Tim Cook doesn't like Apple's low share price

[faethor]

"Tim Cook tried to placate his critics, arguing he was as mad as the next guy about low share prices. He comments, "I don't like it either. The board doesn't like it. The management team doesn't like it. What we are focused on is the long term. This has always been a secret of Apple." "
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IMO Apple stock is still too high and is over valued.

Their products have the single most vendor lead in the marketplace. But, they have difficult fights in tablets and phones. It looks like they're losing steam. AFAIK their new products are nothing but faster processors and more memory. Which is all great but they need more compelling reasons for people if they want to be on the upswing. Jobs left no radical new product in the pipeline but a pipeline of constant upgrades.

This isn't necessarily Tim Cook's fault he inherited a company that had peaked with really new products in the pipeline. I think he's doing fine. The Board is unrealistic that the high price was the Apple normative value.
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I think they could have a product. It wouldn't be new but rebranding. GAMING!

Apple's got lots of games in their store. Create a special Game Storefront. Get a controller bundled in with the Apple TV for a minimal uptick in price and optional add-on buy. They could for sure take on OUYA and perhaps even the WiiU. Apple fans have asked for a gaming type of console for years. I think we'd see good sales. I think lots of articles would be written (read free press) for the ... 'Apple to take on Sony and Microsoft for Christmas 2013 gaming'...

 

[Glaucus]

Back when Apple released the iPhone 4s I felt that that was their peak. The iPhone 5 is a leveling off and I feel the decline will come fairly quick after that. They lost significant market space to Android tablets. They may enter other markets but I'm doubtful that they'll make a big splash as the demographics for TVs are quite different from mobile devices. Also, the rumor is that Apple will release a wrist watch. I'm sure the fanboys will snatch it up, but I stopped wearing a watch when I started carrying around a cell phone. The Apple wrist watch may offer something unique but it doesn't really solve any problems. Google Glass looks more promising in that regard, as the idea behind it is to take Google Now and kinda just make it ubiquitous in your life - you'll no longer need to look at your device to get info nor tell it what info you need. The only real question is, will people be ok with the glasses? Maybe we have to wait until they can put a full computer on a contact lens? A nano-computer powered by body heat, it's possible.

Personally, I wouldn't buy Apple stock these days. As their market share goes down so does their profit margins. This is a double whammy and they'll have a hard time recovering. And their Mac computer line hasn't really benefited a great deal from the iOS devices either and most people I know consider them to be overpriced status symbols. They do have the benefit of sitting on a massive pile of money so they'll be around for a while, but I don't expect them to have any more run away hits any time soon. In fact, I expect Android to be the new Windows in terms of market share.

 

[faethor]

I too think the wrist watch isn't a great idea. Most of the Gen-X I know don't bother with one. Baby Boomers still wear theirs. And it seems the Millenials are wearing theirs. Maybe it's just the bling aspect.

I too see Android taking over. Though it'll be difficult to bet on 1 company as there are so many players in the marketspace.

I think Microsoft has good potential too but it's time to oust their head. It might not be a Windows world but Word/Excel/Exchange are business staples that aren't going away anytime soon. Actually Office 365 could easily take care of my home needs.

 

[robert l. bentham]

IMO Apple stock is still too high and is over valued.

It looks like they're losing steam. AFAIK their new products are nothing but faster processors and more memory. Which is all great but they need more compelling reasons for people if they want to be on the upswing. Jobs left no radical new product in the pipeline but a pipeline of constant upgrades.


I think they could have a product. It wouldn't be new but rebranding. GAMING!

sooner or later somebody will figure out that fan boys dont buy enuff to justify stock valuations like that. so i agree its waaaay to high. and you are also correct about their "new" products providing little that is new. i like the gaming aspect youre talking about and while i agree it would provide a sizable new revenue stream. apple could do something even simpler...sell their products at a price more average consumers can afford. make your money on the increase in software sales.

 

[redrumloa]

Apple as a company and stock is a victime of "big numbers". Crazy growth can only go on for so long before saturation and competition catches up. What really does it for me is the computer segment has declining sales YoY. At least in the short to mid term, stick a fork in the stock. It is done.

 

[faethor]

Apple eats itself Apple projected 60M iPad Maxi's and 40M iPad Mini's. It appears the smaller, more portable, and less expensive option is, surprise, more popular. It looks like there will be 33M iPads and 55M Mini's. Slightly less unit count but notice the swapping of sales. Apple is likely making less profit off the Mini which will hurt the bottom line. If this trend continues we'll likely see sales on the regular iPad.

 

[robert l. bentham]

or the stock drop to a much more believable price... apple needs to hit or quit right now... fan boys are their market.... no new customers... hump it and dump it... (ride the highs and the lows) pick this as a long term loser or at minimum a stay the samer.. in 20 yrs you will think apple was great at itunes

 

[redrumloa]

or the stock drop to a much more believable price... apple needs to hit or quit right now... fan boys are their market.... no new customers... hump it and dump it... (ride the highs and the lows) pick this as a long term loser or at minimum a stay the samer.. in 20 yrs you will think apple was great at itunes

Stocks are funny, it is all forward looking. Id say currently Apple stock is very cheap, but I would not buy it. Share price does not reflect value, but rather price to earning ratio (P/E). The forward P/E is onlu 8.5, but investors are loooking further out and see possible trouble.

I think Apple has problems so I think I'll steer clear of the stock until it is a table pounding bargain ;-)