In a time of vast economic downturn and financial instability, not many companies are able to shake-up management, launch high-end technology products, and position themselves as a leader both on, and off Wall Street. With CEO Steve Jobs at the helm, Apple has officially set itself apart from the rest of the floundering tech industry, again.
Not surprisingly, Apple has had the ability to steer clear of disastrous mistakes for the most part. Relying on its brand reputation, customer loyalty, and immensely experienced top-line management, Apple remains focused and headed in the perfectly right direction to make it through the next 16-18 months with relatively little negative effect on the company’s bottom line. With nearly $25 billion in the bank debt free, Apple has the potential to make some very savvy business acquisitions, or investments, while their competitors scramble to stay afloat. It’s a cash market, and even though Apple isn’t divulging any information to its shareholders in terms of plans for the money, most can rest assured that when the right opportunity aligns itself, Apple will make the move. “We’re very comfortable with our cash position… it’s not burning a hole in our pocket,” CEO Steve Jobs recently explained.
Reports of Apple slashing Q4 iPhone production rates have actually boosted confidence in the company’s ability to foresee downturn, ultimately alleviating any doubt in management’s ability to effectively run the company through the next 16 months or so. A recent statement from Apple spokesman Bill Evans to Macworld magazine explained that Apple will not be releasing any new products before the holiday season. While fans who lust over the company’s new products may initially be shocked by the news, shareholders and investors will find relief in the lack of speculation and rumors that may be preventing consumers from making purchasing decisions based on “waiting for the next revision,” of any particular product.
At this point, many companies are deep in transitional lay-off periods, trying to figure out how to break the news to their employees. Dell, as recently as today announced new layoffs. And yet Apple remains incredibly firm, utilizing its most persuasive abilities to lure a chip design genius from IBM. Even though the entire scenario has resulted in an aggravated lawsuit from IBM, the court’s ruling takes place in California, where non-compete contracts tend to mean less-than-average.
Apple continues to do an extremely good job at differentiating itself from the rest of the industry. In stock terms, the company is trading at an incredibly low multiple of 15 times earnings. And that doesn’t only lend way for a complete buy-back in the stock, but its full value is clearly not being recognized by the market, understandably. The iPhone sector of Apple’s business is a prime example of this.
As some have already realized, “The iPhone Revenue Bomb” is a much bigger deal than many had expected. Attempting to analyze and understand the true long-term potential that the iPhone has, can truly be mind-boggling. As the company and product line grows and diversifies, global reach and positioning will increase as well. Apple will continue to add iPhone distribution points, lower the price, introduce new (lower/more expensive) models, and overall cut costs where it can, while making sure that anybody in the world who wants an iPhone, can get one… Cheap, MacBlogz previously explained.
A statement such as “Apple is the best run company in America” may seem too forward, or moreover blunt. But the foundation Apple has set in place lends itself to that of a near perfectly run company, no matter the economic conditions. Arguing that the company doesn’t reveal enough information to its shareholders, regarding any subject, will always remain debatable. Many believe Apple should divulge information about its top-line execs, most importantly CEO Steve Jobs, in which case Apple meets the matter with extremely tight lips. In dancing around such a sensitive subject, many have found that Apple has inevitably set itself up for Steve’s departure from the company. The fact of the matter is that it is inevitable. Steve will retire. But we should all find deep reassurance in knowing that Apple can perform, and will continue to perform with a methodical, level head. And that is what makes Apple the best run company in America.
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9 Comments to “Apple Is The Best Run Company In America”
Don’t forget about their ridiculous ability to make people salivate over products, while their competitors just can’t figure out how they do it.
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It’s run pretty well, I’ll give them that, but it sure hasn’t done anything for it’s stock price. Lots of cash reserve, increased market share, plenty of retail outlets and plenty of employees to keep customers satisfied. Well-engineered, diverse products that are selling relatively well.
Yet, most of this is lost on WS and potential investors. Long-term investors don’t get a thing out of it except the fact that company won’t be closing it’s doors anytime soon. Even though money is flowing back into the market, Apple’s stock price isn’t rising faster than any other stock that doesn’t have nearly the revenue resources of Apple. It gets as beaten up as any stock on a down market day. Apple stock was the first to fall and will probably be the last to rise. Of course, this doesn’t take away from a company that’s doing it’s best to protect itself and it’s employees. It’s just a shame that the world of finance doesn’t see it that way. I know they’ll make it through the recession just fine which is a big relief.
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yes, but over the past 10 years, the stock has increased 1,000%.
Thats a pretty hefty return. while unlikely for this to happen again, they are still set up to go up over the long-term. so who cares about short-term fluctuations, that they “get beaten up as any stock on a down market day”.
And even if they are the last to rise, the question is by how much it will rise
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25 million debt free… nuff said.
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25 Million? I think your mean Billion with a ‘B’. Big Difference.
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Anybody,
Is anyone out there running Solidworks 2008 on apple laptop pro?
I want to switch to
Apple and everyone says it will not run or the video card on Apple
is not good enough. I find that hard to believe.
Help.
Gary
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@ Gary,
Solidworks states that it is only supported on Windows as you can see here: http://www.solidworks.com/sw/support/SystemRequirements.html, but I have read word of people running it with Bootcamp, so I would suggest taking a look into that.
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best run company in America?
I’ll buy that! And I mean that literally! I’ll buy most anything Apple has out there to offer me. Why? Well, it’s not that their product is so outstanding and bug-free (although, in my eyes it is); It’s not that their product design team is the best in the world (although, it really, really is); It’s not that their prices are too hard to beat (ummm…). To me, it simply feels like when I buy an Apple product, it feels like it was made personally for me. It feels like once you have an Apple product that you invested in, a beautiful relationship is about to begin, as opposed to when you buy any competitor’s product, you are only in a relationship with them while you are debating whether or not to buy it, while negotiating the price, or while standing in line to purchase. Once bought, you are on your own.
I don’t know if this is a global consensus among Apple enthusiasts, but I know I am not the only one who feels this way. I hope Apple never loses this edge.
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i completely agree with gilbert; u buy a pc, and kick it to the curb when your done using it, you buy an apple and the whole time you own the machine, your supported by a small diverse community.
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