"Tim Cook Style"
indar kumar is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Don’t be surprised if you see long linesand maddening rush in your neighborhood, better still ask your neighbors not to be surprised if they see you in one. This just perfectly defines Apple – Tim Cook style.
Yes, It’s the iPhone season and with much fanfare around the globe Apple (NASDAQ: AAPL) has launched its much awaited iPhone 5. The 4 inch mobile phone was an instant hit as fanatics crowded up stores and lined up in the streets to get their hands on the 5th wonder from the Cupertino, California based technology giant.
Tim Cook was under pressure as he took over from Steve Jobs as the responsibilities were enormous and soon he made everyone realize that he was no “Steve Jobs”, which conversely could be a boon for Apple. The Apple CEO bought quite a few changes to the new phone which includes a bigger display screen, a different charging plug, and its own version of Maps. He has tried to keep it “natural” which has benefitted the product and gave a strong message to the critics. With “Forbes” reporting that its sales could reach well past $850 million, there would be smiles at Wall Street even after NASDAQ tries to guile the Facebook disaster by advocating the $62 million compensation plan.
THE GENX Apple...
It is pleasantly surprising the way Cook is captaining the ship and how his style is catching on not only in the company but also in the outside world. He has improved the rusty supply chain by signing contracts with more than 200 carriers world-wide, raised worker salaries, and introduced a new dividend system which has a copyright of “Tim Cook style” engraved all over it. Talking about the new phone, no doubts honest reviews will come after a few months’ usage but people are now starting to accept Apple products as a part of their lifestyle which ups the company’s status-quo. Apple has also penetrated more markets and is already a cause of headache for competitors like RIM and Samsung. Needless to say it is all set to fight a fierce battle to re-conquer the top spot.
Analyzing the 5th generation phone we come to know that it has chips from Avago technologies and Skyworks Solution. It also has a Qualcomm (NASDAQ: QCOM) chip which is said to support 4g networks in a faster and a better way.The company has become a big winner with its chipsets costing $14-15 per iPhone 4S. This could be huge for Qualcomm as it rides on to the success of Apple in the smartphone market. Apple's recent success will not only help Qualcomm compete better in the chipset market, but it will also not be thinning to its chipset pricing.
The Maps, according to analysts, are a little disappointing as they were inaccurate and underdeveloped. The battery life which was rumored to be improved remained untouched but the weight of the phone did go down due considerably to the aluminum body. The A6 processor makes the device run twice as faster than its predecessor which adds to the joy of the buyer.
Is TIM COOK here to stay??
So, there is undoubtedly lots of “feel good” factor in there. However the big question is, is it just a fad? The answer would be a NO and there are reasons for it.
1. The U.S. economy is having a tough time – Apple brings a smile to its investors.
2. Layoffs make headlines in the local newspapers – Apple increases salaries of their workers.
3. Big time market giants like Blackberry and Nokia on the verge of losing all their market – Apple is one of the major causes.
4. Apple files law suits against Samsung over Intellectual property rights – Wins it.
5. U.S Treasury had $75 billion cash reserves – Apple had $77 billion.
So, considering all these points the industry heavyweight is on the right path steered by a great visionary who has evolutionized if not revolutionized way things work under his reign. He knows hot to please his investors and his consumers alike. He has answered his critics well and is the perfect suitor for the JOB.
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indarkb has no positions in the stocks mentioned above. The Motley Fool owns shares of Apple and Qualcomm. Motley Fool newsletter services recommend Apple. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.If you have questions about this post or the Fool’s blog network, click here for information.