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An honest question. Why? Does Apple not make enough money, do they need to grow?
by laichzeit0 10y ago
An honest question. Why?
Does Apple not make enough money, do they need to grow?
- dx034 10y agoNo, but without new ideas they'll soon start to shrink. Apple is in a very fast business, not coming up with new ideas means losing business very quickly. They could of course just enjoy sales from the iphone and live off past innovation, but that would mean that they could cut costs by at least 50% and fire most of the workforce. Don't know if that's what they want.
- SyneRyder 10y agoThey're a public company. If the company isn't growing, there's little incentive to hold the stock. (The current 2% dividend is a pitiful return, you can get that level of return from an Australian savings account.) If they're not growing & the dividend isn't big enough, then the stock price (and hence company value) will start falling as people cash out. If Apple can take themselves private again, there will be less pressure on them to keep growing.
- laichzeit0 10y agoIf as you say the stock price falls, Apple could just buy back their own stock. They have a huge cash reserve. What I'm getting at is I think everybody is overly concerned that Apple isn't releasing any "new" devices. They don't really have to. Looking at market share, they completely dominate on the products they already have. If anything, they can sit back, wait for the "next big thing" and do what Apple typically does best: Copy it, and make it so much better.
- arvinsim 10y agoApple is a publicly traded company after all.