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Wall Street adjusts Apple expectations after Tim Cook 'rips the Band-Aid off'
anantksundaram said:
What an utterly idiotic post.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.
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Wall Street adjusts Apple expectations after Tim Cook 'rips the Band-Aid off'
Every time I read comments on this forum, no offense, but I keep being taken aback by the naïveté of many posters. They think Tim Cook's messaging can improve stock price or that analysts are not bullish enough. Yes, Cook can boost stock for a few weeks (as he did with his "messaging" about "positive China" in 2015). And an analyst's upgrade can help for a little bit, but all of this can't repair fundamental Apple weaknesses.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 2
I mentioned it in one of my other posts. The reason why Apple needs a strong cloud because the usefulness of a consumer device now depends more and more on the cloud. Without a strong cloud, iPhone can't really be as useful, as enticing, and as cool as it used to be. Samsung relies on Google's mighty cloud (Ok Google, anyone) and Dropbox relies on Amazon cloud. Apple can't or won't rely on competitors clouds, and its own cloud is slow, unreliable and underpowered. Cook does not appear to understand the depth of the problem. He lets Sir Ive to perfect curvatures of Apple Watch while the Apple train is heading toward derailment.radarthekat said:
You still haven't explained what Apple needs to be doing in cloud.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?
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Wells Fargo cuts Apple price target as stock hovers just above $100
I did want to mention the disaster Eddy Cue is to Apple, who's claim to fame is now long outdated iTunes, but wanted to keep my post concise. As big a role as Eddy Cue has for Apple, Jony Ivy still looms large having the ultimate control of both Industrial Design and Human Interface parts of Apple. Now, can there be a successful Human Interface without a strong cloud? Gimme a break, you know it can't anymore.rogifan_old said:
I think you're quite confused as Jony Ive has nothing to do with Apple's cloud services nor does he run Apple's software engineering teams. Eddy Cue is responsible for running iCloud and Craig Federighi software engineering. But again, Apple stock is down for one reason: rumors of iPhone production cuts. We've already gone through this before while Tim Cook was CEO; in 2013 the sky was falling, Apple was Doomed™ and Apple investors were scared shitless over Samsung, the Next Big Thing™. I swear this is just a cycle Apple goes through and anytime there is even the slightest whiff of possible bad iPhone news the nervous nellies run away from the stock in a panic.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.
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Wells Fargo cuts Apple price target as stock hovers just above $100
If you understood that the stock price is determined not so much by actual profits, but by the rate of change of profits, perhaps, you'd understand why AAPL is a sell. If Apple profits tanked 75%, an unlikely scenario as it is, the stock would tank mightily.kraytinprime 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.
