No company in the computer or mobile wireless business has ever survived with a business model where they own the entire stack - development tools and compilers, operating system and APIs, hardware design and manufacturing, distribution channels, etc. Problem is they compete with the entire world - Google on the software side, Samsung, LG, HTC, Nokia, etc., etc., etc., on the hardware side, dozens of compilers and development platforms, and millions of members of the Open Handset Consortium. There is simply no way to overcome such a scale disadvantage. It's exactly what happened to Blackberry. Now Apple is 2 years behind on phone technology and desperately trying to find a way to exploit the installed base.
And the fact that they have so much cash on hand should be viewed as a negative sign because it means that they have no better use for the money. If they had any leadership they would take all those billions and move into an entirely new business. But the best they can dream up is that ridiculous Apple TV.
Jobs took the company in brand new directions - music content, iPod, iPad, iPhone - all revolutionary. But now they are a rudderless ghost of a once great business. Google and Samsung will continue mopping the floor with Apple. In two years they'll be a distant memory.
When it's all over I'll make sure to read the Harvard Business School case study to see if I missed anything.
actually the problem of apple is that they simply are not introducing new products at enough price points. they make the mistake of believing that they should introduce all new products at the high end and allow older products to be down-priced. instead they need to introduce new products at a variety of price points and form factors. that will solve their problems, and allow them to compete in growing global markets. the biggest problem for apple is that the US market is now mature and growing slowly, and apple does not have effective international strategies.
""""""""""""""""""Tough to imagine a worse earnings report. """"""""""""""""""""""""""""
That has to be the dumbest post I've ever read on the internet in 15 years. What I liked about it is, it shows just how incredibly stupid you really are. Mister Harvard Business School. Did you think adding that to your post would give you creditably? After making a statement like **** Tough to imagine a worse earnings report.******* Apple posted $43 Billion in revenue and $9.5 Billion in profit MORON!!!!!!!! You sure know a lot about business. Go hump your sister's cat and leave investing to real investors with real money. LOSER......LMFAO!
This is a very good post, though the jury is still out on the conclusion. You are exactly right with the "compete against the world" statement. This is why Apple didn't thrive during the PC explosion in the 1990's and early 2000's....they were forced to reinvent themselves because the entire world (hardware and software mfg's) were able to produce better, faster, cheaper devices. They are facing the same thing in the smartphone space - and if they were smart they would defend that space with multiple billions of R&D to kick everyone else in the rear. AAPL doesn't realize what a golden opportunity it has with subsidized communication devices. They won't find a replacement once they lose the mojo - and they are really hurting right now. Pride will kill them. They gotta keep moving and fast or this gig is up.
Problem with the business model is aapl has to invent new technology every year to keep up with past success trend. They simply can't. The watch is a joke! The TV is going to be done by competitors first. Samsung already launched a smart Tv last month. Facebook has a smart phone now...Google and Samsung are all over every product aapl makes and selling for 1/2 the price. Look at the great Samsung ad for their tablet! Look for $300 stock price to reflect the slashed earnings estimates from analysts today! Its coming.
Sentiment: Strong Sell
Maybe you should go back to the Harvard Business School and try to learn something this time. Don't bother responding, you have nothing of value to add to this or any other message board. You should be embarrassed posting the Harvard Business School in your post......
Unfortunately, you waved all the qualitative tools leading to imperfect and inadequate measurement and management of technology risks. You can use a technology Investment Matrix to better relate the role of any technology investment to the business processes it supports. Use of this matrix leads to a better appreciation of key risk issues and risk management strategies, I sure you took this into consideration with your well thought out posting?
It's just you missed the entire business model of what and how they built Apple. In your post, you have Apple one step up from Enron. None of us were impressed with your attempt at hanging on the coat-tails of the " Harvard Business School " where both my son's are attending with Mathematics Grants. To this day, Apple products and services are the best of the best in this sector. There's a reason they had over $43.6 billion in sales and quarterly net profit of $9.5 billion And it isn't because of your so called broken business model. They product cycle range is from 18 to 24 months. As far as Apple the company? It will be fine!
They said that about Mac. It's not about profit sharing. In the end, it's who is got superior products, and how much profit you can get from it. Apple seem to be doing just fine on that front.
In fact, zdnet just recently release the "most reliable Windows PC", and it's a Mac, believe it or not.