Actually, pay not any attention to almost anyone who criticizes Apple’s business, business model, or executive staff. They’re not perfect, but based upon the basics– revenue, profit, dividends, and stock price– somebody is doing a good job.
A good job? Where? How?
Let’s back up a few years when critics were howling about Apple’s failed Watch. Market critics would have you believe that everything Apple’s CEO Tim Cook touches turns to either, 1) dirt and then dies, or, 2) gold. While APPL isn’t looking good right now it isn’t as if there was no handwriting on the wall regarding iPhone sales in China, which, according to Apple is real noise, while the rest of the world’s sales are doing well.
According to Cook, the recent Q1 shortfall is due to China. Oh, and what of all these so-called failed businesses that Cook is in charge of now that co-founder Steve Jobs bought the farm with his NeXT and Pixar earnings?
Famed analyst and market contrarian Horace Dediu crunched a few numbers and it looks as if Apple has grown so big with such enormous numbers so far in the black that few people remember how the iPod grew larger than the Mac. Guess what?
The Apple Watch is now a decidedly bigger business than the iPod ever was
Apple Watch is now a bigger revenue and profit stream than iPod ever was, and iPod once was larger than the Mac.
Large stars tend to have large planets
Relative to the Sun, the planet iPhone is like the planet Jupiter; plenty of nearby planets of significance and value and nobody except contrarian analysts like Dediu are paying attention.
Remember this business axiom when applied to stock prices:
Buy low and sell high
For all the APPL stock price drops in the past few months, there remains a seller for each share– and a buyer. Someone is buying Apple’s stock.
Apple is a large star. The largest planet revolving around Apple is iPhone (Jupiter). Other large planets– but not by comparison– are Saturn (Services), Mac (Uranus), iPad (Neptune), and, without any stats to back up my assertion, probably Watch (Earth). Kudos to Universe Today for the comparison data.
Earth is a valuable planet and home to Apple Watch, also a valuable revenue and profit stream. We can choose to think Watch is insignificant but that’s like comparing Mercury to Jupiter. We’re looking at multiple orders of magnitude in difference.
Apple Watch is not a sad product. Market analysts and Apple critics are sad because they don’t understand, 1) math, 2) physics, 3) marketing, 4) business models, and, 5) how to compare and contrast businesses and their products.
When it comes to Apple, APPL, or almost anything else, ignore the nattering nabobs of negativism because they don’t know Diddly Squat.