Technology Hardware & Equipment
See also Electronics Equipment & Components for similar companies
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AAPL $183
28 Feb 2024 |
Tim Cook is no Steve Jobs, but something needs to happen soon
Not that long ago, we were self-proclaimed "Apple cores"—we built our technology infrastructure around the company's (AAPL $183) products, from iPhones to MacBook Pros, iPads to wearables. That is still mostly the case, but our commitment just isn't the same. We once again include PCs in the mix, because there are some things you simply cannot do as efficiently on a Mac (Excel, for example). Before he died in 2011, Apple's brilliant founder, Steve Jobs, proclaimed to have "cracked the code" with respect to the TV. Had he lived, we have no doubt that the company would have created something amazing in this arena. We recently threw one of our Apple remotes and its accompanying device in the trash out of frustration, purchasing a new Roku device in its place. Mainly to assist with sleep, we recently purchased an Oura ring. A few days later we read that Apple was thinking about developing a ring tied to Apple Health, but it was still on the drawing board. The company recently lost a court battle to Massimo, forcing it to shut down the blood oxygen feature on its Apple Watch. We also purchased advanced Google Nest smoke and CO2 detectors and love them. Apple HomeKit, which is apparently now part of Apple Home, feels like an afterthought. Now comes the news that, after a decade of secretive research, the Apple car is dead. Steve Jobs would clean house. Apple's car project was a moonshot expected to generate billions of dollars for the firm in the not-too-distant future. Now, the "ultimate mobile device" sits in a scrap heap, with the firm telling some 2,000 project workers that their mission is over. Instead, the next massive project will be built around the future of AI. There's only one problem: the company has to play a serious game of catch up against rivals like Microsoft and Google. But how will that manifest? We don't see new AI products generating long lines in front of Apple stores like we saw for the first iPhones back in 2007. Will the focus be on putting the technology to work in the $3,500 Vision Pro? Whatever the answer, it won't manifest soon. Furthermore, we are not convinced Tim Cook really has an answer which he is committed to. We miss Steve Jobs' passion. Apple is still the second-largest company in the world—behind Microsoft, but it needs to crystallize its vision. After watching a once-great American company like Boeing flounder under weak leadership, we don't want to see this happen at Apple. The company has been in the Penn Global Leaders Club for a long time, and we sit on massive long-term unrealized gains, but the same could have been said for Boeing right before we broomed the company—after two consecutive 737 crashes and a completely inept response. |
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AAPL $152
09 Mar 2023 |
Exit, stage left: Apple is expediting its move out of China and into India
India just surpassed China as the world’s most populous nation, with 1.412 million citizens, but size is just a minor factor in Apple’s (AAPL $152) hurried exodus out of the communist nation and into the South Asian country. The world’s largest publicly traded company ($2.4 trillion as of this writing) had a rare contraction in sales of 5.5% in the last quarter of 2022 as compared to the prior year, but it posted record revenues in India. Couple that with China’s growing ties to Russia, a continuing Covid nightmare in the country, and saber-rattling against the West (especially the US), and it makes sense that Apple would be packing up, so to speak, and heading west. And where Apple goes, its suppliers are sure to follow. Key suppliers to the Cupertino-based firm are increasingly being asked one question by their corporate customers: “When can you move out (of China)?” An executive at GoerTek, an AirPods manufacturer, said that 90% of his American tech firm clients are asking that question on a near-constant basis, and the pressure is growing. While Vietnam has been a major destination for many of these firms, India has been building momentum. For the first time ever, Apple has designated India as its own region, as opposed to simply being part of a larger geographic area including Middle Eastern, Eastern European, and African nations. Somewhat surprisingly, Apple still doesn’t have a physical footprint in India via retail outlets, but that will change beginning later this year. Apple recently created an online store dedicated to serving its Indian customers. In addition to reading the writing on the wall with respect to increasingly strained US-China relations, Apple has faced tumult at its Chinese facilities recently. Late last year, at its massive Foxconn plant in Zhengzhou, violent protests broke out as workers rioted against low pay and Covid restrictions. Up to 85% of iPhone Pros had been produced at that facility. It appears as though Apple is finally getting the message.Why did it take so long for American companies to wake up to the risks of concentrating operations in a state-controlled country? Quite simply, they were chasing profits and ignoring the obvious threats. A little over a generation ago, Americans could flip over common retail goods and read the “Made in Japan” label. Overwhelmingly, those labels now read “Made in China.” It will take some time to change that, but the exodus has begun—and we don’t see anything on the horizon that will derail the movement. |
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AAPL $183
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The first US company to hit $1 trillion in size just notched another milestone: it tripled that figure
(03 Jan 2022) It is nothing short of stunning. Just over three years ago, in August of 2018, Apple (AAPL $183) became the first US company with a market cap in excess of $1 trillion. We recall chuckling a few months later as the "experts" were decrying the company's lack of new products, accusing Tim Cook of trying to hide bad news by ending the release of unit sales figures for Apple's top three devices. After ushering in a wonderful new buy point, the negative chatter soon dampened. Three years and five months later, on the first trading day of the new year, Apple became the world's first $3 trillion company. To put that in perspective, Apple is now 50% bigger than Saudi Aramco, the former most valuable company in the world. Suddenly, the company is receiving a slew of new price upgrades from analysts. And rightfully so: Apple's fiscal Q4 revenue, which measured sales between August and September, hit $83.4 billion, a 29% increase from the same quarter a year prior. Every single sales category, from individual products to services revenue, rose substantially. We expect the fiscal Q1 numbers to provide yet another catalyst for the shares. Apple is a longtime holding within the Penn Global Leaders Club, and we have added to our position several times. We remain bullish for a number of reasons, one of which few have even considered: Apple is about to enter the world of the metaverse. Look for a VR/AR headset to hit the market sometime this year from the company, and expect it to be sleeker than Meta's Oculus Quest 2 device. Even with its 47 multiple, we would continue to accumulate Apple shares. |
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AAPL
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Apple vows to invest $430 billion and hire 20,000 new workers in the US over the next five years
(27 Apr 2021) Claiming that the company blew past its 2018 promise to invest $350 billion in the US, Apple's (AAPL $135) Tim Cook just announced bold new plans that would have the Cupertino-based firm adding another 20,000 US workers to the rolls (a 21% increase) and investing $430 billion in projects around the country. One of those projects will be a brand new campus and engineering hub in North Carolina which will create at least 3,000 AI, machine learning, software engineering, and other technical positions. Recall that the company just spent $1 billion on a new campus in Austin, Texas, which will be move-in ready next year. The new expenditures will focus on American suppliers, data center growth and enhancements, and Apple TV productions. Cook also added some very interesting comments following the investment announcements: he said that Apple was the largest taxpayer in the US, having paid over $45 billion in corporate income taxes over the past five years. That was a not-so-subtle message to D.C. that the big growth engines of the country—the large companies which each employ tens of thousands of American workers—are paying their fair share. We would like to add to the inference: the small- and medium-sized American companies which employ 65% of the US workforce are also paying their fair share. Apple remains one of our strongest conviction stocks within the Penn Global Leaders Club. When a short seller or analyst comes along and attempts to besmirch the bright future of this company, investors should be prepared to pounce on any negative reaction within the share price. |
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AAPL
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Apple breaks ground on its stunning new Austin campus. (20 Nov 2019) It will cost $1 billion to build, cover 133 acres, and be home to 5,000 employees—with the capacity to house another 10,000. It is the stunning new Austin campus of Apple, Inc (AAPL $142-$265-$268), set to be completed in 2022. The company broke ground on the new facility this week, with CEO Tim Cook and President Donald Trump in attendance. For all the promises made by US companies to bring manufacturing back to the US, Apple is clearly delivering, and this new facility is $1 billion worth of proof. While the company plans to build its new high-end Mac Pro, starting price $6,000, at the facility, workers are already constructing the machines at a nearby Austin location, with deliveries to customers expected to begin next month. In addition to its new Austin behemoth, Apple said it is also expanding facilities in Boulder, Culver City, New York, Pittsburgh, San Diego, and Seattle. We think back to all of the shade being thrown Apple's way this past summer and chuckle. If there is one stock in the world to own right now, it is AAPL.
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XRX
HPQ |
Xerox wants to buy HP—a company three times its size. (11 Nov 2019) Talk about audacity. Xerox (XRX $19-$39-$39), the company that brings to mind a copy machine from the 1970s, wants to buy the company formerly known as Hewlett Packard (HPQ $16-$20-$25), a name synonymous with a 1970s personal computer. Several thoughts immediately come to mind, but let's start with the obvious: Xerox has a market cap of $8 billion, while its target has a market cap of roughly $30 billion. If our math is correct, that would mean taking on debt equal to over three times the size of the company. Some analysts have speculated that this is Xerox's way to get HP's attention and initiate a reverse-takeover. Whatever the rationale, could two flailing printer and copier businesses really come to each other's rescue? Doubtful. Xerox may feel the need to take bold action after it ended its partnership with Fujifilm, meaning it no longer has an Asian distribution conduit. HP, which couldn't make a quality PC to save its life (based on our own experiences), is banking on the future of 3-D printing. Gee, no competition there. What about revenues? In 2010, Xerox had sales of $21 billion; last year it had sales of $9.5 billion. For its part, HP Inc had sales of $125 billion in 2010, versus sales of $58 billion last year. We are trying to find one word to describe a marriage between Xerox and HP Inc, but cannot find a specific antonym to the word "synergy." Anyone holding either XRX or HPQ in their portfolios should take the recent run-up in price as an excuse to exit the position(s).
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AAPL
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We are happy to admit being wrong about iPhone 11 demand. (07 Oct 2019) We own electronics device maker and services juggernaut Apple (AAPL $142-$228-$228) as position #18 (of 40) within the Penn Global Leaders Club. We have been, and remain, bullish on the $1 trillion firm's outlook. That being said, we didn't expect much from the company's launch of the iPhone 11, arguing that most users would hold off until a 5G-compatible device is released (probably) in the fall of 2020. What we didn't see happening was the company telling its massive supply chain to be prepared for an increase in production of the iPhone 11 by as much as 10%. We also didn't see the phone's new camera as being a catalyst for sales, but it is apparently that good. The phone's battery life, which has been a chronic source of past complaints, has also been greatly extended in the new model, and the $699 price tag comes in $50 below the iPhone XR—the tenth-anniversary model that was met with a muted consumer response. Investors have welcomed news of the increased demand, driving Apple shares to a new high, and putting the firm back in the trillion-dollar club. We have expressed our concerns about Tim Cook relying too much on services revenue at the expense of hardware innovations. The iPhone 11 is sort of proving us wrong on that count as well. Now, let's see how well Apple can master the exciting world of 5G.
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AAPL
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If you own an iPhone, you may not want to upgrade until next year. (29 Jul 2019) A few months ago, we posited a theory that Apple (AAPL $142-$210-$233) shares would take a strong upward tick in 2020 thanks to one amazing new technology: 5G. We mentioned that, unbeknownst to many, the current smartphones on the market—outside of a Samsung (SSNGY) model or two—do not support the technology, and that everyone will be clamoring for 5G once they get a glimpse of it. Apple apparently feels the same way, at least according to one major Apple analyst. Based on a story in MacRumors, all iPhone models which Apple will introduce in 2020 will be 5G-capable, thus signaling the beginning of the end for 4G's run—at least that is the speculation of TF Securities analyst Ming-Chi Kuo. We agree with his analysis. Apple knows it cannot allow foreign competitors like Samsung to get a leg-up on this critical new technology, which is one reason the company recently agreed to to buy Intel's modem division (think 5G technology) for $1 billion. We will play this theory out a step further: expect soft iPhone sales this fall as more and more Apple users (like us) decide to wait until the 5G-capable phones hit the market. This will scare some analysts, and may lead to a great buying opportunity in Apple shares in September or October. We already own the company in the Penn Global Leaders Club, but this fall may end up being a great time for newcomers to jump in. We remain concerned about Tim Cook's lack of apparent commitment (in our opinion) to new hardware, despite the 5G iPhone rollout coming next year. The company needs a new Jony Ive or, dare we say, Steve Jobs-like figure to enter the scene to develop the next generation of incredible Apple hardware.
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AAPL
QCOM INTC |
A new twist in the Apple/Qualcomm 5G saga: Apple is buying Intel's modem division for $1 billion. (23 Jul 2019) This past April we reported on Intel's (INTC $42-$51-$60) surprise announcement that it was abandoning its 5G platform, leaving rival Qualcomm (QCOM) in the driver's seat. This was almost certainly a catalyst for Apple's dropping of its suit against Qualcomm. This was also, in fact, one of the reasons we added Qualcomm to the Penn New Frontier Fund. Now, in another stunning development, Apple has announced that it will buy Intel's 5G modem division for around $1 billion. For Apple, which is sitting on well over $100 billion in cash, this was a smart move. With the purchase, it will acquire the patents and the talent needed to bring this critical component to 5G in-house. They will almost certainly still rely on Qualcomm for the needed wireless chip hardware, but this acquisition makes them much less vulnerable to supply chain disruptions, or the type of "extortionary fees" that were at the heart of Apple's case against the device maker. As could be expected, Apple and Intel rose on the news, while Qualcomm shares fell about 3%. We still like our QCOM position, and feel better about our AAPL position in the Global Leaders Club.
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AAPL
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Dear Apple, without killer new hardware, we have little need for your services. (01 Jul 2019) In a November, 2018 issue of The Penn Wealth Report, after Apple (AAPL $142-$201-$233) shares had dropped 25% in price—to $177, we gave a full-throated defense of the company. While our thesis has played out and the shares have moved back above the $200 mark, the announcement that Jony Ive is leaving the firm gives us pause. Even more troubling than the departure of Steve Jobs' kindred spirit (Tim Cook could certainly not claim that moniker), we now learn that Ive essentially checked out years ago. Based on stories from The Wall Street Journal and tech industry publications, Ive has apparently been upset with Apple's focus—under Cook—on services, at the expense of new hardware. We have certainly sensed that shift; most recently with the failed attempt to create an effective device charging pad and the company's mediocre attempt to enter the home automation space with the Apple HomePod (yawn). Not long before Steve Jobs died, he proclaimed that he had cracked the TV code. Something tells us that what he envisioned was certainly not the underwhelming Apple TV of today. If Jony Ive did mentally check out from Apple years ago, that would explain the company's recent lack of exciting new products. What concerns us the most, however, is the fact that Tim Cook doesn't seem to get it: without killer new products, we will soon have little need for your services. A Steve Jobs, or a Jony Ive at his prime, certainly doesn't come around every day, but Apple had better begin searching for that old magic. If not, they might as well bring back the hapless John Sculley—who is only remembered for the fact that he fired Steve Jobs.
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AAPL
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Apple surges after a big earnings beat. (30 Apr 2019) What a crazy ride. Going into the year, Penn Global Leaders Club member Apple (AAPL $142-$212-$233) had been quite unfairly—in our opinion—beaten down. The first company to ever reach the coveted $1 trillion market cap was suddenly worth a mere $672 billion during the first week of January. While we didn't hit the exact bottom, we did add to our position when shares were sitting at $164.35—the company itself bought back billions of dollars in shares at $167. Suddenly, Apple has gained 45% since that January low, and is now just about $1.50 per share from regaining the $1 trillion mark. The latest catalyst, which pushed the stock 5% higher (to $212/share) was the Q2 earnings report. In addition to beating both on top-line revenues and bottom-line profit, CEO Tim Cook said that the company would spend another $75 billion on share repurchases. It can afford it: though down 8%, its cash bucket now sits at $225.4 billion. Even more astounding, the company is still sitting on a pile of cash $113 billion higher than net cash neutral (per Tim Cook, this can be defined as "having an equal amount of cash and debt...that balances to zero"). After announcing its $58 billion in revenues for Q2, the company guided higher for the third quarter, which thrilled investors. While everyone is now focusing on the faster-growing services business, we still believe that the company's hardware lines have some pleasant surprises coming down the pike. If nothing else, remember this: the 5G evolution will force everyone to buy a next generation smartphone. Few understand just how seismic that shift will be.
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Samsung
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CNBC test drives the Samsung Galaxy Fold...and it breaks after two days. (17 Apr 2019) Sure, a foldable smartphone sounds pretty cool on its face. You can use it like a regular phone, then fold it open to use more like a tablet, viewing your photos—for example—on a double-sized screen. Samsung must think highly of their new device—they want you to shell out nearly $2,000 for it. There's only one problem with the phone, however: it appears to be prone to breaking, like nearly instantly. Tech writers at CNBC got their hands on one of the devices, and it stopped working correctly after two days. Specifically, the hinges that allow the device to swing open can act up, causing bulges, distortions, and outright failures on the screen. About the only comment Samsung has had thus far is to say that users are not supposed to remove the protective screen. CNBC didn't. The phone is due to launch on the 26th of April, and the company is currently taking pre-orders. It may want to rethink that launch date. This reminds us a lot of the exploding Galaxy 7s of just over two years ago. Is beating Apple to the market really worth the damage to a company's reputation when a faulty product is released? Not that we are dogging Samsung in general—our Samsung television seems to be the one piece of electronics in the house that hasn't met with an early demise thanks to poor craftsmanship (like our GE washer, LG fridge, Sony TV, Chinese-made sump pump with an American name, and HVAC motor made who knows where).
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HPQ
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We never bought into the HP turnaround story; now the evidence is backing up our opinion. A lot of analysts have been bullish on "old tech" name HP Inc (HPQ $19-$20-$27), half of the old Hewlett-Packard that was split in two by lackluster former CEO Meg Whitman (let's split one mediocre company into two parts and see what happens). The HPQ side dealt with the hardware one thinks of with HP (printers, ink supplies, personal computers), while HPE—HP Enterprises—handles the IT services side of the business. HPQ just released their quarterly earnings report, and the numbers backed up our misgivings. Shares fell 17% after the company gave poor guidance for the printer supply business throughout 2019, specifically calling out weaker-than-expected demand in Europe, Africa, and the Middle East. Both revenues and earnings missed expectations. Ink, copiers, and ubiquitous personal computers. Why would someone want to take the helm at the company, and who still believes they have a grand turnaround strategy in the works? We often say that a great leader can create a turnaround story within virtually any industry. HPQ may challenge that notion. Stay away.
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AAPL
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Apple jumps 6% after a "not disastrous" quarter. (30 Jan 2019) After a good six months of near-constant bashing by analysts, the bar wasn't set very high for Apple (AAPL $142-$162-$233) heading into its Q4 earnings report. Nonetheless, the Street was bracing for the worst. Fears were allayed when the numbers and guidance came out, however, and the stock jumped 6% by the start of Wednesday's session. This was the first quarter manifesting the "no more unit sales numbers" announcement that rattled investors late last year, which meant the company's pay-for-services business was clearly in focus—and those numbers were strong. On $84.3 billion in sales over the quarter (down 4.5% Y/Y), Apple earned $4.18 in earnings per share. While revenue from iPhone sales fell 15% Y/Y, sales in the lucrative and growing services category (think Apple Music, iCloud storage, etc.) rose 19%. Of the $84.3 billion of total revenue, in fact, services broke above the $10 billion mark for the first time ever. Services are great; they provide a reliable stream of constant revenue with higher gross profit margins than the products side (63% versus 34% for products), but the services revenue will not continue to grow without the products which are at the core of Apple's ecosystem. For the first time, we are truly beginning to question the leadership (as opposed to management) abilities of Tim Cook. If he doesn't have some revolutionary—or at least highly evolutionary—products up his sleeve, the company could begin to stagnate. It is safe to say that he is not a Steve Jobs, an Elon Musk, or a Jack Welch, but he had better pull a rabbit out of his hat at one of the upcoming Apple events.
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MSFT
AAPL |
Who just caught up to Apple in size? (27 Nov 2018) When Apple (AAPL $150-$173-$233) became the first trillion-dollar company in history, it had a couple of tech giants in its rear view mirror; namely, Alphabet (GOOGL) and Amazon (AMZN). What few would have predicted is yet another company, stodgy old Microsoft (MSFT), being the one to catch the Cupertino-based iPhone maker. But that's just what happened: both Microsoft and Apple now have a market cap of $821 billion. Of course, Apple did the heavy lifting, falling nearly 25% within the past two months. We believe both companies are excellent buys at their respective share prices. And both continue to develop world-class services businesses which assure a steady stream of monthly income from users. We pay both each month, and it would be difficult to turn off either stream. In other words, they have created a "sticky" customer base.
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AAPL
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Company Review: Apple, Inc
(13 Nov 2018) After exiting the brutal tech selloff in October relatively unscathed, the Apple bears came out in November, pushing the share price down nearly 20%. Not only is now not the time to jump ship, it is time to accumulate more shares. (See article in The Penn Wealth Report by clicking button to right. Not a member? Join Here.) |
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AAPL
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Apple is a screaming "buy" after its current selloff. (12 Nov 2018) Remember when Apple (AAPL $150-$187-$233) was the one shining tech giant which seemed to be bucking the trend after the great October meltdown? It only took a week for the Cupertino-based company to join the party. The latest blow came when Lumentum Holdings (LITE $42-$38-$74), a $3 billion California-based optical and photonics (think photons in fiber optics) products maker, announced that a major supplier had "reduced its shipment request." That was read by Wall Street as "Apple," as LITE makes components which enable the iPhone's FaceID and augmented reality features (and Apple accounts for one-third of LITE's sales). While Lumentum shares really took it on the chin, falling by one-third in a matter of minutes, the speculation also drove Apple shares down below $190 for the first time since summer. By the end of the day, stories lamenting Apple's coming pain flooded the newswires. What should an astute investor make of this news? Ignore the chatter and own the stock. These analysts are grossly underestimating this company.
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AAPL
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Investors misread—and then overreact to—Apple's change in reporting plans
(02 Nov 2018) It wasn't good enough to beat on the top-line sales and bottom-line profit numbers. Instead, analysts helped drive Apple (AAPL $150-$206-$233) shares down 7% by fixating on the company's plans to stop reporting unit sales for its three biggest sellers. Here is why Apple got it right and the analysts got it wrong. (See article in The Penn Wealth Report by clicking button to right. Not a member? Join Here.) |
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Dell
VMWT VMW |
Is Dell really going public...again? (02 Jul 2018) You may want to crack a beer before trying to follow this story line. First they were private...then public...then private...now public again? C'mon Michael Dell, make up your mind. Actually, it is not that cut-and-dry this time around for Dell. Anytime you hear the term "tracking stock," think financial engineering, think complex, think investor screwed, think lawyers making a lot of money. At least that has been our professional experience with these creatures (yes, we remember WorldCom's MCI tracking stock). In essence, it amounts to "how much can we get out of investors and how little control can we give them?" Anyway, back to Dell. The company went private in 2013 because (our opinion) Michael Dell was tired of DELL getting hammered after each bad earnings report. As a private entity, Dell bought EMC which, in turn, happened to own most of another company called VMWare (VMW). To fund the EMC purchase, Dell threw some cash in the pot along with a tracking stock called "Dell-VMWare Tracking Stock" (DVMT). Now, to avoid a messy and costly new IPO, Dell will pay nearly $22 billion to buy back shares tied to its interest in DVMT. According to Dell, this would value his company at somewhere between $60 billion and $70 billion (it was valued at $25 billion when Dell and private equity firm Silver Lake took it private in 2013). Now that is some serious financial engineering! Here's a concept: make a PC that actually works and that people want to buy (ours quit after a year).
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AAPL
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All of a sudden, Apple is sitting within striking distance of $1 trillion
(07 May 2018) Remember a few months ago when everyone was sour on Apple (AAPL 142-$186-$188), disparaging the iPhone X and the company's supposed dearth of new and exciting products? Like lemmings, the financial press and their guest analysts began feeding off of each other's negativity, until everyone in the group-think-tank was convinced that the company was in trouble. That was roughly the time (02 Feb 18 @ $164.21) we were busy adding shares of AAPL to the Penn Global Leaders Club. My, how a few months of a stock rally can quiet the critics. They won't mention what they were saying back then, but we remember. Now, all of a sudden, Apple is within 10% of doing something no other company has ever done: reaching $1 trillion in market capitalization. Where are the nearest competitors? Amazon (AMZN), who we were assured would be the first to hit that mark, is sitting at a $777B cap, Microsoft (MSFT) at $740B, and Alphabet (GOOG) at $735B. This is a golden example of what we mean when we say that astute investors can create wealth by reading through the false or misinformed narratives being shoveled out by the press corps. Here's to Apple's next 10%. |
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AAPL
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Apple posts strong quarter, authorizes $100 billion of stock repurchases
(02 May 2018) Just about any way you slice it, Apple (AAPL $142--$169—184) had a great quarter—befuddling many naysayers. The company's Q2 revenues rose 16% year-over-year, to $61.1 billion, and earnings were up 30% from the same quarter last year. Some of the strongest areas included the firm's services business (up 31%); the "other" category, which includes the Apple Watch and headphones (up 38%), and sales in China and Japan (up 21% and 22%, respectively). The company rewarded investors by pumping up the stock's dividend by 16%—to $0.73 per share—and authorizing a $100 billion stock buyback program. For those who don't already own the stock, $169 seems like a great entry point to us. |
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AAPL
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With new iPhone upgrade, Apple takes on battery health issue at the center of recent storm
(09 Apr 2018) Remember the iPhone "throttling" issue Apple (AAPL $140-$170-$184) faced last year? To recap: the company admitted it was purposefully slowing down older iPhones via new software updates. Apple claimed this action was taken to maintain the integrity of older phones as they tried to handle the increasingly intense multitasking required for advanced new apps and features. A small group of angry iPhone users saw it as a clear method for browbeating owners into an expensive new model upgrade. Roughly 60 individual lawsuits are pending over the issue, and Congress has called on Apple to explain. With the latest software update—iOS 11.3—which rolled out last week, the company is once again addressing the issue. iPhone users can go to the Settings feature, select "Battery," and they will find a new beta called Battery Health. Here, users will see a Maximum Capacity number which will tell them the overall health of their battery, measured in percentages. I checked my iPhone 7, and the number read 89%. Below this reading, you will also see an annotation as to whether or not your phone's battery is supporting normal performance, or if you need to schedule an appointment at your nearest Apple store. If you do need a new battery, Apple will be discounting the normal $79 price to $29 through the end of 2018. Something tells us this won't bring an end to any of the five dozen pending lawsuits. Whatever happened to torte reform? |
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AAPL
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Apple just telegraphed its major product upgrade for 2019
(05 Apr 2018) Remember the Mac Pro? Not the Macbook Pro, but the Mac Pro. Most people don't. You may recall the commercials a few years ago showing a cool, sleek, jet black cylinder that was "built for creativity on an epic scale." This ultra-powerful device, with its starting price of $3k (but if are truly serious, you will spend a cool $10k), was designed for the industrial-strength professional, be that person a graphic artist, engineer, or medical imaging specialist. There really haven't been many improvements to the Pro over the past few years, but Apple (AAPL $140-$173-$184) is signaling—according to TechCrunch—that a major overhaul is coming to the device next year. High-level professionals have felt left out from recent Apple upgrade cycles, and this effort represents a major push to woo them back. In fact, the company solicited major feedback from Pro users for this redesign. After a year of less-than-stellar announcements, the push back into education on one end of the spectrum, and power users on the other, should portend a dynamic year ahead for the Cupertino-based tech company. AAPL is a member of the Penn Global Leaders Club. |
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AAPL
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Look out Google Chromebook, Apple wants its niche market back
(27 Mar 2018) Taking its Apple Event show on the road, the tech giant introduced a new line of education equipment and software Tuesday morning in Chicago, all designed to take back its classroom market share it lost to Google. Apple (AAPL $140-$170-$184) unveiled a new budget iPad for students, with a 9.7" screen and a $299 price tag, to directly compete with the popular Chromebook. The tablet supports the Apple Pencil and will include a set of teacher- and student-friendly education apps. "Schoolwork" will help teachers send out e-assignments and monitor progress. ClassKit is a new service which will allow developers to write new programs to work with the Schoolwork app. These tools will also be available (this summer) for the Mac line of computers. And just "one more thing"—the company also announced a new curriculum called "Everyone Can Create" designed to assist teachers with the arts; specifically music, photography, and video. |
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AAPL
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With screen development, Apple is truly reaching vertical integration
(20 Mar 2018) One of the major challenges for mega-companies like Apple (AAPL $139-$175-$184) is the growing reliance on suppliers. The bigger a company gets, the more third-party moving parts to go wrong. Let's face it, if an Apple supplier problem causes a product delay, it will be Apple that gets the black eye by consumers—not a company nobody's ever heard of based in a city whose name they cannot pronounce. The Cupertino-based firm has slowly been vertically integrating their products, from making more components to owning the product/consumer experience. Now, it appears that Apple is ready to develop its own ultra-advanced screens, which is bad news for screen suppliers such as arch-rival Samsung. News of the new "MicroLED" screen development hit supplier stocks hard, with many down double-digits. |
