Don’t be fooled by the coming iWatch.
Don’t see Apple’s new TV product as the dawn of a new era of Apple innovation.
The new products you’re going to see from Apple this year and next are the final new designs coming to fruition from Steve Jobs’ vision. And that means that in just a few short years, Apple is at risk of losing its throne as the world’s most valuable band.
Think about this for a moment…what happens after these products fall into the same iterative cycle of the current line of Apple products such as the iPad, iPhone, MacBooks and Mac Pros?
As an investor, stakeholder or simply as a fan of thinking differently and challenging the status quo, where’s the vision that will define Apple’s next legacy?
In a recent discussion about the future of Apple, I heard something that is becoming all too common these days. “I sold my shares in Apple,” muttered a chief marketing executive of a global spirits brand. He then sighed, “I’m losing my faith.”
In a post-Jobs era of innovation, I, like many others, wonder whether Apple’s current position as the world’s most valuable business has run its course. Yet Apple continues to perform notably hovering close to its 52-week high of $575.14, an impressive 67% stronger than its 52 week low of $385.10. Granted, $575 is generous these days considering its commanding $702.10 price on September 19, 2012. In a recent article in USAToday, Analyst at Brean Capital Frank Longman shared his professional assessment that Apple is “becoming just another stock.” He too believes, “The phenomenon is unwinding.”
Is the Magic Gone?
I guess the answer depends on whether you place your value in historical performance or in futures. Certainly Apple’s recent performance is helping the company recoup billions in market capitalization. And, other analysts are taking notice. Research firm UBS upgraded its position in December 2013 from Neutral to Buy. In October 2013, wealth management and private equity firm Robert W. Baird upgraded its position from Neutral to Outperform.
None of the above changes in status or outlook answer the question though of whether or not Apple’s magic is fading. Financial performance is not enough to restore my faith in the company’s ability to enchant customers and markets. With the passing of Jobs, Apple lost a public leader and a voice for change. He was not only a visionary, he was also a convincing showman, equally captivating customers and investors.
Tim Cook is a proven CEO and was hand-picked by Jobs to helm his juggernaut. Although charming in his own right, Cook is not a gifted showman nor visionary. More so, Cook is not an architect of the future and without the gift of vision and persuasion, he cannot communicate the future of Apple. This missing link is affecting the company’s potential and testing the faith of Apple’s devoted fans. As the world’s highest paid CEO, Cook’s leadership is set to be tested in just a few years.
Why?
