{"id":8540,"date":"2019-05-14T07:06:26","date_gmt":"2019-05-14T06:06:26","guid":{"rendered":"https:\/\/www.wasteyourtime.co\/?p=8540"},"modified":"2019-09-06T11:45:18","modified_gmt":"2019-09-06T10:45:18","slug":"apple-not-tech-company","status":"publish","type":"post","link":"https:\/\/traders-paradise.com\/magazine\/2019\/05\/apple-not-tech-company\/","title":{"rendered":"Apple Is Not a Tech Company Anymore"},"content":{"rendered":"<h2><\/h2>\n<p style=\"text-align: right;\"><i><span style=\"font-weight: 400;\">2 min read<\/span><\/i><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8541\" src=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore.jpg\" alt=\"Apple Is Not a Tech Company Anymore\" width=\"800\" height=\"500\" srcset=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore.jpg 800w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-300x188.jpg 300w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-768x480.jpg 768w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-370x231.jpg 370w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-760x475.jpg 760w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-424x265.jpg 424w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><em>by Gorica Gligorijevic<\/em><\/p>\n<p><span style=\"font-weight: 400;\">The logic behind is: If Apple is high-tech Warren Buffett wouldn&#8217;t invest. Since he or his Barclay Hathaway is the major investor in the iPhone and Apple is producing iPhones for the customers, Apple is a consumer products company. Period! <\/span><\/p>\n<p><span style=\"font-weight: 400;\">I&#8217;m not a postman. I&#8217;m a post-delivery specialist.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If Tim Cook, the Apple chief executive, needs some mantra to keep going, it&#8217;s okay. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">To keep going what? Cook is on his way to persuade Wall Street in that.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apple has to solve that puzzle. It is or it isn&#8217;t a high-tech company. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u201cWe believe that technology should be in the background, not the foreground, and that technology should empower people to do things and help them do things they couldn\u2019t do otherwise,\u201d said Cook, after Berkshire shareholders meeting in Omaha, Nebraska.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, Apple has been absorbed into the Silicon Valley swamp, without its willingness. C&#8217;mon!<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-8542 alignleft\" src=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-2.jpg\" alt=\"Apple Is Not a Tech Company Anymore 1\" width=\"275\" height=\"183\" \/><br \/>\n&nbsp;<br \/>\n&nbsp;<br \/>\n&nbsp;<br \/>\n&nbsp;<br \/>\n&nbsp;<br \/>\n&nbsp;<br \/>\n&nbsp;<br \/>\n&nbsp;<\/p>\n<blockquote><p><strong>Well, when Cook was asked by CNBC about Warren Buffett&#8217;s rising investment in Apple, Cook shot the Silicon Valley. <\/strong><\/p><\/blockquote>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_74 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><ul class='ez-toc-list-level-6' ><li class='ez-toc-heading-level-6'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/05\/apple-not-tech-company\/#Tim_Cook_Apple_CEO\" >Tim Cook, Apple CEO<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/05\/apple-not-tech-company\/#It_looks_the_Apple_is_in_hot_water\" >It looks the Apple is in hot water.<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/05\/apple-not-tech-company\/#Facebook_and_its_users_have_a_major_influence_on_Cupertino\" >Facebook and its users have a major influence on Cupertino.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/traders-paradise.com\/magazine\/2019\/05\/apple-not-tech-company\/#Apple_needs_to_shift_its_business_from_hardware_to_software_in_order_to_satisfy_investors\" >Apple needs to shift its business from hardware to software in order to satisfy investors.<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h6><span class=\"ez-toc-section\" id=\"Tim_Cook_Apple_CEO\"><\/span>Tim Cook, Apple CEO<span class=\"ez-toc-section-end\"><\/span><\/h6>\n<p><span style=\"font-weight: 400;\">He said: &#8220;(Buffett) has been very clear. He didn&#8217;t invest in technology companies and companies he didn&#8217;t <\/span><span style=\"font-weight: 400;\">understand. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">He&#8217;s been totally clear with that. And so he obviously views Apple as a consumer company.&#8221;<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He should bite his lip.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Because we all know the old proverb: At the end of the day, money talks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It&#8217;s not rocket science to find what really is hiding behind these words.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Put the logic aside, but the statement is right.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"It_looks_the_Apple_is_in_hot_water\"><\/span><strong>It looks the Apple is in hot water.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Let the cat out of the bag.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It isn&#8217;t a secret that many companies cannot meet <a href=\"https:\/\/eugdpr.org\/\">the new EU legislation<\/a> (GDPR) to guard individual privacy. Or they are struggling with them.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Big tech companies are under attack. The regulators in the EU demand severe new legislation to protect privacy. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">That crashed tech&#8217;s attempts to use the user data in a dishonest way.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They have to create new business standards.