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AAPL
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Apple may be planning big push into the high-end headphone market
(05 Mar 2018) Look out Bose, Penn Global Leaders Club member Apple (AAPL $137-$177-$181) appears ready to make a big move into your territory. Based on the surprisingly robust sales of their AirPods (it surprised us—c'mon, white only?), the company is reportedly working on noise-canceling, over-the-ear headphones, probably to be priced at $399 or higher. The headphones would, of course, simply and wirelessly connect to your iPhone. Apple's "Other Products" segment generated over $5 billion in revenue for the latest quarter, with wearables showing a 70% gain from the same period last year. That segment has quietly become the company's fastest growing unit. |
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AAPL
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True to Apple form, the tech giant will start dealing directly with cobalt miners for the valuable metal
(21 Feb 2018) It takes 5-10 grams of cobalt to make one Apple iPhone. It takes 1 ounce (34+ grams) to make a laptop. For an electric vehicle, you need 10-20 pounds of the bluish-gray metal. As one could imagine, demand is skyrocketing, and many problems immediately spring to mind. For example, a whopping 60% of the world's cobalt supply is produced from the mines of the Democratic Republic of Congo (DRC). Apple found itself in a public relations brouhaha last year after an investigation uncovered harsh working conditions and child labor problems at some of the sourced mines in the region. Apple was, in essence, a victim of circumstance, as the company's third-party vendors were the ones actually buying the cobalt in question for the parts they make. Now, Apple is looking to buy the cobalt they need directly from miners around the globe. This is a great move; not only does it help the company secure the supply it needs, it also allows them to perform due diligence on the sourcing. |
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AAPL
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Apple in talks with Goldman Sachs for consumer financing of iPhone X
(08 Feb 2018) The minute we heard rumors of flagging iPhone X sales a couple of possible reasons immediately came to mind. First, why on earth would you announce the phone at the same Apple (AAPL $131-$160-$180) event that you announce the new iPhone 8? Was it really so important to put out the "10" on the phone's tenth anniversary? Second, when we heard that the phone could not be paid on installments like previous devices, we figured there would be some balkers. C'mon, credit and installment payments are (sadly) the American way! In an effort to fix the second challenge, Apple is in talk with Goldman Sachs (GS) to provide funding for consumers to buy the $1,000 device, along with other products like the Apple Watch and the iPad. The benefit, at least in theory, would be that consumers would get a lower rate on a Goldman Sachs loan than they would by simply charging the iPhone X on their credit card. |
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AAPL
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Any further pullback in Apple is a golden buying opportunity
(30 Jan 2018) Apple (AAPL $121-$165-$180) is one of those great American companies an investor could buy and hold in their portfolio for the long haul and still sleep soundly at night. The kind of company General Electric (GE) used to be. We conservatively place the current fair value of Apple at $200 per share, with years of room to grow. More than likely, it will be the first trillion dollar company (its market cap is $857 million right now). We point this out as the company finds itself in a mini-correction, down about 8% since mid-month. Critics have overblown concerns about iPhone X production cuts, a lackluster (and expensive) HomePod, and a supposed dearth in the pipeline, spooking investors. Don't buy any of it. Instead, if the company pulls back any more, consider picking up some Apple stock (assuming it fits in your portfolio allocation). |
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Long-awaited Apple HomePod is finally coming out, but it is already being trashed by the critics
(23 Jan 2018) Apple (AAPL $120-$177-$180) has had a rough couple of days. Following rumors that it will halt iPhone X production due to sluggish sales (not true), haters are now piling on the yet-to-be-released HomePod, the company's version of Amazon's (AMZN) Alexa. As for the device itself, customers can pre-order on Friday, with deliveries set for 09 Feb. Detractors point to the HomePod's hefty price tag ($349) and Alexa's dominance after another holiday season of record sales. But how many times have Apple critics been wrong in the past? Yes, they were late to this party, and we are still waiting for Steve Jobs' true vision for Apple TV to come along, but count us in the Bank of America (BAC) camp, which just raised its price target on the firm to $220. If that target is hit, Apple will have a market cap of $1.1 trillion. |
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Apple says it will contribute $350 billion to the US economy over the next five years
(17 Jan 2018) As a direct result of tax reform, tech giant Apple (AAPL $119-$178-$179) announced that it would repatriate the bulk of the $250 billion it has parked overseas, paying roughly $38 billion in taxes as a result. Furthermore, the company announced 20,000 new hires over the next five years, and a second US-based campus. Finally, Apple said it will invest over $30 billion in capital expenditures over the next five years, with most of that capital being deployed in the US. All-in-all, the company figures it will be adding $350 billion to the US economy with these changes. The world's largest company ($900 billion) was up around 1% after making the announcements. |
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STX
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Seagate Technology rises 7% on rumor it owns a part of cryptocurrency firm Ripple
(08 Jan 2018) Bitcoin may be down nearly 25% in the past month or so, but Cryptocurrency Madness still has a hold on millions of brains around the world. Take data storage maker Seagate Technology (STX $31-$46-$51). The company popped 7% after a little-known blogger reported that Seagate had taken a stake in Ripple, the private company behind the eponymous cryptocurrency ripple. ValueStreet Research claimed that STX may own 4% or more of Ripple, which could be worth nearly $8 billion (Seagate's market cap is just $13 billion). We don't care about this particular rumor, but now we are really kicking ourself for not buying Seagate last July when it was sitting at $32 per share (see stories below). |
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Seagate Technology jumps 13% in early trading on earnings beat
Data storage maker Seagate Technology PLC (STX $31-$39-$51) popped double-digits in early Monday trading after the Cupertino-based (but Dublin-incorporated) tech firm easily beat earnings estimates for its fiscal 1st quarter. STX increased its net income by 8% (to $181 million) over the same period in 2016, despite revenues edging down ever-so-slightly, to $2.6 billion on the quarter. Seagate shares, which were down 16.2% YTD on 8 September, have rebounded to a positive 3.2% for the year—still well shy of the market's performance overall, but on the right track. The company's P/E is 13.5, compared to an industry average of 38.9. Looks like we shouldn't have waited for the stock to go lower (see 25 Jul notes below). |
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China abruptly halts Apple Watch connectivity in the country
(19 Oct 2017) The most impressive aspect of the new Apple (AAPL $104-$156-$165) Watch, Series 3, is its ability to make phone calls and connect to the internet without the need to be tethered to another device, like a nearby iPhone. Unfortunately, Chinese purchasers of the new watch have seen an abrupt end to the device's connectivity. While the government is mum on the issue, it appears to be a matter of control—or lack thereof—for the communist country. For the iPhone, Chinese consumers had to purchase a separate SIM card from a specific network, registering it under their legal name. For the watch, however, the eSIM cards needed for connectivity are embedded into the phone by Apple, making the ability to track the device's owner much more difficult. As it has shown time and time again, China loves the idea of capitalism when it comes to raking in the dough, but the all-powerful government hates the concept of the personal freedoms that come along with the deal. Apple was down about 2.6% in mid-day Thursday trading. |
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BlackBerry up 17% midday on news it actually turned a profit
(28 Sep 2017) Before getting too excited about this story, let’s remember that cellphone maker BlackBerry (BBRY $7-$11-$12) raked in $20 billion of revenue in 2010…and just over $1 billion last year. Furthermore, the company has recorded a net loss every year since 2012. That being said, BlackBerry shares were up 17% at Thursday midday following a better-than-expected fiscal Q2 earnings report. The company earned a cool nickel, $0.05, for each share of outstanding stock. That was quite a bit better than the expected $0.00 analysts were looking for. The company also reported it had sealed a licensing deal with China’s Yangzhou New Telecom Science and Technology, a developer and maker of smartphones. An impressive jump in share price. Then again, it only took $1.50 to make the double-digit gain. Instead of buying BBRY, go to the boats and have a watered-down drink while you lose your money. |
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The Apple event: no shockers, but still some pretty cool new features
(13 Sep 2017) We’ve simply been spoiled by past Apple (AAPL $104-$160-$165) events which have unveiled revolutionary new products, like the iPhone, the iPad, and the Apple Watch. Those particular events set the bar very high for the company’s perennial product roll-outs, so when we don’t see something unexpected, we are a bit let down. At least this fall we got the visual treat of the above-ground portion of the Steve Jobs Theater, which sits in the middle of Apple’s new 176-acre headquarters. The $5 billion HQ is really something to behold. As for the several-hour event itself, there were certainly some pretty cool introductions. The feature that probably garnered the most attention was the new iPhone X (as in ten, as in tenth anniversary of the iPhone), along with its facial recognition technology. With an edge-to-edge screen, sans the home button, you simply hold the phone in front of your face and swipe up to unlock the device. The next-coolest thing was the new Apple Watch, Series 3. It truly has become the Dick Tracy watch of the classic sci-fi years. Forget the need to tether your nearby iPhone to make calls and access the Internet, as cellular is now built directly into the device. That really is a leap forward. Tim Cook made a call out to a paddle-boarding employee who had nothing with her but an oar and an Apple Watch (and a swimsuit). The call quality was excellent. Oh, and the 40 million or so songs you can download to your watch at any given time was a big hit with the crowd. Those were the only real “wow” moments during the presentation. Apple TV 4K was introduced, but we don’t consider that a huge leap forward. What did Wall Street think? Well, the stock didn’t plummet. |
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(10 Aug 2017) Consumer Reports can no longer recommend four Microsoft devices due to customer feedback.
