Jan. 28 - Breakingviews columnists discuss the tech giant’s modest quarterly results and its need to freshen up a thin selection of mega-hits.
Apple's part wasn't exactly -- set by the announcement of its quarterly results yesterday but. That's somewhat flat performance didn't exactly the real the market either slicing some forty billion dollars off of its market value. But now the problem seems to be that the company has relied for too long. On too few products and needs to do suppression. A company that and then there are courses BI find it's well over half of company's sales and need a bigger chunk of profits. Right and the problem is it's it's growing but not as fast as ever expects and also Apple's also losing market share to. Two rivals like Samsung yeah. That's a problem because now mobile phones says cells are -- -- starting to slow -- become more competitive and that means that Apple's relying you know the big chunk of its earnings are current on this market that's kind of slow -- governor was talking about China China is very as the future obvious for obvious reasons what what what's happening there that's still -- -- -- -- well they've seen. Seems like I'm so the big story was that Chinese apples and apples and talking for years about China Mobile eventually when he starts -- iPhone skinny big mark because. They're the biggest operator in the world by far. The problem is that apple came out with. Guidance for next quarter and basically they said revenues probably gonna fall. It could be apple sandbag and got a history of doing that but it could also indicate that base they think that China isn't quite as as. Bullish as I don't know if what. One thing hasn't seen says that revenue mindful of it's it's symptomatic of the fight that. If you look at the numbers and revenue profit everything's been going less quickly well I mean we just think back a year or two. For a company that big to be -- as thousands of water that was extraordinary expectations say it's our politicians of very high but if you look at the -- so the apples in -- the but I guess hardware is kind of limits people classified but that's going to be quite right now. It's still growing okay now EPS growth at least one of the strongest and yet the -- all of valuation gracious arm. You know publicity the lowest close look at HP there instance but -- unity wouldn't put apple leads the in the same putter hasn't invested one's one's one's really -- -- one's not there. So and even without Steve Jobs and even with this history of huge launches that seems like it's really -- to repeat and you wouldn't. Bet against that and another apple product that was the success you this so now. It -- -- -- the passionate that looks even more the valuation looks even most sort of stuff Cleveland compared to. It wasn't so it's it's and it's a funny sort of way that investors look at this and not when courtship display an offense miles but it -- even low when already looked kind of let. So whatever happened it probably wasn't worth forty billion dollars at the time. So welcoming the company here -- it would -- too few products need to freshening up like. What I mean what what what's common -- everywhere like it's apples they don't really know that yet there are lots talk of the watch for instance that's yeah that's the thing. Right where the TV could be so he -- the watches these days and that's huge and you may as well it breaks it all kinds again. I think it's the company that introduced the watched they've been didn't really ludicrous failures I mean you look at Samsung's locked they had all -- -- watch. It is it's really bad and I kind of reminds me also when we had MP3 players departments are using iPods you know. They weren't very good you know mom and then -- had -- Apple's just producing iPod who -- and iron and a digital music player -- is one of many. And the thing is they did a much better organized let the operative I can look forward to that so will be looking at the store who was waiting for next quarter's results. In the meantime stay tuned for more breaking news tomorrow.