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The General Data Protection Regulation became law everywhere in the EU last year. It means every company is obliged to receive permission before gathering any data online.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cook adored the new EU regulation last year. He has been one of the most vociferous proponents of new regulations. It isn&#8217;t a wonder. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">&#8220;We\u2019re in the tech industry,\u201d Cook admitted. \u201cBut we work at that intersection of technology and the liberal arts and the humanities. And so we make products for people, and so the consumer\u2019s at the center of what we do.\u201d<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Facebook_and_its_users_have_a_major_influence_on_Cupertino\"><\/span><strong>Facebook and its users have a major influence on Cupertino.<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-8546\" src=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-3.jpg\" alt=\"Apple Is Not a Tech Company Anymore 2\" width=\"800\" height=\"533\" srcset=\"https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-3.jpg 800w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-3-300x200.jpg 300w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-3-768x512.jpg 768w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-3-370x247.jpg 370w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-3-760x506.jpg 760w, https:\/\/traders-paradise.com\/magazine\/wp-content\/uploads\/2019\/05\/apple-is-not-a-tech-company-anymore-3-424x282.jpg 424w\" sizes=\"auto, (max-width: 800px) 100vw, 800px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Facebook is at the end of iPhones software.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apple gets practically all of its earnings by selling iPhones. They are developing the hardware in Cupertino and write the codes. But Facebook&#8217;s apps Instagram, Messenger, and WhatsApp are the most popular iOS downloads. So, Facebook is entered on the software end. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Wall Street Journal published the social media titan is in communications with Mastercard, Visa, and First Data Corp. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">What is it all about?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is all about a payments system. The aim is to modify Facebook features into a living ecosystem. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, what one could ask?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This arrangement could make physical hardware trivial.<\/span><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Apple_needs_to_shift_its_business_from_hardware_to_software_in_order_to_satisfy_investors\"><\/span><span style=\"font-weight: 400;\">Apple needs to shift its business from hardware to software in order to satisfy investors.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><span style=\"font-weight: 400;\"> At first place Buffett.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">They have to venture other market forms and rebrand.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But still, as it matches even more engaged inside our gadgets, can Apple honestly pretend to be anything else than a high-tech company?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite this strange high-heavy separation, Cook has to persuade Wall Street that Apple is remodeled.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The iPhone is a high margin sales. And it is a low margin business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If Cook manages to rebrand Apple as a consumer products company, the prizes would be amazingly large.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Apple shares <a href=\"https:\/\/traders-paradise.com\/recommends\/financial-markets-important-guide\">trade<\/a> at a 17.47 multiple of trailing earnings. The P\/E ratio is 20.07.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Best consumer products companies like Procter &amp; Gamble and Colgate Palmolive get multiples closer to 25. If Apple traded at an alike P\/E the stock would bring $296. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">For now, Apple is a puzzle. It is a famous franchise. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">We all love their goods. But we have to say, the iPhone isn&#8217;t growth.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">People love Apple products. But the iPhone is no longer a growth industry, because, at the same time, we want fresh gadgets. And cheaper too.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Moreover, we think even if Apple stays as high-tech company Warren Buffett will not step out.<\/span><\/p>\n<p><span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/traders-paradise.com\/magazine\/2018\/07\/money-risk-trading\"><b>risk disclosure<\/b><\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>2 min read by Gorica Gligorijevic The logic behind is: If Apple is high-tech Warren Buffett wouldn&#8217;t invest. Since he or his Barclay Hathaway is the major investor in the iPhone and Apple is producing iPhones for the customers, Apple is a consumer products company. Period! I&#8217;m not a postman. I&#8217;m a post-delivery specialist. If [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":8549,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[1004,1011],"tags":[400,472,115,964,965],"class_list":["post-8540","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-financial-news","category-hi-tech-news","tag-apple","tag-buffet","tag-facebook","tag-gdpr","tag-tim-cook"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Apple Is Not a Tech Company Anymore. This is the new mantra.<\/title>\n<meta name=\"description\" content=\"Apple needs to shift its business from hardware to software in order to satisfy investors. 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