It’s getting kind of crazy in the world of Apple, as the stock drops the sky falls. That’s actually a loaded statement and a glass half empty point of view. Apple’s stock is dropping, as a matter of fact recent numbers show it’s as low as it’s been in the last year. Apple opened up at $430.27 this morning and is trending upwards at about $450 at the time of this post. That’s definitely a far cry from it’s 52 week high of $705.07
The Facts: (According to Apple Press Release)
On January 23, 2013—Apple announced financial results for its 13-week fiscal 2013 first quarter, which ended December 29, 2012. The Company posted record quarterly revenue of $54.5 billion and record quarterly net profit of $13.1 billion. These results compare to revenue of $46.3 billion and net profit of $13.1 billion in the 14-week year-ago quarter. Gross margin was 38.6 percent compared to 44.7 percent in the year-ago quarter. International sales accounted for 61 percent of the quarter’s revenue. Average weekly revenue was $4.2 billion in the quarter compared to $3.3 billion in the year-ago quarter.
Apple sold a record 47.8 million iPhones in the quarter, compared to 37 million in the year-ago quarter. Apple also sold a record 22.9 million iPads during the quarter, compared to 15.4 million in the year-ago quarter. The Company sold 4.1 million Macs, compared to 5.2 million in the year-ago quarter. Apple sold 12.7 million iPods in the quarter, compared to 15.4 million in the year-ago quarter.
The Speculation: (According to John Koetsier of Venture Beat)
The only problem? Wall Street’s consensus numbers were $54.58 billion (Apple just beat that), 50 million iPhones (Apple actually sold 47.8 million), 23 million iPads (Apple just about made it, selling 22.9 million), 12 million iPods (under Street estimates), and 5 million Macs (well under Street estimates).
The Truth: (According to Me)
The truth of the matter of why Apple’s stock is dropping is because of all of the late adopters and bandwagoner’s expecting Apple to deliver apples, oranges, strawberries and the moon. An even greater truth about why Apple’s stock is dropping is because there’s no Steve Jobs.
No matter how you slice it, Steve Jobs wasn’t only the visionary leader for Apple, his name and face were as iconic as the Apple logo itself. Anytime there was a new release of a project, device, operating system or whatever during Apple’s World Wide Developer Conference, everyone was tuned in with great anticipation. As a matter of fact “Steve Jobs” would trend on Twitter often times before “Apple” would.
Don’t get me wrong, I’m not naïve to believe that there are not great people behind the scenes that are actually the folks making things happen at Apple; however I’m also not naïve to believe that the Steve Jobs’ persona (or lack thereof) plays into the the thoughts and decisions of the speculators. The facts don’t lie… Apple is in great financial shape, having more cash on hand than the US Treasury. As other companies are downsizing, Steve Jobs’ visionary leadership set Apple up well to live beyond him and continue building the faithful Apple Tribe. This simple mantra is the catalyst for Apple’s continued success:
“A lot of companies have chosen to downsize, and maybe that was the right thing for them. We chose a different path. Our belief was that if we kept putting great products in front of customers, they would continue to open their wallets.” ~Steve Jobs
Steve Jobs was actually a big deal, so much so that his name was synonymous with the brand. On the other hand, the majority of people that own Apple devices, and many of you reading this post, don’t even know the new Apple CEO’s name.
That’s The Truth!
What do you think?