Microsoft (MSFT $56-$72-$74) singlehandedly drove us into the arms of Apple. After years of frustrating gremlins in the Windows operating systems, we decided to give Apple's IOS a try...and never looked back. It seems Consumer Reports is starting to feel the same way. The highly-trusted ratings organization has yanked its recommendations for four Microsoft devices—two Surface laptops and two Surface Books (tablets)—after chronic complaints from customers. The consumer group said it could no longer recommend the devices because of poor reliability compared to other brands. |
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AAPL
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(02 Aug 2017) In the midst of rumors of iPhone 8 delays, Apple releases news of a blowout quarter
All we've heard in the news on Apple (AAPL $103-$150-$157) lately are concerns that the iPhone 8 will be delayed, and what impact those delays may have on the company's share price. Delays were the last thing on investors' minds after digesting Tuesday's blowout earnings figures. Apple shares spiked 5.5% in after-hours trading following the news that the tech giant sold $45.4 billion worth of goods in Q2, up 7% from last year's Q2. More importantly, the company threw cold water on the delay rumors, forecasting revenues of $49 and $52 billion for the fourth quarter—when the iPhone 8 is expected to be released. BMO Capital Markets raised their price target on Apple from $170-$180 per share. |
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STX
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(25 Jul 2017) Hard disk drive darling Seagate is getting a 20% haircut in early trading
Headquartered in Ireland, Seagate Technology (STX $30-$32-$51) is the world's second largest maker of hard disk drives (HDD). The $12 billion company is becoming a $10 billion company thanks to a 20% drubbing in Tuesday trading. Revenue came in at a 10% drop from Same Q last year, with EPS also missing estimates. Yes, it is near a 52-week low, but we would wait for it to get in the mid-$20s range before considering purchase. |
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(24 Feb 2017) Steve Jobs' baby, Apple Park, to open in April. What an incredibly fun place to work, right? 175 acres of nature enveloping what appears to be an enormous super-collider. This was completely and thoroughly a Steve Jobs creation. Apple's (AAPL $89-$135-$137) new HQ, dubbed "Apple Park," will open in Cupertino this April and will, when it is filled, house 12,000 Apple employees. To honor Jobs, who would have turned a young 62 today, the 1,000-seat on-campus auditorium has been named the Steve Jobs Theater.
Apple Park will include two miles of walking and running paths, an orchard, meadows, and a pond within the ring. With 17 megawatts of rooftop solar panels, Apple claims the site will be completely powered by renewable energy. The project might have cost a mint, but Apple is still the most cash-rich company in the world, sitting on $250 billion or so of reserve capital—93% of which is currently parked overseas due to the onerous US tax rate. |
HP to Buy Samsung’s Printer Division
HP (HPQ) has agreed to buy Samsung’s printer business for $1.05 billion, with the deal expected to close within twelve months, conditional upon regulatory approval. Based on our view of HP, this will spell the beginning of the end for another quality lineup, as the unit gets “dumbed down” to HP standards.
Why would HP, which generated $21 billion in revenue from its own printing unit last year, be interested in Samsung’s, which didn’t generate 1/10th that figure? The answer lies in Samsung’s patented technology.
Last year Hewlett-Packard’s lackluster CEO, Meg Whitman, led the drive to split the company into two parts: HP and Hewlett Packard Enterprises (HPE). While HP continues to sell (equally bad, in our opinion) PCs, it derives most of its profit from the sale of ink and toners for its printers. Unfortunately for the company, ink and toner revenue dropped nearly 20% this past quarter from the same quarter in 2015. Revenue from the sale of the printers themselves fell 10% over the same time-frame. The stepchild of the breakup (enterprises is doing fine) had to do something to goose sales. Enter Samsung.
Dion Weisler, HP’s chief executive (Whitman is a non-executive chairperson of HP, while still running HPE), knows that the real money is in selling big machines to big companies—not personal units to consumers. Samsung has a foothold in this area, which becomes HP’s foothold when the deal goes down.
In addition to the instant street cred, HP also wanted the Samsung technology that goes into the devices. The printer engines are the heart of any printing device; Samsung makes their own, while HP has been forced to buy the components from third-party vendors. Along with the deal comes roughly 6,500 printer-related patents, 1,500 engineers, and 6,000 Samsung employees.
So, should you buy HP? If not, what should you buy in the space? What can HP embrace to turn their ship around? Read the answers to these questions in this Sunday's Penn Wealth Report.
HP (HPQ) has agreed to buy Samsung’s printer business for $1.05 billion, with the deal expected to close within twelve months, conditional upon regulatory approval. Based on our view of HP, this will spell the beginning of the end for another quality lineup, as the unit gets “dumbed down” to HP standards.
Why would HP, which generated $21 billion in revenue from its own printing unit last year, be interested in Samsung’s, which didn’t generate 1/10th that figure? The answer lies in Samsung’s patented technology.
Last year Hewlett-Packard’s lackluster CEO, Meg Whitman, led the drive to split the company into two parts: HP and Hewlett Packard Enterprises (HPE). While HP continues to sell (equally bad, in our opinion) PCs, it derives most of its profit from the sale of ink and toners for its printers. Unfortunately for the company, ink and toner revenue dropped nearly 20% this past quarter from the same quarter in 2015. Revenue from the sale of the printers themselves fell 10% over the same time-frame. The stepchild of the breakup (enterprises is doing fine) had to do something to goose sales. Enter Samsung.
Dion Weisler, HP’s chief executive (Whitman is a non-executive chairperson of HP, while still running HPE), knows that the real money is in selling big machines to big companies—not personal units to consumers. Samsung has a foothold in this area, which becomes HP’s foothold when the deal goes down.
In addition to the instant street cred, HP also wanted the Samsung technology that goes into the devices. The printer engines are the heart of any printing device; Samsung makes their own, while HP has been forced to buy the components from third-party vendors. Along with the deal comes roughly 6,500 printer-related patents, 1,500 engineers, and 6,000 Samsung employees.
So, should you buy HP? If not, what should you buy in the space? What can HP embrace to turn their ship around? Read the answers to these questions in this Sunday's Penn Wealth Report.
Apple’s spring event was too much environment and politics and too little new fun stuff
(22 Mar 16) I must admit having tuned in to past Apple unveil events with rapt attention. The introduction of the new Apple Watch and the iPad Pro had me, and many other professional investors (and consumers) jazzed. That being said, the 2016 spring event was, quite frankly, boring.
I guess hard-core environmentalists might be titillated by Liam, the recycling robot that can salvage useful materials from an old iPhone in eleven seconds, but investors were underwhelmed. Maybe Cook is focusing all of his top team’s attention on coming up with new ways to encrypt data out of the hands of a bungling DOJ, but the new lineup didn’t do much for us either. Here are the highlights.
The newest version of the company’s flagship product, the iPhone, will have a 4-inch screen like the iPhone 5S, but the A9 chip and graphics processor will make it perform like the 6S (to include Apple Pay). The big excitement surrounding the phone was its price—$399 and up. Big whoop.
Next on the “smaller is the new big” list was the iPad Pro. A 9.7-inch model will be released to complement the existing 12-inch model. Essentially, think a souped-up version of the model you are probably already using. I am still trying to justify the original iPad Pro, so this one doesn’t do much for me. Apple appears to be going after the PC market to further erode the market share of Microsoft’s Windows operating system. Many people still use programs that were built for Windows and which refuse to fully cooperate with OS X, so Cook’s dream of consumers being totally immersed in Apple’s ecosystem is just that—a dream.
Minor tweaks to the Apple Watch were released, including a $50 reduction in price and new band choices. The company tried to tantalize users with the announcement of a full watch redesign this fall.
Down the road, we are most excited about the health care software developments. Unfortunately, there was less talk of tangible benefits and more talk of the environment and politics at the event. Yawn.
(Reprinted from the Journal of Wealth & Success, Vol. 4, Issue 3.)
(OK, got it. Take me back to the Penn Wealth Hub!)
(22 Mar 16) I must admit having tuned in to past Apple unveil events with rapt attention. The introduction of the new Apple Watch and the iPad Pro had me, and many other professional investors (and consumers) jazzed. That being said, the 2016 spring event was, quite frankly, boring.
I guess hard-core environmentalists might be titillated by Liam, the recycling robot that can salvage useful materials from an old iPhone in eleven seconds, but investors were underwhelmed. Maybe Cook is focusing all of his top team’s attention on coming up with new ways to encrypt data out of the hands of a bungling DOJ, but the new lineup didn’t do much for us either. Here are the highlights.
The newest version of the company’s flagship product, the iPhone, will have a 4-inch screen like the iPhone 5S, but the A9 chip and graphics processor will make it perform like the 6S (to include Apple Pay). The big excitement surrounding the phone was its price—$399 and up. Big whoop.
Next on the “smaller is the new big” list was the iPad Pro. A 9.7-inch model will be released to complement the existing 12-inch model. Essentially, think a souped-up version of the model you are probably already using. I am still trying to justify the original iPad Pro, so this one doesn’t do much for me. Apple appears to be going after the PC market to further erode the market share of Microsoft’s Windows operating system. Many people still use programs that were built for Windows and which refuse to fully cooperate with OS X, so Cook’s dream of consumers being totally immersed in Apple’s ecosystem is just that—a dream.
Minor tweaks to the Apple Watch were released, including a $50 reduction in price and new band choices. The company tried to tantalize users with the announcement of a full watch redesign this fall.
Down the road, we are most excited about the health care software developments. Unfortunately, there was less talk of tangible benefits and more talk of the environment and politics at the event. Yawn.
(Reprinted from the Journal of Wealth & Success, Vol. 4, Issue 3.)
(OK, got it. Take me back to the Penn Wealth Hub!)
