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What's going on over at Apple?

Discussion in 'Serious' started by Snips, 29 Oct 2013.

  1. Snips

    Snips I can do dat, giz a job

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    http://www.bbc.co.uk/news/business-24719728

    What's going on over at Apple?

    With HUGE cash reserves, products clearly flying out by the bucket load and with such a trusted and highly valued brand name.

    So what's your thoughts on declining profits and share price down 13% from this time last year?

    Is it just as simple as not having that "Steve Jobs" guidance and leadership?

    Have they cheapened themselves by releasing the "mini iPad" and the cheaper iPhone5C?

    Is it just an industry thing and they are all in the same boat?

    Is Samsung/Google doing what Apple used to do and releasing innovative products?

    The only thing I can say from a personal point of view is that I didn't feel the fanfare, worldly excitement for the latest releases.

    Are the Apples starting to rot?
     
  2. Archtronics

    Archtronics Well-Known Member

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    Just more competition from other manufacturers, when Apple started there wasn't many other devices offering what they did now that all do it.
     
  3. Corky42

    Corky42 Where's walle?

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    One thing i never understand is why lack of year on year growth is seen as a terrible thing, i mean i get making more sales than before is a good thing but why is making less sales a bad thing if your still making a profit why does it have to be more profit than before ?

    Do company's really expect for year on year growth to carry on forever, doesn't there come a time that you reach market saturation or any other number of things effect sales.
    If i made £10 profit from selling something should i not bother selling it tomorrow if i didn't make £20 profit, or should i just be happy im making £10 profit everyday ?
     
  4. wyx087

    wyx087 Homeworld 3 is happening!!

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    Yes.

    I believe they should have never released those products. Apple has always been a company that doesn't care what the competition did, they've always been the one that offered quality product at premium price.

    Without Jobs, it's hard to say where Apple is heading. So far, it seems to be heading to be just-another tech company. Not brave enough to innovate, only following market trend.
     
  5. Nexxo

    Nexxo * Prefab Sprout – The King of Rock 'n' Roll

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    Let's look at the opening statement of the article: Apple has reported a fourth quarter profit of $7.5bn (£4.6bn) that beat analysts' expectations and iPhone sales surged 26% to 33.8 million. It made a net profit of $37bn. That's a first earnings decline in 11 years I could live with.

    I think that Tim Cook made some decisions that I suspect Steve Jobs wouldn't have (iPhone 5C; too many different versions of the iPad; iOS7 graphical overhaul). But in the end it is really difficult to improve on already darn near perfect devices (including the iPad Mini). And there are more competitors in the market which are gradually getting a grip and doing better.

    However I really wouldn't worry about Apple.
     
  6. wolfticket

    wolfticket Downwind from the bloodhounds

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    Apple is broadly speaking doing fine. That is the bottom line, and is shown buy their bottom line.

    However, Android's massive growth and especially it's dominance of the entry level is potentially hurting their longer term prospects.
    There is also a sense that they are changing their underlining philosophy in order to fight this threat. Some see this as a failure that will ultimately mean Apple fade into the crowd, yet to some the failure is not moving far enough to combat the threat. The 5C to a lot of people feels like a budget iPhone, but it's not priced like one.

    Apple previously dominated the smartphone market, which of course raises expectations, but I think less and less people are realistically expecting them to return to that position.
     
  7. liratheal

    liratheal Sharing is Caring

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    As above. They're not as alone any more, and they're not the only name people know when it comes to smart phones.

    The cynic in me would have to say, though, I think that they seem to be losing a bit of their elitist, snobby, edge over the other companies and seem to be trying to pander to what the consumers 'want'.

    Stupid colours, cheaper versions of things etcetera. I get the impression that it was Jobs holding all that crap off, and keeping them on the knife edge of refined and somewhat accessible snobbery.
     
  8. Cei

    Cei pew pew pew

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    I think people are making sense. Apple are dealing with increased competition in the market from Android and Windows Phone/Surface, and the fact they can still turn billions in profit is a sign of how well run the company really is.

    Sure, if Steve Jobs was around things might be slightly different, but I think Apple's overall 'plan' was established when he died - namely the progression towards thinner laptops, retina type screens and universal SSDs.

