The big crash. Apple plummets in the stock market

Apple's mega-crash on the stock market when presenting results. It sells more but earns less. The fact is that the shares that were worth more than 700$ in September, making the Cupertino brand the most valuable company in history, today are at 450$. Right now it's down more than 12%. Let's think that one 12% of Apple is more money than our two main banks combined, BBVA and SCH, are worth.
I already I notifiedApple was premium, and it is not normal for a premium product to have those margins or that market share.
Moreover, Steve Jobs was not replaceable, he was a genius and also a tyrant, Tim Cook always lived under his tyranny ergo he could not have the personality to make real decisions. And the succession of Steve Jobs needed to make real decisions, and therefore to be able to make mistakes.
Meanwhile, Amazon, the company whose flagship is its high tolerance for failure, continues to grow and consolidate its position as the undisputed king of eCommerce, hosting and e-books.


Comments

2 responses to "The big crash. Apple plummets in the stock market”

  1. Maybe Apple was not worth so much before and not so little now. The stock market is less and less correlated with the real value of companies based on reasonable growth prospects and profits to be distributed.
    Economic theory states that extraordinary profits are not sustainable in the long term, since high margins encourage the entry of competitors whose competition erodes those margins.
    I don't think it would have been any different with Jobs either, Jobs also had a period where his creativity didn't help Apple to keep going.
    Maybe Apple's future lies in not being so premium and doing just that by selling more and earning less. For a FMCG company that doesn't pay dividends and whose shareholders are shareholders on mere speculation that the next product will heat up the stock, I sincerely believe that the current situation is socially the best: if their products are so great, making them more affordable and reaching more people is great.
    Disclaimers, I have a Mac, but I don't use an iPhone or iPad.

  2. Jobs' magic was to generalize a premium product. Maybe Apple will stop being high-end, but its margins will have to drop a lot.

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