I don't know how many people saw this article by Arne Alsin over at TheStreet dot com -
Apple's Scraping the Bottom of the Barrel. Arne's ranting on about how investors should dump or avoid
Apple. Most of the article is an attempt at justifying his own analysis. I think he is way off.
Arne says "
Don't tell me about the dazzling products that Apple introduces from time to time. Because I'll agree with you -- they can be impressive." and "
Successful investors don't invest in cool products, though -- they invest in profits.". O.K. But Apple seems to be not only leading but defining the portable music player market with the
iPod. While it may be far from perfect
iTunes seems to be the premier site for downloading music. I don't know what circles Arne travels in but I see more and more Apple computers (many running OS X) in the hands of young people at colleges and universities, and in airports. It looks to me like Apple is shaping what the next couple of generations of consumers are going to consider buying.
He goes on to rant about the business model over at Apple. "
It's safe to say that the business model at Apple is terminally flawed. ". I think he's wrong again in that Apple isn't Windows. You can't (shouldn't) directly compare the Windows PC and the Apple computer market. They are not the same.
As to the balance sheet Arne seems to be saying that Apple's sales are lower now than three, five or ten years ago. The problem I've got with this is that 5 and ten years ago Apple didn't make iPods. The revenue model (specifically what products that Apple sold) was totally different. It would seem given Arne's logic that Microsoft will have to sell ever more expensive software in order to have a positive balance sheet. Hey, wait a minute...
The article closes by blasting Apple's retail stores. O.K. In the grand scheme of things the Apple stores are a kind of oddity. But Aren, have you been to an Apple store? They are different. They do totally showcase the Apple product line and in addition show just about every add on product and book. The stores are helping Apple tell their corporate story.