Every time Apple’s no longer new CEO opens his mouth, the stock goes down. (Full disclosure: I own the stinkin’ stock!)
Cook took over the world’s most respected high tech franchise for the iconic Steve Jobs a year-and-a half ago. After riding a residual crest of post-Jobs approval, the new CEO has presided, shockingly, over the dismantling of the Apple reputation and the crumbling of the Apple stock.
How did this happen?
Was it inferior products? No, Apple’s products are still the envy of the world.
Was it inferior service? No, Apple’s stores and personnel are still the model of enthusiastic competence and professionalism.
Was it increased competition? Not really. Sure competition has increased – especially from the Samsung Galaxy SIII phone – but Apple is still the dominant force in a market that has ample room to grow, particularly in China and India.
Was it an inflated stock price? Again, not really. Apple’s price/earnings ratio – which generally measures the market’s “valuation” of a company -- is a paltry 10, compared to Google’s 24, IBM’s 14, or General Electric’s 17. Even the hopeless Dell has been awarded a 9 P/E by the market.
So what has caused Apple’s stock to tumble?
Two words: Public relations.
Apple, one of the greatest marketing companies of all time, has never been known for good public relations...