Cook doesn't like Apple's share price, but urges patience

Cook doesn't like Apple's share price, but urges patience

Summary: Apple is still open to sharing its cash pile, but has given investors little insight on how it will address its falling share price.

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Apple chief Tim Cook has told shareholders concerned by the company's falling share price to think about the products it has planned to drive revenue and profits in the longer term.

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iPhone and innovation: Is hardware the only place Apple can go to keep up the buzz?

iPhone and innovation: Is hardware the only place Apple can go to keep up the buzz?

Speculation about the next iteration of the iPhone has already begun - but how many times can Apple reinvent its classic handset?

At Wednesday's annual shareholders' meeting at Apple's Cupertino headquarters, Cook sympathised with investors over the company's share price, which has dropped from September's $705 high to $444.

"I don't like it either. The board doesn't like it. The management team doesn't like it," Cook told investors, Reuters reported.

He urged investors to trust in Apple's record for delivering long-term growth, but offered little insight to the path to take it there, only saying that Apple was "looking at other categories".

While Apple's sales continue to growth, concerns have focussed on whether the iPad is cannibalising Mac sales, how it will tackle China and create new growth opportunities and whether it has the innovative stream to fend off the likes of Samsung.  

Of course, Cook didn't shed any light on the speculated iWatch, but said whatever Apple chose to make would be things it thought were "great to do", All Things D reported.

Another burning issue was whether Apple intends to divvy up more of its $137bn mountain of cash and securities among shareholders. The board was having "very very active" discussions about options for cash sharing, said Cook.

Topics: Apple, Mobility, Smartphones

Liam Tung

About Liam Tung

Liam Tung is an Australian business technology journalist living a few too many Swedish miles north of Stockholm for his liking. He gained a bachelors degree in economics and arts (cultural studies) at Sydney's Macquarie University, but hacked (without Norse or malicious code for that matter) his way into a career as an enterprise tech, security and telecommunications journalist with ZDNet Australia. These days Liam is a full time freelance technology journalist who writes for several publications.

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81 comments
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  • here is the problem

    the share price is falling when the iphone is selling well.
    what happens to aapl stock when the iphone is a "has been" product like the razr turned out to be. it will happen sooner then u think.
    the iphone has a rabid following with certain kinda ppl agreed but.
    it is boring un-inspiring and not cutting edge already.
    while android gets updated at such a rapid pace packing the latest in innovations.
    iphone is a easy to use phone for the grandma and grand pa type
    snoonw
    • Not really

      The RAZR MAXX HD is a better camera away from being Verizon's best phone.

      As for the iPhone, it is already a has been phone but, the public is just starting to realize it now.
      slickjim
      • Already a has been phone...

        The public is realizing something, but it's obviously not that the iPhone is a "has been phone," considering iPhone sales are still growing. What I've seen personally is that two friends who were using Android phones have switched to the iPhone 5 because there is far more cool gadgetry available for the iPhone. They got tired of seeing my iPhone connecting to everything in my house while their phones stayed dormant in their pockets, unable to interact with much of anything.

        Ask yourself: How many stereos have Android docks? How many Bose speaker systems have Android docks? How many clock radios? How many bathroom scales interface directly with Android phones? How many photo printers exist with Android docks? How many quadricopters, tanks, and robots are sold that are controlled by an Android phone? Just browse the Sharper Image or Brookstone web sites and count how many devices are iPhone compatible, compared to how many are Android compatible. I have Airplay on several devices at home, including my home theater system, which all work seamlessly with my iPhone. My car stereo links to my iPhone. I have many pieces of equipment which dock and charge my iPhone.

