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Wall Street adjusts Apple expectations after Tim Cook 'rips the Band-Aid off'anantksundaram said:jdnc123 said:iTunes sucks. iCloud sucks. They have more resources than any company that has ever walked the face of the planet and they can't get software/services working well or grow at all.
jdnc123 is a voice of reason here and understands deeper issues going on with AAPL. However, members like anantksundaram do a real disservice to this forum by their childish insults, who need to take your rose-colored glasses off and stop pretending they are true experts. Making a lot of posts (anantksundaram has over 16,000) does not turn quantity into quality.
Wall Street adjusts Apple expectations after Tim Cook 'rips the Band-Aid off'thewhitefalcon said:The analysts all seem reasonable here. Cook did well with the messaging overall, I think.
Cook is not a product guy, Cook is not a service guy. He does not understand what makes consumers tick. And analysts, most of the time, are behind the train, too afraid to point where AAPL actually is going, which is down. Safety in numbers. The only analyst who said AAPL goes to $60 got fired. And if anything, the guy is an optimist.
Analysts hopes about iPhone 7 catapulting AAPL to $140 are befuddling. How can iPhone 7 be a hit, when what surrounds and supports it, and most importantly cloud services, suck under Cook's management?
Let me remind you how vitriolic many commenters were here when I insisted that Apple needs to produce iPhones will larger screen sizes back in 2013. Now when you look back, their comments seem very... naive.
Apple's competition is going to have a tough year in 2016: part 2radarthekat said:enature said:I didn't think I had to spell it out but it appears that some folks here narrowly think "cloud" means just iCloud. Cloud means all the services, speed, computational power and AI (AI here means Artificial Intelligence and not Apple Insider) that you get from the cloud. "Cloud" can't be created overnight because it requires vast investment in hardware and proprietary software, all fine-tuned and continually updated to keep the edge.
Currently, only two companies have a really strong cloud: Google and Amazon (even Dropbox rents Amazon cloud). Partly because of this advantage but also for other reasons not discussed here, I predict that Alphabet and Amazon will surpass Apple in market valuation.
Amazingly, in his two-part exceedingly long piece DED barely mentions the fundamental problem Apple has with the cloud. It can't be easily fixed and Apple appears to be lacking the right people to fix it. Cook had plenty of time to address the problem but failed spectacularly.
And as Apple stock continues to tank, DED would keep coming up with more pervert and self-calming statistics like the one he used to show that Apple Watch by revenue beats Fitbit. Common, DED... Fitbit's market valuation is over 100 times less than Apple's. What else do you expect when comparing the giant to an ant?
Wells Fargo cuts Apple price target as stock hovers just above $100rogifan_old said:enature said:I don't know if you are valuation blind or what. I've been following this stock very closely for the last 11 years. It is clear as day, that AAPL profit growth can't support its current stock market. Please, do not refer to Apple's low P/E ratio or other backward statistics that essentially boils down to "look, Apple was great in the past, so it must be great in the future"
At the very heart of the ongoing demise of Apple is that its products are not that impressive relative to competition as they had been before. As Jobs said, Cook is not a product guy. Job's foresight is evident in the several misguided steps that Cook took in product development and personnel.
For example, take a look at Cook's promotion of Jony Ivy. The guy is a very good hardware designer but he is not a software guy. Ivy tries to perfect minute OS details like curvature or spacing of letters (San Francisco font anyone?), but fails to address the elephant in the room: Apple sucks, and sucks mightily, in the cloud! Without a strong cloud and everything that comes with it (effortless syncing, AI assistance, ability to move smoothly from one device to another), today's smartphone or computer company can't succeed. Apple Watch is another manifestation of Ivy's misguided drive for perfection. I could go on but am afraid Apple die hards would call me a troll (you probably would call me a troll anyway because you are so invested in Apple that it hurts to hear the painful truth).
In short, under Cook's wings Apple products are not so much above and beyond the competition to justify Apple being the most valuable company in the world. The profit growth will decline, low P/E be damned, and with the lower profit growth so will go AAPL price. Mark my words, the day is coming when Apple will be dethroned from its "the most valuable" title, as said as it might be.
Ultimately, I blame not Eddy or Jony for Apple's loss of profit growth, but Cook - the captain of the sinking ship.
Wells Fargo cuts Apple price target as stock hovers just above $100kraytinprime said:Google only makes $15 billion in profits a year and Apple makes $53 billion. Even if Apple's profits tanked 75% they would still make more profit than Google.