When someone, whether it’s us or some leading market analyst on CNBC, yammers on about a company’s value, one must always take in a few notes of salt. Following Steve Jobs’ death, Apple’s stock climbed through the roof to a peak of over $700 this past September, with many expecting it to hit $1,000. Of course, stocks will be stocks and much of that value was speculative. Now the price is coming right on back to Earth.
We talked about this. Unless Apple announced some explosive growth last quarter (the holiday), then they had a tough road ahead of them. At this point, the worst thing that Apple can do is reveal a new product line – a trick that CEO Tim Cook hasn’t done yet – and attribute it to Steve as one of his last projects. This will send the stock tumbling even further as we can all but confirm that the innovation left the building with Steve. I’m sure Cook is super happy, having been a supply chain manager for so long, tosimply improve product lines through cost reduction, but he’s made some errors aside from those that are just as telling, for example: setting John Browett as their retail president, who then worked diligently to cut costs by removing far too many corners and slashing worker hours. (Browett’s successor, who assumed the position in October, left in January.)
Tim’s gonna need some magic soon if he wants to maintain his crown as iKing.
Source: Business Insider