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Apple vs. AAPL

Neil Cybart, “The Two Apples”:

Just as Wall Street is nervous about AAPL’s changing revenue sources, Apple’s ultimate success is built on that very ideal. Even though Apple was the “iPod company” yesterday and the “iPhone company” today, management’s goal is to make sure that Apple will one day be known as something else, such as the “car company” or the “personal transport company.” This isn’t to suggest that Apple will change its culture and mission statement depending on where growth can be found. Instead, management looks to enter product categories that make it possible to advance Apple’s goal of making technology more personal. In the beginning, such a goal was achieved with the Mac but soon included the iPod, then iPhone and iPad, and now Apple Watch. […]

While AAPL investors look at changing revenue sources and Apple entering new industries as risk factors, for Apple such characteristics are normal business and according to plan. It is this divide that will likely continue indefinitely, suggesting it is unwise to expect AAPL to one day begin to follow Apple. Just as a declining AAPL stock price is no indication of a struggling Apple, there will likely come a time when AAPL outperforms peers even though Apple, the company, may be struggling.

Part of what makes Apple so interesting to write about is that the company is so widely misunderstood.

Thursday, 14 January 2016