That's why it's good for a business to diversify. If one part of the business is weak then they'll have something else to help lift the company. Apple relies entirely too much on iPhone sales and Wall Street investors always have this in the back of their minds. Any little fluctuation in iPhone sales sends people into a panic. It's true I have no idea what type of business Apple should acquire that can even come close to providing the revenue the iPhone offers. I'm sure it's easier said than done.
I don't know why Apple had to be the only major tech company not offering cloud services like Amazon, Microsoft and Alphabet do. Those companies are always being praised to no end over their cloud services as Wall Street truly believes it's some sort of an unlimited growth business where no one can fail. It's stupid reasoning but that's how Wall Street is.
Samsung has so many divisions that some past problem with the Note 7 doesn't mean anything. I'll bet there will be plenty of consumers rushing out to buy the Note 8 because consumers tend to forget almost anything after a while.
Its even stupider when considering the margins and commodity (by design) of those platforms. They'd be worth it only if there was heavy lock in, which kind of goes against the whole concept of what they offer. The whole thing is that you can take a container like docker, and drop it anywhere and assign whatever resources you need. How on earth will that be a money cow ever!! It can be a very good side business in lean years for user, and for a low margin company like Amazon makes a lot of sense (in that they're leveraging already existing infrastructure, but its not a bonanza). Your offering essentially standardized plug and play resources, you have almost no leverage no matter how big you are... Just like selling slice bread, every eats it but nobody's going to get huge profits from it.
That's why it's good for a business to diversify. If one part of the business is weak then they'll have something else to help lift the company. Apple relies entirely too much on iPhone sales and Wall Street investors always have this in the back of their minds. Any little fluctuation in iPhone sales sends people into a panic. It's true I have no idea what type of business Apple should acquire that can even come close to providing the revenue the iPhone offers. I'm sure it's easier said than done.
I don't know why Apple had to be the only major tech company not offering cloud services like Amazon, Microsoft and Alphabet do. Those companies are always being praised to no end over their cloud services as Wall Street truly believes it's some sort of an unlimited growth business where no one can fail. It's stupid reasoning but that's how Wall Street is.
Samsung has so many divisions that some past problem with the Note 7 doesn't mean anything. I'll bet there will be plenty of consumers rushing out to buy the Note 8 because consumers tend to forget almost anything after a while.
The size of Apple's service business alone is going to be the top 100 Fortune list this year. Yes, their service business is directly related to the numbers of iDevices Apple can sell, but to say that Apple's business is depending on iPhone entirely is incorrect. This is where Apple outsmart those people in Wall Street: ecosystem. By building an interdependent business: hardware, software, services (and yet they can grow independently) around their core business, Apple is a very sustainable company to an unforeseeable future so long people still want their products (whether it's iPhone, iPad or Mac).
I suppose people sometimes forget that advertising is the only sole business of Google while all of their other offerings are very much considered as either "profitless" or "hobbies" and yet Wall Street don't even blink one eye but award them with a very high P/E.
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I suppose people sometimes forget that advertising is the only sole business of Google while all of their other offerings are very much considered as either "profitless" or "hobbies" and yet Wall Street don't even blink one eye but award them with a very high P/E.