Apple Rocks Quarter Thanks to (gulp) the Chinese Consumer
(28 Oct 15) Apple beat in Q3 on both top line revenue and bottom line profit thanks, in good part, to a strange occurrence: a 99% jump in iPhone sales within China. Several weeks ago, CEO Tim Cook alluded to good things unfolding in mainland China, but few expected revenues from the country to double in Q3 of 2015 versus the same quarter last year.
Overall, sales for the firm rose 22% year-over-year, which meant a $51.5 billion quarter for the tech giant. Even rosier, earnings were up 38% this fiscal year (the company’s fourth quarter ended on 26 Sep) over last. The gross profit margin for the firm came in at an impressive 40%. These results reflect just two days of iPhone 6S and 6S Plus sales, portending, in our opinion, a strong calendar fourth quarter.
Naysayers are pointing to the over-reliance on one product—the iPhone—for the company’s success or failure. While it is true that 62.5% of Apple’s quarterly revenue came from iPhone sales, we are bullish on new product launches. (Reprinted from this coming Sunday’s Journal of Wealth & Success, Vol. 3, Issue 42.)
(28 Oct 15) Apple beat in Q3 on both top line revenue and bottom line profit thanks, in good part, to a strange occurrence: a 99% jump in iPhone sales within China. Several weeks ago, CEO Tim Cook alluded to good things unfolding in mainland China, but few expected revenues from the country to double in Q3 of 2015 versus the same quarter last year.
Overall, sales for the firm rose 22% year-over-year, which meant a $51.5 billion quarter for the tech giant. Even rosier, earnings were up 38% this fiscal year (the company’s fourth quarter ended on 26 Sep) over last. The gross profit margin for the firm came in at an impressive 40%. These results reflect just two days of iPhone 6S and 6S Plus sales, portending, in our opinion, a strong calendar fourth quarter.
Naysayers are pointing to the over-reliance on one product—the iPhone—for the company’s success or failure. While it is true that 62.5% of Apple’s quarterly revenue came from iPhone sales, we are bullish on new product launches. (Reprinted from this coming Sunday’s Journal of Wealth & Success, Vol. 3, Issue 42.)
Apple Rolls Out Exciting New Lineup
We watched the entire event live, and walked away wanting at least two new devices.
(11 Sep 15) Last year it was the Apple Watch and Irish rockers U2 offering up their newest album to all iTunes members. This year, the live Apple event was dominated by the new iPad Pro and the latest iteration of Apple TV. We watched all two hours and twenty minutes of the live-streamed event, right down to the OneRepublic performance. We liked this event even more than the last one. Here are some takeaways, in order of appearance.
The Apple Watch got a little cooler, though it is still not on our “must have” list.
The Apple Watch was certainly at center stage in 2014, though one could argue that it didn’t live up to the multi-year hype that was generated before Apple even admitted they were working on the product. In addition to some new watch bands (yawn) and time-lapse faces (OK, that is pretty cool), Apple announced a new operating system for the watch (“watch OS2”) that will allow developers to create a new generation of watch apps. A really cool one is iTranslate, in which a user simply states a sentence into the watch, which is then translated into whichever language is desired. Not only can the translation (in the proper dialect) be heard, it can also be read on the watch face.
Time Travel will allow you to “see your future.” By turning the Digital Crown, you can look into the past, present, and future of your schedule, the weather, or news headlines you might have missed. If we find out that future news headlines can be accessed by turning the Crown, we will buy the watch posthaste. If there were any physicians watching the event, they will probably want to make the investment, as a number of intriguing medical apps are coming out soon.
Must have #1: The iPad Pro
The second item on Tim Cook’s list was the much-anticipated iPad Pro. At 12.9”, it is about 80% larger than the iPad Air 2, and much more powerful. At 1.57 lbs, it weighs almost precisely the same as the original iPad, but it is as thin as the iPad Air 2. The resolution of the Retina display makes it ideal for streaming movies, but there is nothing gimicky about the device—it is designed with the business community in mind.
The new A9X processor in the unit boasts a speed 1.9 times faster than the current generation, with graphic performance better than 80% of the portable PCs sold within the last twelve months, according to Cook. With about ten hours of battery life, it should provide professionals the ability to perform a solid day’s work without the need to stop and recharge.
In addition to the unit itself, there were a couple of iPad Pro accessories that thrilled the audience at the San Francisco auditorium. First, the Apple Pencil. This pressure-sensitive stylus is packed with features an artist or an architect could love. The responsive sensors on the surface of the tablet can read the Pencil’s pressure, position, and tilt to simulate all of the strokes of a brush or a charcoal pencil. We believe that graphic artists will embrace this machine once they give it a try and see its detailed capabilities. When the Pencil needs to be recharged, it can simply be plugged into the iPad frame with a Lightning adapter. The Pencil will sell for $99.
The other critical accessory for the $799 iPad Pro is the $169 Smart Keyboard. Visually, picture something akin to the Microsoft Surface Pro keyboard. It has a woven fabric finish giving it a much smoother feel than a traditional iPad keyboard such as the Zagg series. The keyboard attaches seamlessly to three magnetic connectors that also provide a conduit for the power—no separate charging is required, nor is a Bluetooth connection.
While one could simply use the iPad Pro as a supersized iPad, the Smart Keyboard allows for full utilization of an impressive array of productivity tools. In an interesting twist, Cook made the comment, “...who knows more about productivity than Microsoft?” He then invited a Microsoft VP on stage to talk about the possibilities of MS Office on the new iPad. As dedicated Office users, we were impressed. The integration appears to now be seamless.
Cook also had an Adobe executive on stage to discuss their new Adobe Comp CC, an ultra-cool app strictly for the iPad Pro. By using the Pencil or a finger, one can create all types of text and graphic boxes immediately on the screen. During a demo, a complete story was designed in about three minutes—from scratch! These moves are part of strategic plan to move Apple much deeper into the multi-billion dollar business enterprise arena, dominated almost entirely by the Windows operating system. We believe they will succeed.
Must-have #2: Apple TV, Gen 4!
Shortly before Steve Jobs died, he made a claim that he had finally “broken the code” for television. It seemed to die with him, as Apple TV has been pretty lackluster; at least until now.
Apple TV, Generation 4, is what consumers have been waiting for. Cook said he believes the future of television is apps, and the latest iteration of the device will run on a new operating system, tvOS, to assure it can handle the thousands of apps that will be developed for the device.
The box itself looks similar to older models, but it has been souped-up with such advances as Siri voice activation and an accompanying remote with a glass touch screen. Let’s face it, pushing buttons to navigate around an alphabet to search for a title or artist is SO 20th century, and one of the most irritating tasks a viewer must perform. All that changes with the new Apple TV. In the demo, a team member asked Siri for “that episode of Modern Family which had Edward Norton in it.” Almost instantly, she was viewing the episode on the screen!
But Siri is just the beginning of the fun. Think of the way you shop online right now, on your computer. Now, imaging being able to do all of that from your TV. That is how powerful the new Apple TV is, and we predict it will make a serious dent in Microsoft’s Xbox One and Sony’s Playstation (of course, it will be a major gaming device as well). OK, just one more cool feature (they are endless): Was your spouse talking through that last sentence uttered by the lovely and delightful “Kono” on Hawaii Five-0? Try this: “Siri, what did she say?” Siri will playback the last 15 seconds of the show, complete with closed captioning on the bottom of the screen! And don’t get us started on the apps for the rabid sports fan. It will be a must-have. Available in late October, it will retail for $149 (32GB) or $199 (64GB). Do yourself a favor and get the larger capacity.
We were so enamored with the new iPad and Apple TV that we didn’t pay much attention to Cook’s last topic: the iPhone 6S and 6S+. However, some very intriguing features to look at will be the new 3D touch and “Live Photos,” which are something between a picture and a video. Apple is also rolling out an iPhone upgrade program. For a fee, you can always have the newest model in your hands. All in all, it was a stellar September event. (Reprinted from the Journal of Wealth & Success, Vol. 3 Issue 36.)
We watched the entire event live, and walked away wanting at least two new devices.
(11 Sep 15) Last year it was the Apple Watch and Irish rockers U2 offering up their newest album to all iTunes members. This year, the live Apple event was dominated by the new iPad Pro and the latest iteration of Apple TV. We watched all two hours and twenty minutes of the live-streamed event, right down to the OneRepublic performance. We liked this event even more than the last one. Here are some takeaways, in order of appearance.
The Apple Watch got a little cooler, though it is still not on our “must have” list.
The Apple Watch was certainly at center stage in 2014, though one could argue that it didn’t live up to the multi-year hype that was generated before Apple even admitted they were working on the product. In addition to some new watch bands (yawn) and time-lapse faces (OK, that is pretty cool), Apple announced a new operating system for the watch (“watch OS2”) that will allow developers to create a new generation of watch apps. A really cool one is iTranslate, in which a user simply states a sentence into the watch, which is then translated into whichever language is desired. Not only can the translation (in the proper dialect) be heard, it can also be read on the watch face.
Time Travel will allow you to “see your future.” By turning the Digital Crown, you can look into the past, present, and future of your schedule, the weather, or news headlines you might have missed. If we find out that future news headlines can be accessed by turning the Crown, we will buy the watch posthaste. If there were any physicians watching the event, they will probably want to make the investment, as a number of intriguing medical apps are coming out soon.
Must have #1: The iPad Pro
The second item on Tim Cook’s list was the much-anticipated iPad Pro. At 12.9”, it is about 80% larger than the iPad Air 2, and much more powerful. At 1.57 lbs, it weighs almost precisely the same as the original iPad, but it is as thin as the iPad Air 2. The resolution of the Retina display makes it ideal for streaming movies, but there is nothing gimicky about the device—it is designed with the business community in mind.
