Steve Jobs to Apple investors: 'hang in there'
In a private communication last week, Apple chief executive Steve Jobs acknowledged the beating his company's shares have taken during this time of economic uncertainty, but remained confident that investors would inevitably recoup their losses and then some.
"Wow... what a remarkable last few days," he wrote in an email to employees, a copy of which was obtained by AppleInsider. "Our stock is being buffeted around by factors a lot larger than ourselves."
The Apple co-founder expressed sadness for many of the company's investors who may have seen their investments fall under water, but encouraged those with positions to put the matter into perspective by examining the performance of Apple shares over the past 24 months.
"As you can see, we have outperformed many other blue-chip tech companies, including Google," he wrote, tacking on a stock performance comparison chart for illustration. "I continue to believe that our fundamentals - our remarkable people, our clear and focused strategy, our new product pipeline, our 200+ retail stores, our $18 billion of cash in the bank with no debt, etc., will serve us well in the coming months and years."
Jobs, whose 5.54 million shares make him the single largest shareholder in Apple behind Fidelity Investments, was among the hardest hit by Wall Street's recent sell-off, with losses in company shares alone totaling an estimated $377.5 million on paper since the start of the new year.
In closing out his remarks to employees, Jobs remained upbeat, reiterating confidence that those who remain loyal to their positions in Apple would reap the benefits in the long run.
"I believe that investors who stay with us will be rewarded as the market's confidence is restored over time," he wrote. "Hang in there."
"Wow... what a remarkable last few days," he wrote in an email to employees, a copy of which was obtained by AppleInsider. "Our stock is being buffeted around by factors a lot larger than ourselves."
The Apple co-founder expressed sadness for many of the company's investors who may have seen their investments fall under water, but encouraged those with positions to put the matter into perspective by examining the performance of Apple shares over the past 24 months.
"As you can see, we have outperformed many other blue-chip tech companies, including Google," he wrote, tacking on a stock performance comparison chart for illustration. "I continue to believe that our fundamentals - our remarkable people, our clear and focused strategy, our new product pipeline, our 200+ retail stores, our $18 billion of cash in the bank with no debt, etc., will serve us well in the coming months and years."
Jobs, whose 5.54 million shares make him the single largest shareholder in Apple behind Fidelity Investments, was among the hardest hit by Wall Street's recent sell-off, with losses in company shares alone totaling an estimated $377.5 million on paper since the start of the new year.
In closing out his remarks to employees, Jobs remained upbeat, reiterating confidence that those who remain loyal to their positions in Apple would reap the benefits in the long run.
"I believe that investors who stay with us will be rewarded as the market's confidence is restored over time," he wrote. "Hang in there."
Comments
However, the reference to a "...our new product pipeline..." caught my eye. I am sure that they have lots of interesting stuff up their sleeves!
I'm happy that Steve's giving a pep talk, but actions speak much louder than words. A 3G iPhone soon, more aggressive notebook pricing, filling some holes in the Mac product line-up (the Air may be a bit niche)... all this would do a lot to help AAPL out during these tough times.
That said, I'd still definitely hold onto my shares...
.
I'd still definitely hold onto my shares...
.
Not only am I holding onto mine, I'm getting set to buy a little more. I'm not giving anybody advice, I'm just sayin' . . .
Whoa... Steve has 5.5 million shares. With the stock price drop, is he no longer a billionaire?
Only with AAPL.
He still has 138 million shares (~7%) of Disney at ~$30 = $4,140,000,000, I don't think he's worried about his billionaire status at all.
Only with AAPL.
He still has 138 million shares (~7%) of Disney at ~$30 = $4,140,000,000, I don't think he's worried about his billionaire status at all.
Disney gave him 7% of the company? Wow.
Think about how many mock turtlenecks and pairs of Levis he can buy with that!
.
Also I don't see google in the same light as HP and Dell. That's not a good comparison.
