Agree. This, as well as the German "hack" of Touch ID (and other articles). It's too easy to fool the masses with a well-written statement and/or incomplete YouTube video.
For everything Apple achieves there will be those who try to turn it into something bad and Wall Street backs it up. Apple has been backing the wrong people all this time or certainly making a long list of enemies. Maybe Apple needs to buy off some politicians or start creating charitable organizations to get back some credibility. How about Apple buying a couple of news media companies to start pumping out positive news for itself? I'm at a loss at what Apple needs to do to get some respect from big investors. It just doesn't seem like it's going to ever happen.
I don't always agree with all of the analyst backlash on this site, but in this case I have to agree that these people are hilariously clueless (apart from Gene Munster, who is actually an intelligent and thoughtful guy even if his predictions aren't always perfect). For Cannold to mourn the decline of BlackBerry and then accuse Apple of "trying to squeeze every last bit of profit it can out of an aging, shall we call it, iStone" demonstrates a total bias-driven blindness that seems to keep him from having any accurate or relevant insights. I'll make a prediction of my own: things are not going to go well for poor old Sandy. I guess not everybody can be Horace Dediu.
Say what you will about Apple, but their goals are simple to define, and they seem to be achieving them well--they are making the best products in the world (not all would agree, but there is a very solid argument for this), and they are making a very handsome profit by any even slightly reasonable measure.
Let's follow through Munster's logic and see were it gets us. I heard him say Apple sold through 5.5 M phone. That means there are 3.5 M phones in inventory somewhere. It is pretty well accepted that every 5S sold. That means all the unsold phones where 5C.
Reports on the ratio of 5S sold compare to 5C are between 3:1 and 5:1. Let's use the middle number of 4:1. Using that, for every4 5S sold, Apple sold 1 5C. So, the break down on phones sold from Munster's projected numbers is 4.4 M 5S and 1.1 M 5C.
Bringing the two ends together, Munster said Apple sold 1.1 M 5C and has 3.5M unsold 5C.
Apple is renowned for their inventory control. I find it a little hard to believe that Apple would miss the mark by a factor of 3 in initial production.
The company that has changed the world of personal computing, the company that can sell over 9 million phones in 3 days, the company that makes billions each and every quarter and a company that could change the world of wearable computing and the living room... Has market value of about 450 billion...
And a company that has only one sense of existence called "ads", company that wants to have two or three fingers in your ass to get more info about you, company that wants to control not just your computer but your iPhone, tablet, refrigerator, internet cables, electricity, your online life, your DNA, the internet itself... company that copies any good ideas shamelessly and makes them "open source" and even is pround on how open it is and how it makes everything aivable for everyone... Has market value of almost 300 billion dollars.
I think this doesn't need any commentary. It's just a bad world for Apple... maybe human kind doesn't even deserve such company.
I wish these analysts are held accountable to their views. If they say Apple will hit only 500 in 12 months and Apple is at 600, they should be fired. Admit you're wrong, folks.
Appleinsider, why bother giving this guy any space on your website. Kill stupid articles like these by not posting them at all.
Comments that do not contain assertions but only express anger and derision have the effect of lending credence to the author's arguments. Generally, the more of them you see here, the more effective and hard-hitting Daniel's argument has been. It's not just a pleasure to read his forthright editorials, but also to browse the enraged reaction of those who can muster no honest retort, yet cannot resist a bumbling, blustering remark, which comes across to other readers as a clear validation of Daniel's perspective.
The real joke is that the more these fools submarine AAPL, the more bang for the buck they give Apple. AAPL should be over $600/share, but it's less than $500/share. That's a 20% discount, minimum, on the stock. So for every dollar Apple spends buying back its own stock, it gets back $1.20 worth of stock. Granted, it gives some of that stock back to the market in the form of stock options to its better employees, but even there it gets a bargain!
Over time, even the dim bulbs who are presently horribly undervaluing AAPL will wake up and smell the coffee. In the meantime, Apple and those holding AAPL long are laughing all the way to the bank!
Since Jobs' return in 1996, Apple launched industry changing new products in the 1998 iMac, 2001 iPod, 2007 iPhone and 2010 iPad. Everything else has been a "sequel" of sorts. That works out to one big new thing about every four years.
They forgot to mention Steve's most important industry game changer - The Reality Distortion Field. Apple didn't actually sell 9 million iPhones, they used 'Jobisan' mind manipulation to force people to queue up for the new iPhone. Totally unfair tactic and should be illegal. /s
What these Anal-ists are not realizing is that innovation happens in all forms. Innovation can happen in sales, strategy, pricing etc. Tim Cook and his team know better how to run the company. Just because Wall Street thinks that there is a demand for low-end phones, it doesn't mean that Apple should come up with Junk. Back off and find another company you think you can control. There were few idiots who had a neutral rating for Black Berry prior to their meltdown!!! All these Analysts have one purpose, stock manipulation. The next thing they will go after is Facebook, after they rake-in all the profits.
Apple makes great products and consumers love them and are willing to pay a premium for it. That's the end of the story. Investors have seen phenomenal growth in the stock, consumers have witnessed a technological revolution, and competition has bettered its products. What else do you need? Get lost all you Apple haters.
I think the issue with the media and the "analysts" is basically that Apple is an unconventional company.
Apple has ALWAYS done things differently and not listened to the pack. The analysts wanted a cheap phone, but Apple does not DO cheap. This is netbooks all over again. The only difference is that when the netbooks phase was happening, the Apple CEO was Steve Jobs, and by virtue of his LONG and extremely SUCCESSFUL track record, the analysts knew that only they would look stupid by questioning Jobs (especially since Apple was making record profits while not listening to the analysts...sounds familiar?).
