I remember writing here back in May of last year about how Apple had lost its way when reports came out that it would offer a $1,000 iPhone.
Apple may have lost touch with the retail market. Sure Apple may be able to sell a $1,000 phone set to the rich and famous, but there are no large-scale buyers out there for a $1,000 unsubsidized model.
That was back in May, before Tim Cook announced that there would be two iPhone models being offered to customers for the holidays.
I wrote at the time: What is wrong with Apple? How do you cannibalize your leading sales product by offering two models? You are not a car company.
I believe Cook’s decision to have two models go head-to-head in the company’s most important sales quarter will go into college marketing programs as the biggest blunder since New Coke.
Well we find out after the close of markets Thursday just how bad that decision was as Apple reports quarterly earnings. Remembering of course that most of Apple’s shares are held by hedge funds and other large institutional investors, so the churn out of the stock will be muted.
The company has been the largest market cap company in the US for two years, but it could relinquish that title Thursday back to Alphabet (Google), which also reports after the close.
Going into today’s trading the market caps of the two tech firms are separated by less than $35 billion, $851.7 billion for Apple and $817.1 billion for Alphabet.