The new A9X processor in the unit boasts a speed 1.9 times faster than the current generation, with graphic performance better than 80% of the portable PCs sold within the last twelve months, according to Cook. With about ten hours of battery life, it should provide professionals the ability to perform a solid day’s work without the need to stop and recharge.
In addition to the unit itself, there were a couple of iPad Pro accessories that thrilled the audience at the San Francisco auditorium. First, the Apple Pencil. This pressure-sensitive stylus is packed with features an artist or an architect could love. The responsive sensors on the surface of the tablet can read the Pencil’s pressure, position, and tilt to simulate all of the strokes of a brush or a charcoal pencil. We believe that graphic artists will embrace this machine once they give it a try and see its detailed capabilities. When the Pencil needs to be recharged, it can simply be plugged into the iPad frame with a Lightning adapter. The Pencil will sell for $99.
The other critical accessory for the $799 iPad Pro is the $169 Smart Keyboard. Visually, picture something akin to the Microsoft Surface Pro keyboard. It has a woven fabric finish giving it a much smoother feel than a traditional iPad keyboard such as the Zagg series. The keyboard attaches seamlessly to three magnetic connectors that also provide a conduit for the power—no separate charging is required, nor is a Bluetooth connection.
While one could simply use the iPad Pro as a supersized iPad, the Smart Keyboard allows for full utilization of an impressive array of productivity tools. In an interesting twist, Cook made the comment, “...who knows more about productivity than Microsoft?” He then invited a Microsoft VP on stage to talk about the possibilities of MS Office on the new iPad. As dedicated Office users, we were impressed. The integration appears to now be seamless.
Cook also had an Adobe executive on stage to discuss their new Adobe Comp CC, an ultra-cool app strictly for the iPad Pro. By using the Pencil or a finger, one can create all types of text and graphic boxes immediately on the screen. During a demo, a complete story was designed in about three minutes—from scratch! These moves are part of strategic plan to move Apple much deeper into the multi-billion dollar business enterprise arena, dominated almost entirely by the Windows operating system. We believe they will succeed.
Must-have #2: Apple TV, Gen 4!
Shortly before Steve Jobs died, he made a claim that he had finally “broken the code” for television. It seemed to die with him, as Apple TV has been pretty lackluster; at least until now.
Apple TV, Generation 4, is what consumers have been waiting for. Cook said he believes the future of television is apps, and the latest iteration of the device will run on a new operating system, tvOS, to assure it can handle the thousands of apps that will be developed for the device.
The box itself looks similar to older models, but it has been souped-up with such advances as Siri voice activation and an accompanying remote with a glass touch screen. Let’s face it, pushing buttons to navigate around an alphabet to search for a title or artist is SO 20th century, and one of the most irritating tasks a viewer must perform. All that changes with the new Apple TV. In the demo, a team member asked Siri for “that episode of Modern Family which had Edward Norton in it.” Almost instantly, she was viewing the episode on the screen!
But Siri is just the beginning of the fun. Think of the way you shop online right now, on your computer. Now, imaging being able to do all of that from your TV. That is how powerful the new Apple TV is, and we predict it will make a serious dent in Microsoft’s Xbox One and Sony’s Playstation (of course, it will be a major gaming device as well). OK, just one more cool feature (they are endless): Was your spouse talking through that last sentence uttered by the lovely and delightful “Kono” on Hawaii Five-0? Try this: “Siri, what did she say?” Siri will playback the last 15 seconds of the show, complete with closed captioning on the bottom of the screen! And don’t get us started on the apps for the rabid sports fan. It will be a must-have. Available in late October, it will retail for $149 (32GB) or $199 (64GB). Do yourself a favor and get the larger capacity.
We were so enamored with the new iPad and Apple TV that we didn’t pay much attention to Cook’s last topic: the iPhone 6S and 6S+. However, some very intriguing features to look at will be the new 3D touch and “Live Photos,” which are something between a picture and a video. Apple is also rolling out an iPhone upgrade program. For a fee, you can always have the newest model in your hands. All in all, it was a stellar September event. (Reprinted from the Journal of Wealth & Success, Vol. 3 Issue 36.)
Carl Icahn Channels Steve Jobs in his Open Letter to Apple
(19 May 15) Not long before his death, Apple founder Steve Jobs proclaimed that he had finally “cracked the code” for television. What did he mean? Jobs, a brilliant innovator and draconian taskmaster, understood the archaic way in which Americans were forced to watch television: fiddling with remotes, trying to make different “boxes” work with one another, searching for programs, toggling one by one to little letters on the screen in a vain attempt to be entertained.
Jobs envisioned a seamless digital world; one in which a person could walk near a screen mounted on a wall and simply state a desire. “Find Maverick.” Or “I am in the mood for a comedy from the 1980s.” And devices would effortlessly talk to one another (through iCloud), negating the need for any superfluous hardware, like a remote. Despite his death, analysts were certain that Jobs’ company would carry out the grand scheme he envisioned, just like the Walt Disney Company built Disney World after the eponym’s death. We have given Tim Cook the benefit of the doubt as Apple’s CEO, but it is becoming clear that he is no Steve Jobs.
That point seems to be coming home to roost in Carl Icahn’s brain as well, based on an open letter he penned to the company telling them what he expects to see happen next. Despite the firm’s announcement that it has shelved the television plans (an image of Steve Jobs storming in and handing people their heads on a plate comes to mind), Icahn has made it clear that he expects to see an ultra-high-definition Apple TV come to fruition no later than 2016. Furthermore, he told Tim Cook that he wants to see an Apple electric car by 2020. Before scoffing at that idea (the company has been toying with the idea of an electric vehicle, by the way), consider the grand visions that Steve Jobs was able to bring to fruition despite the naysayers.
The day following Apple’s announcement that it had scuttled the television, all of the “experts” came along to tell us why that was the right move. The margins were so low...Samsung sells a television set every three seconds...Americans were gravitating toward their mobile devices and away from wall-mounted devices...ad nauseam. It reminded us of when the big blowhard Mark Haines proclaimed on CNBC that there was no room between a smartphone and a laptop for a silly new device. What a waste it was, apparently, for Apple to make all of those iPads despite Haines’ warnings.
Let’s be brutally honest: Steve Jobs was a visionary who made things happen; Elon Musk is a visionary who makes things happen; Tim Cook is a decent manager who can develop new products; the sheep who deliver the news don’t get it; Carl Icahn can tell the difference between a visionary, a leader, a manager, and a group of educated dolts.
Apple could have created the breakthrough features to make the television set the central entertainment hub for Americans once again, even replacing the outdated name. A visionary would not be out writing op-ed pieces about personal lifestyle choices; he or she would be too busy planning the future in their mind, and then creating it. (Reprinted from the Journal of Wealth & Success, Vol. 3, Issue 21.)
(19 May 15) Not long before his death, Apple founder Steve Jobs proclaimed that he had finally “cracked the code” for television. What did he mean? Jobs, a brilliant innovator and draconian taskmaster, understood the archaic way in which Americans were forced to watch television: fiddling with remotes, trying to make different “boxes” work with one another, searching for programs, toggling one by one to little letters on the screen in a vain attempt to be entertained.
Jobs envisioned a seamless digital world; one in which a person could walk near a screen mounted on a wall and simply state a desire. “Find Maverick.” Or “I am in the mood for a comedy from the 1980s.” And devices would effortlessly talk to one another (through iCloud), negating the need for any superfluous hardware, like a remote. Despite his death, analysts were certain that Jobs’ company would carry out the grand scheme he envisioned, just like the Walt Disney Company built Disney World after the eponym’s death. We have given Tim Cook the benefit of the doubt as Apple’s CEO, but it is becoming clear that he is no Steve Jobs.
That point seems to be coming home to roost in Carl Icahn’s brain as well, based on an open letter he penned to the company telling them what he expects to see happen next. Despite the firm’s announcement that it has shelved the television plans (an image of Steve Jobs storming in and handing people their heads on a plate comes to mind), Icahn has made it clear that he expects to see an ultra-high-definition Apple TV come to fruition no later than 2016. Furthermore, he told Tim Cook that he wants to see an Apple electric car by 2020. Before scoffing at that idea (the company has been toying with the idea of an electric vehicle, by the way), consider the grand visions that Steve Jobs was able to bring to fruition despite the naysayers.
The day following Apple’s announcement that it had scuttled the television, all of the “experts” came along to tell us why that was the right move. The margins were so low...Samsung sells a television set every three seconds...Americans were gravitating toward their mobile devices and away from wall-mounted devices...ad nauseam. It reminded us of when the big blowhard Mark Haines proclaimed on CNBC that there was no room between a smartphone and a laptop for a silly new device. What a waste it was, apparently, for Apple to make all of those iPads despite Haines’ warnings.
Let’s be brutally honest: Steve Jobs was a visionary who made things happen; Elon Musk is a visionary who makes things happen; Tim Cook is a decent manager who can develop new products; the sheep who deliver the news don’t get it; Carl Icahn can tell the difference between a visionary, a leader, a manager, and a group of educated dolts.
Apple could have created the breakthrough features to make the television set the central entertainment hub for Americans once again, even replacing the outdated name. A visionary would not be out writing op-ed pieces about personal lifestyle choices; he or she would be too busy planning the future in their mind, and then creating it. (Reprinted from the Journal of Wealth & Success, Vol. 3, Issue 21.)
Apple Bond, Anyone?
(04 Feb 15) So Apple made a bottom line, record profit of $18 billion last quarter. It makes sense that it would also be hoarding a record amount of cash for a company—a cool $142 billion, give or take. Why on earth would a company with that kind of jack in a bank account need to issue bonds to raise capital?
It’s actually a smart move. By issuing bonds at these record low interest rates, the company can avoid paying the confiscatory US government taxes by keeping $100 billion of their cash outside the US, where it was earned. Stupid law.
