Linked by Thom Holwerda on Fri 23rd Mar 2012 15:09 UTC
PDAs, Cellphones, Wireless I'm currently reading Jerry Kaplan's excellent book "Startup: a Silicon Valley adventure". In this book, Kaplan, founder and CEO of GO Corp., details the founding, financing and eventual demise of his highly innovative company, including the development and workings of their product. What's so surprising about this book is just how timeless it really is - the names and products may have changed, but the business practices and company attitudes surely haven't.
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You don't call that a distortion of reality? A company with a MARKET CAP is bigger than entire sectors of the economy.

Do you know what a P/E ratio is? That is price to earning ratio. Apple's is low - if you adjust their stock price based on the average P/E in their sector their stock price goes UP... Most investors consider their stock to be undervalued.

The next you'll tell me is that housing bubbles or credit bubbles are evidences of real value. That the Dot Com bust never happened.

Economic Bubble ( An economic bubble occurs when speculation in a commodity causes the price to increase, thus producing more speculation. The price of the good then reaches absurd levels and the bubble is usually followed by a sudden drop in prices, known as a crash.

Apple's stock price has absolutely no relationship to a bubble. It grew fairly smoothly over over the last 10 years - in fact Apple's stock price growth trailed their profit growth by quite a bit most of the time. The dotcom bubble was investors throwing absurd amounts of money at stocks with no real positive profit outlook - Apple is remarkably profitable. If you think Apple's stock price is a bubble you have no idea what a bubble is. Apple is simply extraordinarily profitable - there is no denying this - their market cap is a reflection of this, it isn't inflated by speculation.

When people start making arguments based on market cap and share prices and not real economic value - sorry, but you've just deceived yourself. You further prove that people willingly buy into propaganda.

Please, define "real economic value"...

They cornered the media device market. iPod. iPad. They were doing all right with their Macbooks and iMacs. But they really have cornered the market that netbooks used to be aiming for - portable but reasonably useful computing.

You may have some argument with iPod, but only to the point that their competition there is weak financially (because they already killed most of the big names off)..

iPads? Everyone and their brother makes tablets, and quite a few of the competitors in that market have very big pocketbooks...

Netbooks? How can you say something like "they really have cornered the market that netbooks used to be aiming for" - Everyone is competing in this space. How do they have the market cornered?

What do you mean "so what?" People here were making the argument that Apple is special in a way that wasn't due to marketing (and hence psychology). I was countering those arguments. Did you not think there were other people commenting on this article?

No - they were giving rationales of why they believe Apple products are good. You were denouncing their reasons and dismissing them all on the basis that it is pure "psychology" - as if they are all brain washed. My point is that sure, Apple markets themselves and creates a brand image - but so does everyone else. You could just as easily apply your argument against ANY company. But Apple is worth over $500 billion dollars - and you say they "are just like any other company". Sorry, but they most certainly are NOT - that is just plainly obvious.

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