Look all you want and all day to find the flaws in Apple, Inc. You won’t find many. There are a few, and I’ll get to those in a moment, but Apple isn’t broken in the way critics think the company is broken.
Apple’s biggest problem these days, other than a few I will outline below, has less to do with Apple, Inc. and more to do with the lack of insightful analysis among the company’s flawed critics.
CEO Tim Cook has not failed Apple. And, conversely, Apple has not failed Tim Cook. By almost any measure, Apple is cranking on 12 cylinders and screaming down the track faster than any competitor, closing in on a trillion dollar valuation, with more profits in the past quarter than Amazon has made since the company started in Jeff Bezos mind.
Gosh darn Dave Gershgorn put his idea of analysis this way:
Dramatically fewer people are buying the latest iPhones.
Facts? We don’t need no stinkin’ facts! Gosh darn quoted iPhone sales estimates from a numbers guesstimator which turned out to be holy wrong and wholly imaginary as Apple’s most recent quarter was another record breaker.
How about this one from Gordon Kelly:
Apple Warns iPhones Have A Serious Problem
Oh no! I didn’t know that. And I have an iPhone. So, what’s the skinny?
Apple is warning Authorized Service Providers that iOS 11.3 and iOS 11.3.1 have been crippling iPhones. Most notably the iPhone 7 and iPhone 7 Plus, which are unable to use their microphones during calls or be heard at all during FaceTime chats.
Funny thing. True story. A bunch of folks where I work have iPhones and not one of them claim to have a serious problem. Many of those have iPhone 7 models and still won’t claim to have a problem.
Here’s the skinny you won’t read on Forbes, Business Insider, Fortune, or any of the gazillion digital trade rags that follow all things bad about AAPL. Software has bugs. Sometimes those bugs are visible. Sometimes not. The microphone bug is not all that visible to the great unwashed masses of iPhone customers, but it’s there.
Worthy of a headline? Probably not.
Regarding the aforementioned Fortune Regurgitation Machine, Mohanbir Sawhney sawed away at the same old saw. iPhone X’s epic fail.
Apple… plans to cut its production target in half for the iPhone X because of slower-than-expected sales.
Expected by whom? Or, is it who? Maybe, what? Regardless, it turned out that everything Sawhney outlined as Apple’s only choices in the face of dropping demand turned out to be wrong.
Instead of perpetuating the bifurcated market, Apple needs to upgrade the features of its iPhone 8 and 8 Plus. It could adopt OLED screens across all three products or it could put Face ID into all its phones.
And puppies. One iPhone, one puppy. Or, kitten. But you have to return the puppy within the 14 day return period.
The once reliable Mark Gurman, whose past spilled beans on Apple seemed more like soothsaying or industrial espionage than the typical guesstimator crowd, blew it, too.
Apple Inc. earnings this week will confirm what most investors have finally accepted: The iPhone X didn’t live up to the hype.
And somehow it did anyway. Best selling iPhone since launch in November 2017, plus, accounting for 35-percent of all smartphone profits since then.
Simply put, beware of Apple headlines because almost all of them are dead wrong; proven so by math, not tea leaves. Or, is it teal eaves? Whatever.
More than any other company on planet earth, Apple knows how to make money, satisfy a growing and disparate customer base, and keep Wall Street happy (except for the headlines which say Wall Street is not happy; AAPL says otherwise), and investors plumped up with profits.
Now, about those aforementioned problems that Apple surely is addressing though we cannot see any real proof. Yet. First, Apple is a hardware company and the major products are flat– sales are not driving upwards 10-percent a year. Second, the newcomer, Watch is a hit but not of the Mac, iPad, iPhone, or Services variety. Third, Services could use a breakdown as to which components in the group is the revenue and profit drivers.
Finally, Apple has as much admitted the company has no idea what the next great thing will be, so it’s just giving money back to undeserving shareholders, or buying back AAPL at a premium (anything over $100 is a premium; what goes up, must come down).
From a monetary standpoint, Apple’s worst problem is not Apple. It’s critics who are critical without being insightful. From a strategic standpoint, Apple could use a few more hit products, and instead of dumping money back to shareholders, perhaps upgrade the Mac, iPad, AirPod, and other products in need of advancement, while helping Apple customers overcome their broken keyboard disease.