So, should you buy an Apple bond? Considering that their 30-year issue will pay you 3.5% annually, and is virtually guaranteed to go down in value as interest rates rise, the only winner will be Apple. Nonetheless, the pitiful interest rate yields available today means they will sell their $6.5 billion of bonds in no time flat. (Reprinted from the Journal of Wealth & Success, Vol. 3 Issue 6.)
(04 Feb 15) So Apple made a bottom line, record profit of $18 billion last quarter. It makes sense that it would also be hoarding a record amount of cash for a company—a cool $142 billion, give or take. Why on earth would a company with that kind of jack in a bank account need to issue bonds to raise capital?
It’s actually a smart move. By issuing bonds at these record low interest rates, the company can avoid paying the confiscatory US government taxes by keeping $100 billion of their cash outside the US, where it was earned. Stupid law.
So, should you buy an Apple bond? Considering that their 30-year issue will pay you 3.5% annually, and is virtually guaranteed to go down in value as interest rates rise, the only winner will be Apple. Nonetheless, the pitiful interest rate yields available today means they will sell their $6.5 billion of bonds in no time flat. (Reprinted from the Journal of Wealth & Success, Vol. 3 Issue 6.)
Apple Historic Quarter
(28 Jan 15) Following a bloodbath day that saw the Dow drop as much as 390 points on the back of bad earnings reports, Apple charged in and saved the subsequent session with the largest profit by a publicly-traded company in history.
In what can only be described as staggering, the company announced 4th quarter profits of $18 billion. That is bottom line, net income profit to the firm. Feeding this figure was the sale of over 74 million iPhones, mainly the new iPhone 6 and 6 Plus, in the quarter…
(Read the entire story in this Sunday’s Journal of Wealth & Success, Vol 3 Issue 5.)
(28 Jan 15) Following a bloodbath day that saw the Dow drop as much as 390 points on the back of bad earnings reports, Apple charged in and saved the subsequent session with the largest profit by a publicly-traded company in history.
In what can only be described as staggering, the company announced 4th quarter profits of $18 billion. That is bottom line, net income profit to the firm. Feeding this figure was the sale of over 74 million iPhones, mainly the new iPhone 6 and 6 Plus, in the quarter…
(Read the entire story in this Sunday’s Journal of Wealth & Success, Vol 3 Issue 5.)
Apple Is Quietly Building Something Big
(04 Feb 14) As the wizards of smart have been jumping on the Apple-bashing bandwagon, the Cupertino tech giant has quietly been amassing enormous amounts of bandwidth and building an Internet infrastructure to support something big.
While Apple's iTunes and app store, along with the newer iCloud service, gobble up a lot of bandwidth, the firm is preparing for something larger. More than likely, that means the long-awaited Apple TV service and, perhaps, televisions, in addition to a new line of wearables connected to the Apple ecosystem. After getting stung by the company's development of the first "real" tablet, the iPad, competitors have been quick to jump on any ideas being circulated in the Mac rumor mill. For example, when smart wrist watches were discussed, Samsung quickly launched its own line, which looked like toys you would find at a Buck Rogers convention. As chumps like John Sculley espouse their corrupted views, Apple has remained dedicated to getting it right rather than getting it to market quicker than anyone else, and this is likely to be no different. That is certainly a trait that the firm's current CEO, Tim Cook, inherited from founder Steve Jobs.
When asked about these near-future projects, Cook merely responds that the firm has a "grand vision" for what is to come. We interpret that as meaning Apple wants to control everything from what you listen to, to what you watch, to how you control the gadgets in your home and automobile. Recent hires add fuel to the fire. Last September the firm picked up a high-powered systems engineer and senior executive from Comcast, and more recently they snagged a former VP of technology development from TV consortium CableLabs. Putting the pieces of the puzzle together, one could imagine a reverse Google-like plan of attack. Google began as a software and search engine giant, but has been moving at breakneck speeds into hardware-oriented businesses, such as their Google Fiber high-speed Internet system, Google glasses, smartphones, and tablets. Apple has moved from making devices to controlling a larger portion of the systems software pie, and their largest chunk of revenue is coming increasingly from their services side.
As the linear-thinking business gurus wring their hands, we should be able to look back in a few years and wonder why we didn't pick up more shares of Apple as the price hovered around $500 during the chilly first couple of months of 2014.
(As of the date of this article, AAPL is in the Penn Global Leaders Club.)
(04 Feb 14) As the wizards of smart have been jumping on the Apple-bashing bandwagon, the Cupertino tech giant has quietly been amassing enormous amounts of bandwidth and building an Internet infrastructure to support something big.
While Apple's iTunes and app store, along with the newer iCloud service, gobble up a lot of bandwidth, the firm is preparing for something larger. More than likely, that means the long-awaited Apple TV service and, perhaps, televisions, in addition to a new line of wearables connected to the Apple ecosystem. After getting stung by the company's development of the first "real" tablet, the iPad, competitors have been quick to jump on any ideas being circulated in the Mac rumor mill. For example, when smart wrist watches were discussed, Samsung quickly launched its own line, which looked like toys you would find at a Buck Rogers convention. As chumps like John Sculley espouse their corrupted views, Apple has remained dedicated to getting it right rather than getting it to market quicker than anyone else, and this is likely to be no different. That is certainly a trait that the firm's current CEO, Tim Cook, inherited from founder Steve Jobs.
When asked about these near-future projects, Cook merely responds that the firm has a "grand vision" for what is to come. We interpret that as meaning Apple wants to control everything from what you listen to, to what you watch, to how you control the gadgets in your home and automobile. Recent hires add fuel to the fire. Last September the firm picked up a high-powered systems engineer and senior executive from Comcast, and more recently they snagged a former VP of technology development from TV consortium CableLabs. Putting the pieces of the puzzle together, one could imagine a reverse Google-like plan of attack. Google began as a software and search engine giant, but has been moving at breakneck speeds into hardware-oriented businesses, such as their Google Fiber high-speed Internet system, Google glasses, smartphones, and tablets. Apple has moved from making devices to controlling a larger portion of the systems software pie, and their largest chunk of revenue is coming increasingly from their services side.
As the linear-thinking business gurus wring their hands, we should be able to look back in a few years and wonder why we didn't pick up more shares of Apple as the price hovered around $500 during the chilly first couple of months of 2014.
(As of the date of this article, AAPL is in the Penn Global Leaders Club.)
Apple Deal with China Mobile a Huge Win for the iPhone Maker
(23 Dec 13) China Mobile is the big daddy of telecom in China, with a whopping 750 million mobile accounts--more than twice the population of the United States. While American tech giant Apple (AAPL) already had an agreement with two smaller players in China, China Mobile remained one of the last major carriers in the world that didn't offer the iPhone. That is, until now.
Apple has announced that it will begin offering the iPhone on China Mobile's network beginning January 17, which will be in time to take advantage of the Chinese New Year celebration, a big gift-buying season. But how many phones the company will sell, and the amount it will receive from Chinese Mobile is up for debate. In our best estimates, the deal will likely mean the sale of approximately 30 million phones through the alliance. To put that figure in perspective, it would be the equivalent of America's largest mobile carrier, Verizon, selling each of its customers three new phones at once.
Apple currently has nine standalone stores in China, with the unsubsidized price of the iPhone 5S listing for about $900. The lower-cost 5C version with 16-gig capacity lists for $735. Both phones will operate on the advanced fourth-generation network that received approval from the Chinese government just a few weeks ago.
Apple has a lot of room to grow in China, as it makes up a paltry 6.2% of smartphone sales in the country, lagging far behind main rival Samsung Electronics of South Korea. That being said, the Apple device should appeal more to the affluent customer in China, and China Mobile has a much larger percentage of that growing demographic group than that other two telecom firms Apple deals with now. Apple remains an undervalued play in our opinion.
John Sculley, Goofball Who Fired Steve Jobs, May Try to Buy Blackberry
(28 Oct 13) I really don't understand why the buffoon who fired Steve Jobs from the company he founded gets any airplay on the news, but for some reason John Sculley is often called in as the "expert commentator" on tech matters. It wasn't just that he fired Jobs, arguably one of the brightest tech minds of the computer age, it was that he did so while proclaiming that "Jobs won't be missed at all...." Thus began Apple's spiral downward until, fittingly, Jobs made his great return and fired Sculley. Sculley's low-class and pompous comments after firing Jobs earns him a place on our Wall of Shame, whose most recent inductee was former JC Penney CEO Ron Johnson--the man likely to be known for killing the famed 100-year-old retail chain.
Enter Blackberry, the beleaguered former king of the smartphone, whose stock price dropped from a high-flying $145 per share to the swampy marshland share price of $8. Sculley has floated his intentions of, possibly, bidding for the company. It's as if the Scull-man is still smarting from being fired by the Jobs, and is out to prove himself.
Canada is also out to prove itself, as Blackberry was once one of its flagship companies. As is so often the case, pride gets in the way of good business savvy, thus creating opportunity for investors with a clear mind. Sculley's bid would be a joint venture with Canadian partners, and commented to the Canadian press that "he's a longtime Blackberry fan and user, and that...there's a lot of future value in Blackberry." What value? And how long has he been a user? Had he remained the CEO of Apple, we doubt the iPhone would exist today, so on what basis is he qualified to run Blackberry?
As the company is a walking zombie now, however, what could it hurt to have the guy who ran Apple into the ground take the helm. From an entertainment standpoint, we are rooting for him. Maybe he can hire former Apple exec Ron Johnson to be his lieutenant. Martha Stewart could design the BlackBerry Z30 cases, and Ellen Degernes could spearhead the marketing campaign--her French descent should help Sculley sell his Canadian partners on that one.