Time to Sell Apple

Time to Sell Apple
OpenClipart-Vectors / Pixabay

Innovation and valuation – Apple Inc. AAPL – Macpro imac

I have been back and forth on Apple Inc. (NASDAQ:AAPL) many times in this blog.  One constant theme, however, has been that the company needs to innovate aggressively on all fronts.  With the stock price at record highs and, in my view, innovation at a low point, the risk-return trade off from owning the stock has turned markedly negative.

Apple finally did come clean today and admit that the company dropped the ball on the MacPro, but not until more than three years had passed.  During those three years, the company basically deserted the high-end creative users who relied on Macs and sang their praises.  Though not as long in the tooth as the MacPro, the iMac is long overdue for a major upgrade.  Microsoft’s new Surface Studio far surpasses the iMac.  That’s right Microsoft is making better more innovative computers than Apple!  Even the new Mac books, though beautiful computers, did not break much new ground and Microsoft is gaining in that space too with its Surface Books and Tablets.

WSJ Techlive: IPO, SPAC Or Direct Listing? The Path To Going Public

investThis year has been a record-breaking year for initial public offerings with companies going public via SPAC mergers, direct listings and standard IPOS. At Techlive this week, Jack Cassel of Nasdaq and A.J. Murphy of Standard Industries joined Willem Marx of The Wall Street Journal and Barron's Group to talk about companies and trends in Read More

iPad innovation has also slowed.  The only innovative feature of the model that was introduced last month was the price.

You might say, “who cares,” Apple makes most of its money on the iPhone.  But the iPhone is a computer.  In my opinion, all the products fit together and make up a “computer culture.”  That culture should lead to innovation on all fronts.  At Apple that no longer appears to be the case.

Updated on

Previous article Tribes Divided as Zinke Changes Obama-Era Rule on Mineral Leases
Next article Indonesia Based Companies Pay 12% for the Funds Used to Run Their Business
Bradford Cornell is an emeritus Professor of Financial Economics at the Anderson School of Management at UCLA. Prof. Cornell has taught courses on Applied Corporate Finance, Investment Banking, and Corporate Valuation. He is currently developing a new course on Climate Change, Energy and Finance. Professor Cornell has published more than 125 articles and four books on a wide variety of topics in applied finance. Professor Cornell is also a managing director at BRG where he heads the practice on Climate Change, Energy and Finance. In addition, he is a senior advisor to the Cornell Capital Group and to Rayliant Global Advisors. In both capacities, he provides advice on fundamental investment valuation.

No posts to display