| | | They don't need to be in 1 massive industry
Hard to do, and even if done well, then the stock's fortunes rise and fall based on the normal cycles for that product.
Think of 2 other massive stocks. 2 different models. GE and Berkshire. Organize the company around smaller, more manageable business units or smaller more manageable businesses.
Ultimately that is the direction they will need to go. There are only so many products / services that nearly everyone in the world uses, which is pretty much what the iPhone biz is today. AAPL is so big because if you throw a rock, you are likely to hit an iPhone user. It is that Ubiquitous. It is time to get away from the Jobs version of making a handful of products that dominate. Sooner or later the magic will wear off and they will need something more mundane to pay the bills while they go back to magic school.
As for the quarter, gosh, I don't know what to think. Disappointment to be sure. I wish they had guided lower earlier. I wish they had put more into the capital return to soften the blow. I don't think the results are horrendous, but expectations were not managed well. I don't see the beginning of the end here.
I'd buy more here but I'm maxed out. One account I had too much and it's going to hurt. The other account, it's going to give back all of my energy gains from this quarter. |
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