    Apple have also had to deal with their popularity. They used to be a niche manufacturer of high end computers, and seeing another Mac out and about usually earned a knowing nod. These days, Macs are everywhere, and so are the iOS devices. This means they're trying to grapple with mass market popularity and trends (colours! flat interfaces!), whereas before they were able to dictate to their users and stick closely to the Apple 'brand'.

    I also wouldn't worry about them. They have pile of cash, generate even more piles of cash every quarter, and still produce products people want. Sure, they may not have had a 'breakthrough' product recently, but then they only ever turned those out every now and then anyway. I still expect their foray in to smartwatches to be the one to watch (hurrr, I made a funny).
     
  9. rollo

    rollo Well-Known Member

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    Apples share price is crazy and goes up and down like a yoyo. They were also never worth $700 a share and those that sold at that level were laughing to the bank.

    7bil profit is still 7bil profit in the end of the day.

    If i was making 7bil a quater or 28bil a year dout id be worried at all.

    iphone 4s is the budget iphone acording to apple
     
  10. mucgoo

    mucgoo Well-Known Member

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    It was expected for a while. If you go and look at Apples stock its down 0.5%. This time lasted year they were priced at a PE (total company value/profits) of about 13. In comparison the average US company trade on a PE of 18. Broadly speaking if the PE of a company is below the average it means below average profit growth is expected. Facebook is on a PE of 180 and amazons on a PE of 1280 for the example of extreme growth expectations.

    The fact its expected doesn't stop it being bad news.
     
  11. KidMod-Southpaw

    KidMod-Southpaw Super Spamming Saiyan

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    Maybe some people are realising they can get the same functionality from different devices for less cash? That's not going to stop each Apple product selling by the bucket load anytime soon, but it is change.

    Either way, 7 billion is still a fair chunk of change!
     
  12. RedFlames

    RedFlames ...is not a Belgian football team

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    They're building a spaceship...
     
  13. KidMod-Southpaw

    KidMod-Southpaw Super Spamming Saiyan

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    I think you're mistaking them for another famous multinational enterprise ruled by eccentric fellows. ;)
     
  14. RedFlames

    RedFlames ...is not a Belgian football team

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  15. KidMod-Southpaw

    KidMod-Southpaw Super Spamming Saiyan

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  16. Pete J

    Pete J Working from home?

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    Exactly. They still made £4.6 BILLION. Not that I can be bothered to look up stats but I'm sure that's better than any government right now.
     
  17. d_stilgar

    d_stilgar Old School Modder

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    The issues are these:

    They created new markets with the iPod, then the iPhone, then the iPad.

    Apple then captured as much of those markets as they could. The markets are saturated. So, unless Apple releases a new product that creates a new market, they're going to plateau and stay where they are or go into decline. There's really nothing else.

    In business there's really only two things you can do, sell what you already make to new customers, or sell something new to your existing customers. Apple isn't going to get any new customers (at least not statistically significant) and the best they have as far as 'new' items for existing customers is to sell a new version of the same product over and over again each year.
     
  18. KidMod-Southpaw

    KidMod-Southpaw Super Spamming Saiyan

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    The Android phone and tablet market are saturated beyond belief. Just look at the range of Galaxy models, which most not even having a real place in the product line up. Both of these phone and tablet choices are far cheaper than the Apple offerings, respectively.

    So, when the average Joe walks in to a consumer electronics store or supermarket, it's less likely there's going to be an Ipad in front of them, rather an other brand tablet marked down a few pictures of the queen. Just look at the latest Asda advert. I guarantee the Galaxy Tab is going to sell quite a few simply because it's less than £100 now. People have to care more about that now than the fruit on the back.
     
  19. WarrenJ

    WarrenJ Well-Known Member

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    I seen a new attitude towards iPhones now. Everyone i know who was an apple fanboy have now moved over to Android. They're keeping their old iPods for the music but that's about it. I do however see a lot of iPad users at work, though it's not their latest stuff, its the old iPads that do what they want, surf the web. They're not bothered bout it doing much else so no need to change.
     
  20. rollo

    rollo Well-Known Member

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    Apples huge following means they will never struggle for customers.

    The tablet stuff is the sorta market that it is, People buy one to see what it does then relise they dont really need it, Mine is collecting dust.
     

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