As Steve Jobs came to the end of his presentation at Macworld, Apple (NASDAQ: AAPL) shares were off almost 6%.
Jobs had little to say to excite shareholders. His announcement that the company had sold four million iPhones to date seems light compared to some analysts' estimates.
Jobs also said the company would cut the price of the Apple TV product. Cutting the price, and presumably the margin, on a product no one wants will not add any money to the revenue line.
Perhaps the biggest mistake Jobs made was to launch the MacBook Air into the teeth of a recession. It may be nice to own the world's thinnest notebook, but who has $1,800? All the people who can't pay their mortgages?
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 2 of 2)
1-16-2008 @ 3:31AM
Gumby said...
Laws of diminiutive returns get out while you can.. or is it laws of diminishing returns whatever..
1-16-2008 @ 3:09AM
Gumby said...
Dont you think you would look better lipreading "is" rather than "arrrrre" as in braying ...
1-16-2008 @ 3:12AM
Gumby said...
feeble minded mold licking nitpicker you are!!
1-16-2008 @ 3:22AM
Gumby said...
Any intelligient person would reply and ask me to please elaborate it further instead of making diverting replies. Mac users seems to believe strongly that they are capable of transcending into higher levels of economic consiciousness by paying $1800 for a air Mac on a 3.9% transfer new credit card from Citibank.
1-16-2008 @ 3:24AM
Gumby said...
I insist on using singular grammar for all subjects since Macs is so singular that it is really nonexistental...
1-16-2008 @ 8:43AM
mj said...
Remember that the iPod succeeds when it hasn't features that other MP3 player have. The iMac succeeded despite the naysayers for the same reason. The iPhone has 19% of the Smartphone market, despite not having every doohickey of every other smartphone.
True, the actions of shifty mortgage lenders seem to be bringing the US into a recession but that may also have to do with war overspend, a general trend of the individual to overspend on credit and the self-predicting fears of the market itself.
Even if the US dwindles into recession, Apple will be targetting the MacBook Air worldwide which means that a substantial amount of revenue (when you take into account the extra premium in Europe for Apple machines) will be coming from outside the US.
Sure, it's a flawed machine but I can't remember the last time I used more than one USB port anyway.
Maybe Jobs is right?
3-04-2008 @ 9:45PM
David Valentine said...
Now we find Apple selling lefty political thoughts via has-been one hit wonder Randy Newman. I thought he was dead, guess not (if you care). Sell neat computers, not foolish social non-sense, thanks!
1-17-2008 @ 6:18PM
Antonio Goicochea said...
Apple has become most hip and popular - and remained pricey - in a time when the discretionary dollars of the masses is decreasing and or going into hiding towards the P&G's, Colgate's, and Campbell Soups of the world.
To succeed, an eye on aesthetics and good pricing will be necessary to retain or increase brand popularity.
Unfortunately this argument is too 2-Dimensional and the overall factors affecting the market obscure the reality of executing an effective and efficient plan to win more shareholder loyalty / converts leaving the discouraged and shaken investor as a bedfellow in the tender arms of more attractive pieces of paper, or seeking a make-up with their long lost - and or remaining - cash.
1-18-2008 @ 4:01PM
McDave said...
It's OK, they're just allowing smarter investors to buy lower.
Apple created the digital music download market by getting people to let go of those silver discs. I'm sure they can do it again with the video rentals as this is the primary market for the other silver discs.
Those third silver discs ain't gettin' off the ground (what has Steve Jobs got against them? Maybe someone shoved one up..)
McD
1-22-2008 @ 5:38AM
Peter, The Peter Files Blog of Comedy, Satire, Jokes, Commentary and Videos said...
The market hated the speech because Jobs was targeting his speech to the customers and not to investors.
As a result, the speech was more about what potential product customers cared about, price discounts, product features, than what the market cares about - how these new changes/products would increase APPL profitability.
The market should perhaps not be looking to the MacWorld keynote speech for definitive market analysis information as this speech has never been truly targeted towards investors. Perhaps Jobs needs a separate post-speech news release specifically addressing market concerns, or a different forum after the speech altogether, say at meeting of investors or those types, in which this type of information can be packaged.
I think that as long as this speech is seen by consumers as Apple's big 1st half product roll out, I am not sure how investors are going to be very happy with the way Jobs announcements are portrayed. Different audience. Different message. Buy product. Not buy stock.
Also, as seen in another post, I mentioned that last year's act was a tough one to follow. Especially in a year clouded by such great fear of a recession.
Boy, a lot can change in 8 years, can't it. Too bad we don't have Clinton in the White House anymore. Say, wait a minute..... ROTFLOL
That was a jibe, not a statement or political ad. (:-)
Peter, Chief Editor and Spelling Wrecker
The Peter Files Blog of Comedy, Satire, Jokes, Commentary, Videos and Really Bad Financial Advice Not Worth The Electrons Its Written On
Http://ThePeterFiles.blogspot.com