and put Musk in charge of everything.
But dude, if it isn't Google who profits, it's Bing and Microsoft. And third alternatives just aren't there yet. So till DuckDuckGo reaches there, I'll use Google with a reluctant mind.
1. It's quite opposite. Apple cares about short term profits too much which omits them greatly in taking bigger market share and really be what they claim to be: service company. Lower market share also means much less development in service sector. At the same time people are whining about how Google sells only one product it wouldn't hurt noting that the only service Apple does nowadays is reselling IP. They stopped selling it's own software and they failed miserably with mobile ads. On the other side Google sells it's click cash in so many different ways and streams that it is really hard to talk about one product, not to mention that all they need to do from time to time is wind up frequency of ads on their most popular monopolised channels and off you go!
2. Wrong again. Apple created 3 new product categories just in previous decade. Perception about Apple is much different than that and people don't like it to change to be like you described. Look at the car manufacturers. The most successful are the ones that created new product categories, not the ones that have simply improving existing. Apple is also not laser focused any more. Not even with products. Beside traditional personal computing they'd introduced 2 handheld product categories, tablet. living room device with its own integrated platform and watch. Compare this to other IT hardware manufacturers. It also offers quite a broad range of products in all main categories, especially notebooks.
3. Again: Apple created at least 3 new product categories just in previous decade (iPod, iPhone, iPad, add Apple TV, perhaps). At least two in decade before (Newton, iMac), not to mention large steps in innovations in "standard categories", like notebooks. At least 3 in decade before (Mac, DTP, GUI, not to mention loads of huge increments all over categories, especially in software and always recognising correct hardware trends and support them in early stage like, SCSI, USB, Wifi, Bluetooth, just to name few...) and one simple breakthrough product category in the first decade of its existence. What's going on after 2010 is not what Apple was. Beside the absence of new products it takes the ages to do a relatively small steps ahead in area of services offerings.
So, completely wrong here: we are used to Apple to create revolutionary products and market and customers expects them to always be like that.
Overvalued are Facebook, bur especially Yahoo and Amazon.
Apple on the other hand is valued as hardware company with accompanying services, which sounds probably right for now. So, 10 is probably "Fair" value for the time being. On the other hand you will see Google grove to 50 in a short period easily.