A 3G iPhone soon, more aggressive notebook pricing, filling some holes in the Mac product line-up (the Air may be a bit niche)... all this would do a lot to help AAPL out during these tough times.
That said, I'd still definitely hold onto my shares...
.
Lowering margins will not increase AAPL, plus it would dilute the brand.
I'm holding onto mine too.
Nice letter, and likely a correct prognostication, but it's a lot of CEO boilerplate.
However, the reference to a "...our new product pipeline..." caught my eye. I am sure that they have lots of interesting stuff up their sleeves!
You are too cynical about Jobs' comments. But I hope the you are right about new products.
Not only am I holding onto mine, I'm getting set to buy a little more. I'm not giving anybody advice, I'm just sayin' . . .
I would take that advice if I had any money
Whoa... Steve has 5.5 million shares. With the stock price drop, is he no longer a billionaire?
He's going to have to start taking $2 a year for his salary now.
Boy I really wish this new product pipeline would ramp up though. Only the MBP and Mac Pro are decent just now and the MBP still needs some Penryn in there.
I think Apple just needs to pull their finger out. There's just not enough coming out to warrant any company growth. I think that it's a good strategy to even out the updates to ensure some longevity but people are getting tired of waiting. No Geforce 8 series for over a year was just laughable, the enclosure redesigns are welcome but hardly worthy of much interest when they don't offer significant improvements - the opposite in the case of the iMac in fact.
I'd say if they really want to impress people, maybe do a similar metallic overhaul on the Macbook as the MBA, either upgrade or replace the Mini already and introduce Penryn across the board within the next 4 weeks. Otherwise it's below 100 you go AAPL and rightly so.
Lowering margins will not increase AAPL, plus it would dilute the brand.
Nah. The stock got hammered because, above and beyond the US's economic outlook being dismal, the 'Apple growth story' is not what it once was, in investors' eyes.
The iPod was flat year over year, and the iPhone is not doing very well in Europe. A 3G iPhone looks to be a ways off. US sales are the lion's share of iPhone sales, but again, the US is likely heading towards recession. Mac sales are a bright spot... they're up, but they could be up much more with some more aggressive pricing and some new products that aren't niche, but rather fill some obvious product lineup holes.
More aggressive Mac pricing wouldn't dilute the brand anymore than the iPhone price cut diluted the iPhone's appeal... that'd only happen if Apple started trying to compete in the bargain basement portion of the market, which is certainly not what's being suggested.
But it would be refeshing if Apple were more aggressive in the midrange of the computer market. Instead, they do things like getting rid of the $999 iMac, and even their cheapest, bottom-end notebook is still more expensive than the industry average notebook price, i.e. Apple's notebook lineup starts in the upper midrange. Ugh.
How much more of a growth story would the Mac business be if Apple said, "We don't want just the high-end, we want the midrange too... with a vengeance."
Far as the low-end of the computer business goes, who cares, no significant margins there... the eMachines bottom feeders can fight over that.
.
Boy I really wish this new product pipeline would ramp up though. Only the MBP and Mac Pro are decent just now and the MBP still needs some Penryn in there.
I think Apple just needs to pull their finger out. There's just not enough coming out to warrant any company growth. I think that it's a good strategy to even out the updates to ensure some longevity but people are getting tired of waiting. No Geforce 8 series for over a year was just laughable, the enclosure redesigns are welcome but hardly worthy of much interest when they don't offer significant improvements - the opposite in the case of the iMac in fact.
Can't say I disagree with too much of that.
.
I'd say if they really want to impress people, maybe do a similar metallic overhaul on the Macbook as the MBA, either upgrade or replace the Mini already and introduce Penryn across the board within the next 4 weeks. Otherwise it's below 100 you go AAPL and rightly so.
Ummm. You're joking right?
Disney gave him 7% of the company? Wow.
No, he received 7% of Disney stock for Disney's acquisition of Pixar, which he owned.
No, he received 7% of Disney stock for Disney's acquisition of Pixar, which he owned.
Yeah, I know. 'Gave' was used loosely.
.