Monday, January 07, 2013

-- Apple is looking disturbingly like it's being run by MBA's. --


Jobs time has passed and Apple is looking disturbingly like it's being run by MBA's. The Business School "Book" says if one product is good then selling it in ten different varieties is better. Eschewing the buzz and fanfare of big event releases in favor of updates and upgrades pumped into the market every quarter is how to avoid risk and keep the machine cranking. That's the way to drive down supply costs and get the most product into the most hands.

Brian Sozzi, chief equities analyst at NBG Productions is a cautious defender of the new Apple. He's concerned about the lack of apparent sizzle in Apple's hypothetical new products. The bright side is margin. "They're driving a lot of costs out of their system," Sozzi says in the attached clip. "I think that's important."

Cutting costs is important but not for the reasons bulls may think. The very fact of Apple wanting to the focus on margin is a red flag. It's what normal companies do. Flooding the market with a confusing array of the same underlying product is what Sony (SNE) has done for 30 years. That's largely why Sony shares are trading where they were in 1983.

Within the comment section is a jab at Kodak:

It takes more than geniuses - managment must share their vision. Kodak invented the digital camera, but managment's short-term thinking ignored that market and destroyed the company. Apple is on the same path.

**Cross-reference to "60 Minutes" on 6 Jan 2013 of relationship of IDEO's Kelly with Jobs: Global firm IDEO incorporates human behavior into product design -- an innovative approach being taught at Stanford. Charlie Rose profiles the company's founder, David Kelley.


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