This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New Apple CEO Begins With Rare Stumble for Company

But Cook is now in a tougher position than he was before and, as a result, so is Apple. There was concern over how well Cook would come across on stage after consumers have grown accustomed to the way Jobs unveiled products with passion and hyperbole. Jobs famously used adjectives like "magical" and "revolutionary" to introduce the original iPad.

With expectations running high, Cook was forced to go on stage and sell people on essentially the same phone they already have. This was a critical presentation where Cook needed to establish himself as head of the most innovative company in the world. After a three-month delay, he should've come armed to the teeth with surprises from Apple, not a half-step improvement to the iPhone 4.

Channing Smith, portfolio manager of the Capital Advisors Growth Fund (CIAOX), counts Apple as one of his largest holdings and has been a strong backer of the company. Yet, Smith uses words like "underwhelmed" and "lackluster" when talking about the iPhone 4S unveiling.

"Investors have become accustomed to this new innovative technology every time Apple has an announcement," he says. "We're accustomed to seeing something that knocks your socks off, so it's somewhat disappointing. But expectations may be getting a little unrealistic."

Those expectations exist, though, because of the culture Jobs created. Under Jobs, Apple operated in secrecy, taking the opportunity at big events to promote new products like the iPhone, iPad and iPod. Jobs helped cultivate a cult following that enjoys speculating for weeks and months leading up to product launches. Unfortunately for Cook and the rest of the Apple team, it's an environment they must now operate in.

Smith says investors have become impatient and they lose track of the fact that Apple continues to deliver innovative products. "Their technological lead on everyone else continues to be very wide, so going into the holiday season, we see a real lack of competition," he says. "That's going to create a very good setup for Apple's earnings going into the holiday season."
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
AMZN $502.13 0.00%
GOOG $683.57 0.00%
FB $104.07 0.00%
TSLA $162.60 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs