I must respond to your letter. First of all, there are laws of profit and loss that govern all businesses whether they be staid old companies or "different" companies like Apple which is run by "different" types like Jobs. The fact that Apple is a "different" company and Jobs is not your usually CEO isn't worth a farthing.
You mention dividends. I hope you don't expect Apple, if and when it becomes profitable, to announce a dividend. I can see a one time dividend, to show the world that Apple is now profitable but not on a sustained basis. I see, you like Apple, like to take baby steps and hope that life still remains after the 1st baby step. Unfortunately, Apple does not have the time to achieve profitability and then consider its next step. Apple has to increase market share and achieve profitability at the same time. One can expect just so much from the Appleites and so much from belt tightening. Apple cannot expect its die-hards to support it throughout the 2nd and 3rd and 4th quarters. There just isn't enough buying power there. Apple should do the following all at one time: advertise, advertise, advertise, and advertise, cut back on the price of its machines, sell below $1000 computers even if it nets $5 from each. When I think of other things it should do, I will write.
Ed |