With Tim Cook (and all the other executives) in charge (who have an equally long track record of success but are not revered in hte media like Jobs was) they feel more empowered questioning successful strategies by Apple.
Basically, the analysts absolutely know what Apple is doing is wrong, because obviously a normal company would have released a $49 off contract POS loss leader already, and so the fact that the evidence shows them to be wrong is only proof that reality is at fault.
Which is why they can publish an article with the headline "Why record sales are bad news" and still have any credibility left.
Comments
I don't always agree with all of the analyst backlash on this site, but in this case I have to agree that these people are hilariously clueless (apart from Gene Munster, who is actually an intelligent and thoughtful guy even if his predictions aren't always perfect). For Cannold to mourn the decline of BlackBerry and then accuse Apple of "trying to squeeze every last bit of profit it can out of an aging, shall we call it, iStone" demonstrates a total bias-driven blindness that seems to keep him from having any accurate or relevant insights. I'll make a prediction of my own: things are not going to go well for poor old Sandy. I guess not everybody can be Horace Dediu.
Say what you will about Apple, but their goals are simple to define, and they seem to be achieving them well--they are making the best products in the world (not all would agree, but there is a very solid argument for this), and they are making a very handsome profit by any even slightly reasonable measure.
Reports on the ratio of 5S sold compare to 5C are between 3:1 and 5:1. Let's use the middle number of 4:1. Using that, for every4 5S sold, Apple sold 1 5C. So, the break down on phones sold from Munster's projected numbers is 4.4 M 5S and 1.1 M 5C.
Bringing the two ends together, Munster said Apple sold 1.1 M 5C and has 3.5M unsold 5C.
Apple is renowned for their inventory control. I find it a little hard to believe that Apple would miss the mark by a factor of 3 in initial production.
Something does not add up.
The company that has changed the world of personal computing, the company that can sell over 9 million phones in 3 days, the company that makes billions each and every quarter and a company that could change the world of wearable computing and the living room... Has market value of about 450 billion...
And a company that has only one sense of existence called "ads", company that wants to have two or three fingers in your ass to get more info about you, company that wants to control not just your computer but your iPhone, tablet, refrigerator, internet cables, electricity, your online life, your DNA, the internet itself... company that copies any good ideas shamelessly and makes them "open source" and even is pround on how open it is and how it makes everything aivable for everyone... Has market value of almost 300 billion dollars.
I think this doesn't need any commentary.
It's just a bad world for Apple... maybe human kind doesn't even deserve such company.
Go and short the stock, its going to $350. No need to whine!
Did I just whisper "See you at new highs in 2014"
Stand-up comic is a job too
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Appleinsider, why bother giving this guy any space on your website. Kill stupid articles like these by not posting them at all.
Comments that do not contain assertions but only express anger and derision have the effect of lending credence to the author's arguments. Generally, the more of them you see here, the more effective and hard-hitting Daniel's argument has been. It's not just a pleasure to read his forthright editorials, but also to browse the enraged reaction of those who can muster no honest retort, yet cannot resist a bumbling, blustering remark, which comes across to other readers as a clear validation of Daniel's perspective.
Over time, even the dim bulbs who are presently horribly undervaluing AAPL will wake up and smell the coffee. In the meantime, Apple and those holding AAPL long are laughing all the way to the bank!
Who is laying off 40% of their workforce because no one wants their crappy product? (Blackberry http://www.webpronews.com/blackberry-suffers-1-billion-lost-cuts-40-of-staff-2013-09)
I have to give Sandy credit for having some seriously large cojones for going public with this opinion, even if it is totally deluded!
Blackberry devices no longer have a keyboard... Maybe that's why they don't sell, who knows!
Q10
Since Jobs' return in 1996, Apple launched industry changing new products in the 1998 iMac, 2001 iPod, 2007 iPhone and 2010 iPad. Everything else has been a "sequel" of sorts. That works out to one big new thing about every four years.
They forgot to mention Steve's most important industry game changer - The Reality Distortion Field. Apple didn't actually sell 9 million iPhones, they used 'Jobisan' mind manipulation to force people to queue up for the new iPhone. Totally unfair tactic and should be illegal. /s
What these Anal-ists are not realizing is that innovation happens in all forms. Innovation can happen in sales, strategy, pricing etc. Tim Cook and his team know better how to run the company. Just because Wall Street thinks that there is a demand for low-end phones, it doesn't mean that Apple should come up with Junk. Back off and find another company you think you can control. There were few idiots who had a neutral rating for Black Berry prior to their meltdown!!! All these Analysts have one purpose, stock manipulation. The next thing they will go after is Facebook, after they rake-in all the profits.
Apple makes great products and consumers love them and are willing to pay a premium for it. That's the end of the story. Investors have seen phenomenal growth in the stock, consumers have witnessed a technological revolution, and competition has bettered its products. What else do you need? Get lost all you Apple haters.
I think the issue with the media and the "analysts" is basically that Apple is an unconventional company.
Apple has ALWAYS done things differently and not listened to the pack. The analysts wanted a cheap phone, but Apple does not DO cheap. This is netbooks all over again. The only difference is that when the netbooks phase was happening, the Apple CEO was Steve Jobs, and by virtue of his LONG and extremely SUCCESSFUL track record, the analysts knew that only they would look stupid by questioning Jobs (especially since Apple was making record profits while not listening to the analysts...sounds familiar?).
With Tim Cook (and all the other executives) in charge (who have an equally long track record of success but are not revered in hte media like Jobs was) they feel more empowered questioning successful strategies by Apple.
Basically, the analysts absolutely know what Apple is doing is wrong, because obviously a normal company would have released a $49 off contract POS loss leader already, and so the fact that the evidence shows them to be wrong is only proof that reality is at fault.
Which is why they can publish an article with the headline "Why record sales are bad news" and still have any credibility left.