Recently, Apple (NASDAQ: AAPL) shares sold off on the announcement that company leader Steve Jobs would skip the keynote address at the next Macworld convention. This news fueled speculation that Jobs was in poor health.
Concern over succession at AAPL has become sport of late, and it's a big deal to certain investors. Shares dropped some $15 on the news.
Shares of AAPL have fallen more than 50% since late last year, even though the company has solidified its position in the PC market, maintained its lead in digital music and introduced one of the most exciting, must-have electronic items in 2008 -- the iPhone
AAPL is THE definitive growth company, and it is positioned to do well despite a weak economy.
That strength will translate into a dominant position in the market when times are good and consumers are flush with cash.
Think about it. If people are buying AAPL products when times are tough, imagine what will happen when consumers feel more confident about the future.
Hello, I am a PC, but I want to be a Mac.
That fun-loving advertising campaign is incredibly effective because it's so true. Admit it. If you are a PC user, you really want to be a Mac user.
My bet is that in due time you will be.
I've been a PC user since owning a Commodore VIC-20 in the early 1980s. Sucked in by the Microsoft (NASDAQ: MSFT) machine, I continued to use a PC for the next 25-plus years. Being a Word and Excel user, Microsoft made my addiction easy.
Whenever I was in the market for hardware, I naturally gravitated to the machine that was pre-packaged with the software that I needed and was familiar with. Not being in the graphic design business, I really never even considered owning an Apple product.
Now, I am very close to making the move. The bottom line is that their product is far superior to the PC. My needs are changing, and software for word processing and spreadsheet calculations are quite similar.
The only reason to stay a PC is price.
Apple is an amazing company. It is absolutely firing on all cylinders and performing quite well despite the global recession and credit crisis.
With all due respect, Steve Jobs could be dead for 10 years and this company will still be growing with existing key products and those now in the pipeline. Who cares about succession?
I don't and you shouldn't either. Use this nonsensical reason for selling the stock as a buying opportunity. And if you're concerned about Jobs' health, then send him a get well card.
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Reader Comments (Page 1 of 1)
12-25-2008 @ 7:21PM
sean said...
You hit it right on the head Jamie. The fact that Apple is growing 3 times faster than the rest of the industry is quite telling. People seem to forget we have been in a recession since last year and Apple is "still" selling products like hot-cakes.
And don't even get me started on the GAAP accounting of the iPhone. Apple hasn't even "realized" 70% of that revenue yet.
Just stop telling everyone, so I can add to my position at the cheapest price possible.
12-27-2008 @ 9:38PM
lute said...
This was a good piece.
I sure hope Steve is feeling ok because the guy has done more artists in the broadcast industry than consumers can ever understand. Our affection for Steve transcends Aaple stock. I know it will soar.
1-17-2009 @ 12:40PM
sloane said...
Dr. Tantillo ('the marketing doctor') did a post back in July on his branding blog, pointing out that Jobs and Apple are two separate--albeit intertwined--brands. He insisted that while Jobs is irreplaceable, he should address the question of succession Now (well, then, in July) to best secure Apple's future--and reassure stockholders. It makes sense to at least have a plan in place.
Full post: http://blog.marketingdoctor.tv/2008/07/24/brand-advisory.aspx
1-15-2009 @ 5:09AM
Pam said...
Is there a site where we can wish Steve well in his efforts to regain his health?
I am eternally grateful for my Mac ... IT WORKS! I went thru countless pcs (Dells, Gateways, whatever). They were usually great for all of 3 months. My Mac is 3 years old and still works like a charm!
THANK YOU STEVE JOBS!