        Yes, there are phones with better technical specs on paper. None of them have the third party support ecosystem of an iPhone. None are easier to use. None have the same amount of quality applications available. People buy the iPhone universe. They don't just buy the phone. There is far more benefit to owning an iPhone than the phone. The rabid Fandroids just don't get it. If the public is realizing anything, it's that a cheaper Android phone or even an Android phone with better hardware specs, won't give you the same far reaching experience that an iPhone can.
        BillDem
        • Understandable

          as you're in love with the apple ecosystem but everything you said can be achieved on reasonably priced android handsets. The difference is, they promote open standards so I can stream to a whole range of devices designed to work with multiple partners. My phone works with other handsets of a different make. I don't need to be in the apple club for my phone to communicate with friends. We don't need a label stating made for xphone ONLY, that's the difference. Can you transfer photo's by touching phones? Share web pages by touching phones? I'm sure you're answer will be you don't want to, that's what apple tell you at least, but it is handy, I've used it with 3 people in the last 2 days. I have a quadcopter and robot running from my phone. My DSLR can be operated from my phone. My phone bluetooth's to my car stereo and a massively wider range of devices than your ibrick but hey, your small selection works for you.
          It's also rubbish that apple is ahead in 'quality applications', another 'experience' argument from the isheep. No fact or reason, just personal preference that somehow applies to the rest of humanity. I've used istuff, perhaps I can't be indoctrinated as easily?
          You actually sound about 2yrs out of date. Your argument may have been valid back in the dark days of yesteryear but these days the apple ecosystem is nothing special. Android has at least the same options and in most cases more, the reason being, Android users have choices, we don't get our phone maker to tell us how we should run our life. Even WP is catching up with apple in terms of ecosystem, why, because WP didn't need to create a new one, with interoperability, they can just share the space with multiple partners. Just works? Don't they all!
          Little Old Man
          • Physical connectors on docking stations? How 2010. How quaint.

            While apple is stuck in the past, innovative companies are moving to the future. Most speakers are now bluetooth and work with EVERYTHING and don't need fiddly little wires and fiddly little connectors that apple changes arbitrarily every few years, forcing you to buy entirely new sets of peripherals.

            The next big thing (which is NOW if you are using innovative phones like the Nokia Lumia 920) is wireless charging. I no longer need to plug my phone into ANYTHING. I stream bluetooth music in the car, at work, and at home. I put my phone down on the charging pad and it just charges, no quaint physical connections like you are stuck using with the iphone.

            Even better is the combination of bluetooth, NFC, and wireless charging. Again, instead of fiddling with connectors that break and are a hassle to work with, I can simply place my Nokia Lumia 920 on something like the JBL PowerUp speaker, NFC pairs it, bluetooth streams the music, and the Qi wireless standard charges it. That's the NOW of everything except the iphone. Eventually apple will skate to where the puck was a few years earlier.

            BillDem just listed everything that is WRONG with the iphone. Everything he wrote as an advantage is actually a NEGATIVE of the iphone ecosystme. Too funny.
            toddbottom3
          • Airplay

            .
            MarknWill
          • I Agree

            The iPhone's fickle market is getting bored.
            I have had the Nokia 920 just over 3 months and it has not crashed yet.

            If you have not seen PhoneBuff's YouTube videos they are a must see. He hammers a nail into wood with the glass face of the 920, runs it over with his car, and a bunch of other things. Nearly indestructible.

            Apple is good at making shit look good, but underneath it still shit.
            Patrickgood1
          • They're the same glass.

            Apple's is just thinner as I understand it... Heavens knows why, they've had 5 years to realise people drop phones...

            Please please please nobody hammer anything with your 920.. Personally I think the nokia (and htc copies) wp's are the most attractive handsets atm. Then again I have a moto that thought kevlar was a good look... Even the army cover that up!
            MarknWill
          • surprise

            I can pair my iPhone to my car(s) and various gadgets just fine. I can play audio AND video wireless with AirPlay, print wireless etc. (and no, you don't need anything Apple for this -- AirPrint gateways run fine on Windows)

            If I have bluetooth AND AirPlay, why would I need NFC? I don't have to take the iPhone out of my pocket, for it to play FullHD on my home theater system. With NFC, I will have to lay it on the receiver -- away from me -- so that if i want to control the movie somehow, I have to stand up, walk to the place and lift it - at which time it will conveniently drop the NFC connection. Great! :)

            I don't want to subject myself and my family to any more electromagnetic fields than necessary. There are already enough around is. Thus if Apple introduces that kind of wireless charging, I will be the first to avoid it.

            Not everyone shares your values, apparently.
            danbi
          • Re: share photos by touching phones

            Hi :-)

            Why touch the phones, instead of sharing photos via wireless (wifi or bluetooth)? Or Shared Photo Stream?

            Next thing you will tell us, that you can wire two Android phones with one being in USB host mode and the other being the USB device mode and transfer files this way. Surprise, you can do that with the iPhone too -- but no sane person will even imagine doing it.

            It is almost certain, that the application to operate your DSLR remotely was written first for the iPhone then ported to Android and other platforms. This is certainly the case with my DSLR.

            The funny thing is that, exactly because it is too open and you could in theory do everything imaginable -- there are no real *products* to do the things on Android. Nobody invests in Android-phone specific hardware, as in iPhone specific hardware because they just don't know what interface there will be -- every vendor has the freedom to "invent" things. If you are not certain about the interface, you don't write software to support it --- at least not until you have already saturated the iPhone market.
            danbi
          • Re: Why touch the phones

            It's a security measure, to ensure you're communicating with the right device. In fact the bulk of the exchange might occur over Bluetooth, I believe.

            Just another way that Android makes it easy to be secure.
            ldo17
        • Yes they are.

          I cannot tell you how many people I know who stick with the phone due to their contract but, hate it and wish they had their droid back!
          slickjim
        • oh and...

          Anything controlled by Bluetooth usually works with both platforms... As for the docks, why? Use Bluetooth and then you don't have to dock the device, you can carry it.

          Face it, DLNA and Bluetooth make up for the dock connector and Apple's change to the dock makes them awkward.
          slickjim
          • the dock

            You dock your iPhone in order to charge it while it sits there. If you don't need to charge your phone, then don't dock it -- it makes more sense the phone to be in your hands so that you can control it, than sit somewhere on a dock. The iPhone plays anything wireless just fine.
            danbi
        • "cool gadgetry available for the iPhone"

          I love My 8-Tracks and every Saturday I can still find a lot of 'Cool Gadgetry' available for them at Garage Sales throughout my city! I don't think I'll ever to be able to run out of 'Cool New Stuff' to buy!

          I also enjoy having my head up my ass - yes, it's dark and smelly; but, it's warm and, well, it just feels so darn comfortable!
          Mujibahr
  • I almost fell off my chair

    "I don't like it either. The board doesn't like it. The management team doesn't like it," Cook told investors,

    - I almost fell off my chair laughing.... Apple share price is overvalued at least two times. All they have is some iCrap products running iOS and the OSX sales are plummeting. With zero enterprise presence, apple has no long term future with its current silly overpriced iProduct line


    Give the money back to the investors, before its too late.
    Owlll1net
    • Was there an new stock offering?

      Hmmm, I think not:

      When was Apple's initial public offering (IPO)?
      Apple's initial public offering was on December 12, 1980.

      So why would the company give up the cash it's earned to a bunch of investors looking to cash in on a secondary market (for doing nothing for the company I might add). If you were stupid enough to buy the stock at the inflated price, then, well, you were stupid.
      happyharry_z
    • The stock market is like gambling, the house always wins.

      When will people understand that the stock market is nothing more than a different form of gambling, such as in casinos or the lottery. Especially with computerized, rapid trading, the people that control these computers, always win, the same way as the house always wins in Nevada. Stock prices of companies only bear a passing resemblance to the actual performance of their business success. The moneybags have driven Apple's stock up sky high, sell it at those inflated prices, and make a huge pile of money. Now the Apple stock has dropped to a more realistic price and the manipulation cycle can begin again.
      arminw
      • Re: The stock market is like gambling

        With one important difference: if you find something you can do to improve your odds in a casino, they accuse you of "cheating" and throw you out. But in the stock market, you get rich and everybody looks at you with wonder and asks you how you do it.
        ldo17
    • @Owlll1net...what is wrong with your head???

      I hope you didn't give yourself whiplash in the process of laughing too hard. You can always tell the poor quality of the review or answer given here as it has nothng but angst aimed at a company for something that is personal to you. Every post you make is emotionally motivated, which inevitably leads to your poor responses.

      Apple have been the distance for as long as your beloved Microsoft and, I get the impression that they're going to be here a lot longer than your posts.

      Here's a couple of bits of advice for you...

      1st - You've got two ears and two eyes...but only one mouth

      2nd - Why don't you get off the cross, someone else needs the wood. Stop being a martyr to the cause, last time I looked, Microsoft didn't need your help.
      Jackie-Smith