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

What the Hell Is Happening at Apple?

NEW YORK ( TheStreet) -- Don't worry. I'm not pulling a Business Insider hack job with a wildly provocative title only to leave you with a two-sentence cut-and-paste of somebody else's work and a promise to "update" it "soon."

To ask What the Hell Is Happening at Apple? puts it mildly.

You have read me right over the past several days. Tim Cook's power play at Apple ( AAPL - Get Report ) does make me feel a bit better about him as CEO, but it doesn't erase long-term doubts.

You can call that riding both sides of the fence; I call it understanding and respecting the complexity of the situation.

Everybody loves an easy answer. That's probably why so many people ate up The Wall Street Journal report that Cook fired Scott Forstall because he refused to sign Cook's embarrassing Google ( GOOG ) Maps apology letter.

That's crap.

If anything, that might have been the straw that broke the camel's back, but it's a simple and probably wholly inaccurate way to frame a complicated, yet simultaneously straightforward situation.

Lots of people didn't like Forstall. At some level, Cook probably felt threatened by him. MappleGate gave Cook more than he needed to make the move.

What happened, however, raises as many questions as it does accolades for Cook.

Ultimately, much of what led to Forstall's demise falls on Cook in one way or another. In some fashion, he was asleep at the wheel, plus he has to protect his own job. That's a concern, along with, in no particular order:
  • The dividend/buyback decision.
  • Weaker than weak Genius ads pulled shortly after airing.
  • The errant decision by John Browett (also fired) to reshuffle retail staff hours and almost immediate reversal and apology.
  • Though I disagree with it because of the premium price point, criticism over doing an iPad mini warrants attention.
  • What amounts to an iTV stalemate. It looks as if Cook has no idea how to move with forward with Apple TV.

I'm probably forgetting something, but you catch my drift.

Under Steve Jobs, Apple was a well-oiled machine. Certainly, all heck might have been breaking loose from time to time, behind the scenes, but you rarely got that sense with Jobs at CEO.

Maybe that was just the power of his reality distortion field, but that's neither here nor there. It worked.

Apple was a steel trap that hummed along without a hitch. That's obviously no longer the case. This makes the company look less like Apple and more like its inferior competition.
1 of 2

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 $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs