I fully expect law enforcement officials to swoop down on Cupertino and haul away the executive brass to account for their misdeeds.
Or, at least, ask Apple’s executives to return money to the shareholders and shut the company down. But, no. Apple won’t play by the same rules, so we customers and Apple watchers are left to suffer.
How exactly is it that Apple doesn’t play by the same rules as other companies? You see, Apple innovates and disrupts staid old markets, remaking them in such a way that Apple gains most of the profits. That causes the company’s stock price to fall.
Haven’t you heard the news? Apple is the most profitable PC maker on the planet, and commands nearly half of all industry profits. Apple takes home about 70-percent of the profits from cell phone sales worldwide, and even more for the tablet market Apple recreated a few years ago.
Apple’s iOS devices are used two to three times more than competing products which indicates that customers like using the iPhone and iPad more than any other device.
Yet, with $150-billion in the bank and most of the industry’s profits, Apple is beleaguered again, therefore the stock is being punished at the hands of Amazon, Google, and out innovated by BlackBerry, Microsoft, and Samsung.
Of course, Amazon’s high flying stock is not indicative of the fact that Apple made more profits last quarter than Amazon has made since, well, ever! Apple is profitable at nearly every level of competitive entry– Mac, iPhone, iPad, iPod, App Store, iTunes Store, yet not only does Amazon lose money, but Google has only a single primary profit leg which is quickly being drained by losses and poor investment on Android. Even most of Google’s mobile advertising dollars are a result of ads on Apple’s iOS devices, not on Android devices.
The rules are clear. A Wall Street stock darling in 2013 is expected to risk everything on a venture that will not necessarily pan out or even return a profit (Amazon Kindle Fire HD, BlackBerry Z10, Nokia whatever, Google Nexus, Microsoft Windows Phone). That makes the stock go up. A company that focuses on growing revenue and profit and excites and entices hundreds of millions of customers to stand in line to buy the latest product is met with derision in an extended sell off.
Apple needs to play by the same rules as Amazon, Google, et al, so the stock price can be saved. Stop disrupting new markets. Stop charging for products. And stop treating customers as if they’re valuable.
Playing by those rules is the sure fire way to make the stock price rise.