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

Apple Has Fallen and It Can't Get Up

NEW YORK ( TheStreet) -- On Tuesday Apple (AAPL - Get Report) introduced the iPhone 5S and 5C. We learned from the much anticipated announcement the iPhone 5C would be a cheap, plastic iPhone in five colors.

That's it? What happened to "Apple the Innovator?"

Remember when a product announcement would compel customers to sleep outside their neighborhood Best Buy? Yesterday, Apple shares fell 2% and are down today over 5%.. The company has lost half of its value since the death of its founder in the autumn of 2011.

When Steve Jobs passed away, some analysts wondered, "Will Apple ever produce another breakthrough product?" At the time, I was convinced that it would. Apple was consistently one of the three most desirable employers for MBA graduates. Certainly, the best minds in America could carry on. But so far they have not. Apple's market share has fallen from 24% in 2011 to 14% the last quarter. It continues to weaken. Today's Apple is very different.

For the past decade, management theorists examining Apple's management practices have scratched their heads. How could a tyrannical CEO build the wealthiest and most respected company on earth? In these "enlightened" times, we expect a CEO to be "first among peers" when leading an executive team. We believe in consensus management and expect that innovative companies produce new ideas like thousand flowers blooming across the corporation. The Apple story just did not make sense.

But a recent interview with Larry Ellison, CEO of Oracle (ORCL) and close friend of Steve Jobs, provided valuable insight. Ellison called Jobs, "The Thomas Edison of our times." Jobs' vision and creativity far surpassed his executives. Why should he try to get others to join along? One wonders if Thomas Edison used committees and consensus.

It is easy to identify a committee-designed proposal. It's a fat and unfocused patchwork quilt. Look at Obamacare. As of today, it is 10,516 pages, or eight times longer than the Bible. It was written to appease everybody. But it's unlikely to ever achieve its objectives of access, quality and cost. A simple, clean proposal by a small, interdisciplinary team could have easily produced a far better result.
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 $93.24 -0.41%
FB $117.81 -0.21%
GOOG $701.43 0.82%
TSLA $211.53 -4.96%
YHOO $36.94 2.61%


Chart of I:DJI
DOW 17,660.71 +9.45 0.05%
S&P 500 2,050.63 -0.49 -0.02%
NASDAQ 4,717.0940 -8.5450 -0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs