3 ms·

> one trick pony ... a worrying thing Apple does more than the iPhone. They have a profitable computer business too. So it's only worrying thing for Apple if

> one trick pony ... a worrying thing Apple does more than the iPhone. They have a profitable computer business too. So it's only worrying thing for Apple if they start relying on that single product. If they keep (fixed) expenses down so they can live without the cash cow, then it's no problem. It's very often the high fixed expenses that get you. Same with people getting a new job where they earn less: the unsellable expensive house is a problem, eating out too often is not an unfixable problem.

blumkvist 11y ago
>If they keep (fixed) expenses down so they can live without the cash cow, then it's no problem. That totally depends on how you define "problem". I believe the market will definitely have a problem with the current asking price of the owners for 1 share of the company if the iphone stops being a thing. This will make the owners very worried indeed.
- HiYaBarbie 11y ago
  A stock market crash is coming either way. Why? Because nothing has been fixed since 2008, the official US unemployment rate is a sham, and so on.
  - dagw 11y ago
    A stock market crash is coming either way A stock market crash is always coming. If you can't say if it's coming next month, next year or next decade, then the statement contains no information.
    - HiYaBarbie 11y ago
      > A stock market crash is always coming. And you complain about a statement containing no information? The thing is, no one knows exactly when a crash will happen. But some people know that one will happen say, within the next five years, and that it's going to be worse than 2008 and 2001 because the underlying problems have only been getting worse.
      - venomsnake 11y ago
        The markets can stay irrational for longer that you can stay solvent.
        HiYaBarbie 11y ago
        That's certainly true, but not really relevant :)
      - blumkvist 11y ago
        Oh great. More doomsday jibberish. Listen gais!!!! A market crash is comming! I read it on a blog. Brace yourselves! (You heard it here first)
        HiYaBarbie 11y ago
        So you're proudly sticking your head up your ass, or something? Do you also think Greece's problem of having way too much debt was fixed by loaning it ~80B dollars more?
_nedR 11y ago
Nobody is worried about Apple's survival. Barring doomsday scenarios, Apple looks set to be a very large, very profitable company for the foreseeable future. Just like Microsoft. They are worried about Apple's growth prospects. Once the Chinese markets are saturated, where next? And if Apple does not innovate, they could end up losing market-share to competitors when they inevitably catch up. Once that point is reached, Apple's only option is too undercut them on price (and with huge cash reserves and market clout, Apple is in a much better place to do this). But this means reduced margins, and shrinking profits (although they may stabilise to very respectable level). Apple has so far avoided this by staying ahead of the competition through innovation, entering new markets with sub-par competition like they did with the iPod, iPhone or creating entirely new ones like they did with iPad and iTunes. Before you say that Apple didn't invent the tablet, the digital music marketplace, or the mobile software marketplace - None of that matters - in real money terms, Apple as good as did. But what new markets are there for Apple to enter? People think the electric car market is a right fit for Apple. The article says that the global premium car market as a whole is currently only worth 220 billion dollars per annum ( don't know whether this includes the premium compact market as well ) which is not much when considering the fact that iPhone's sale for previous 12 months was 100 billion. And the automobile market is highly competitive with plenty of incumbents with over 100 years of experience. Perhaps Apple could transform the business model of the market to make it much bigger, But like with the smartwatch, Apple is possibly late to the game, with Tesla, Google, Uber, all working frantically to do the same (each with their own vision and approach). In my personal opinion, Apple still has plenty of room to enter and exploit the market. In conclusion, investors are worried whether Apple's party of year-over-year growth in revenue and profits which it has sustained over the last decade is finally over.
- IBM 11y ago
  How does Nike deal with saturation once everyone who's going to buy one gets a pair of Nike running shoes?
  - dagw 11y ago
    Partially by expanding into clothing and sports gear and partially by turning themselves into a fashion company and convincing people that they have to own lots of different shoes in lots of different colors.

blumkvist 11y ago

>If they keep (fixed) expenses down so they can live without the cash cow, then it's no problem. That totally depends on how you define "problem". I believe the market will definitely have a problem with the current asking price of the owners for 1 share of the company if the iphone stops being a thing. This will make the owners very worried indeed.

HiYaBarbie 11y ago
A stock market crash is coming either way. Why? Because nothing has been fixed since 2008, the official US unemployment rate is a sham, and so on.
- dagw 11y ago
  A stock market crash is coming either way A stock market crash is always coming. If you can't say if it's coming next month, next year or next decade, then the statement contains no information.
  - HiYaBarbie 11y ago
    > A stock market crash is always coming. And you complain about a statement containing no information? The thing is, no one knows exactly when a crash will happen. But some people know that one will happen say, within the next five years, and that it's going to be worse than 2008 and 2001 because the underlying problems have only been getting worse.
    - venomsnake 11y ago
      The markets can stay irrational for longer that you can stay solvent.
      - HiYaBarbie 11y ago
        That's certainly true, but not really relevant :)
    - blumkvist 11y ago
      Oh great. More doomsday jibberish. Listen gais!!!! A market crash is comming! I read it on a blog. Brace yourselves! (You heard it here first)
      - HiYaBarbie 11y ago
        So you're proudly sticking your head up your ass, or something? Do you also think Greece's problem of having way too much debt was fixed by loaning it ~80B dollars more?

_nedR 11y ago

Nobody is worried about Apple's survival. Barring doomsday scenarios, Apple looks set to be a very large, very profitable company for the foreseeable future. Just like Microsoft. They are worried about Apple's growth prospects. Once the Chinese markets are saturated, where next? And if Apple does not innovate, they could end up losing market-share to competitors when they inevitably catch up. Once that point is reached, Apple's only option is too undercut them on price (and with huge cash reserves and market clout, Apple is in a much better place to do this). But this means reduced margins, and shrinking profits (although they may stabilise to very respectable level). Apple has so far avoided this by staying ahead of the competition through innovation, entering new markets with sub-par competition like they did with the iPod, iPhone or creating entirely new ones like they did with iPad and iTunes. Before you say that Apple didn't invent the tablet, the digital music marketplace, or the mobile software marketplace - None of that matters - in real money terms, Apple as good as did. But what new markets are there for Apple to enter? People think the electric car market is a right fit for Apple. The article says that the global premium car market as a whole is currently only worth 220 billion dollars per annum ( don't know whether this includes the premium compact market as well ) which is not much when considering the fact that iPhone's sale for previous 12 months was 100 billion. And the automobile market is highly competitive with plenty of incumbents with over 100 years of experience. Perhaps Apple could transform the business model of the market to make it much bigger, But like with the smartwatch, Apple is possibly late to the game, with Tesla, Google, Uber, all working frantically to do the same (each with their own vision and approach). In my personal opinion, Apple still has plenty of room to enter and exploit the market. In conclusion, investors are worried whether Apple's party of year-over-year growth in revenue and profits which it has sustained over the last decade is finally over.

IBM 11y ago
How does Nike deal with saturation once everyone who's going to buy one gets a pair of Nike running shoes?
- dagw 11y ago
  Partially by expanding into clothing and sports gear and partially by turning themselves into a fashion company and convincing people that they have to own lots of different shoes in lots of different colors.