iPad mini won’t help much
has seen better days. The tech giant saw its share drop 20 percent in recent weeks, down to $560 from its all-time high of $705. So, it is no surprise that we are starting to hear from analysts and execs who chose the red pill instead of Apple’s reality distortion field.
In an interview with CNBC on Wednesday, Doubleline Capital CEO Jeff Gundlach said he believes Apple’s share will continue to tumble, before stabilizing at $425 or so. It sounds rather pessimistic, but Gundlach claims he started shorting Apple in April.
“It just seems to me that Apple is an over-believed stock. It’s one of these things where everywhere you go there’s an obsession with it and it seems like every meeting I have, everybody owns it,” he said.
He went on to blast the iPad mini. “I’m really struck by this mini iPad thing. As if that’s any kind of a product innovation. You know, once you start just changing the size of your products, I really think you’re not exactly innovating,” said Gundlach.
Former Apple software engineer Dan Crow also criticized his long time outfit in an interview with The Guardian. He pointed out that Apple is willing to provide its users with a worse experience simply in order to further its corporate interests. This shift in policy was demonstrated in the Apple Maps debacle.
“Apple has serious structural faults. The loss of Steve was devastating – the entire company was built around him and the mistakes we have seen since he left are entirely consistent with a very hierarchical organisation trying to find its way without its leader. I think in hindsight, we will see that Apple’s peak of creativity, innovation and leadership was early 2012,” he said.
The iPad mini could be the needle that finally pops the bubble, although we still believe Apple has what it takes to stay on top. It just needs to go back to its roots, innovate and invest more in research. Playing politics, suing competitors and patenting rounded rectangles won’t help Apple in the long run.