Skip to comments.Apple clobbers the competition—Commentary: The carnage of Apple’s spectacular success
Posted on 09/24/2010 5:34:41 PM PDT by Swordmaker
NEW YORK (MarketWatch) Apple Inc. is a Death Star. It pulls in most of what comes into its orbit and either overtakes or assimilates it.
The success of the company is particularly spectacular because it is largely a four-product enterprise, consisting of the iPad, iPod, Mac, and iPhone. It also produces a suite of supporting software that includes its OSX, the Safari browser, iTunes, and the App Store. These non-hardware products knit together the iProduct universe.
Apples product line stands in stark contrast to tech giants like Microsoft Corp. (MSFT 24.75, -0.03, -0.10%) , Hewlett-Packard Co. (HPQ 41.02, +0.04, +0.10%) , Oracle Corp. (ORCL 26.96, -0.16, -0.59%) , and Cisco Inc. (CSCO 22.17, +0.08, +0.36%) , all of which have a multitude of product lines that spreads risk and increases sales opportunities. As a result, Apples revenue run rate, is only over $60 billion much smaller than that of Cisco.
Some consumers are wondering whether a tablet like the iPad can replace a laptop for travel purposes. On a recent trip to Paris, Walt Mossberg decided to find out, saying au revoir to his laptop and relying on a tablet and smartphone for work and play.
However, despite the competitions size, Apples market cap is $240 billion, more than those of Oracle and Cisco combined. Perhaps the thing that Wall Street loves most about the company is that it is growing quickly, especially for a company of its size.
The reason behind its growth is simple: Apple clobbers the competition.
Mozillas Firefox browser
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Give it a rest,"swordmaker",we understand that you love Apple and own lots of its stock.
If you want on or off the Mac Ping List, Freepmail me.
The customer base responds to that.
Swordmaker often posts negative articles about Apple.
I love my new iPad! :-)
Only to declare them FUD. He never admits they might be right.
I hear Serious Materials is experiencing phenomenal growth, too.
Not so. Go back and review.
What do you use it for mostly? Does the touchscreen work well? I'm somewhat intrigues by it but I don't need another unused toy laying around.
Trolling, trolling ...
It is so, I’ve seen his cheer-leading for years. All negative articles he or anybody posts he immediately declares FUD. Every single one.
I read a lot of articles, so it’s wonderful being free from a laptop/PC sitting back and relaxing in a nice chair or the couch. Steve Jobs was right about it being just that.
The speed is also very good with the WiFi here at home.
Can you link one of these negative articles that he does not decry as lies or FUD?
Getting any bites?
You are welcome to research. But I can assure you I will not exert the time on your command.
Just got one.
Classic bubble... Lower revenue, lower profits, lower profit margin than Microsoft, yet a higher P/E and valuation. Add in the fact that Apple’s losing market share to Android, after barely breaking into the top 3 in terms of phones, and it’s in a bubble.
Yeah, the Apple fans will come on here and shout me down about how it’s all about profits; but what about Microsoft and Google, both of which have higher profit margins than Apple?
Apple’s really good at marketing their latest iMustHave to their existing customer base, and churning that cash on the same group. But their actual penetration in the smartphone market - or PC/computer market - is virtually unchanged over the years. They’re a bit player in both.