The stock market plummeted in the last few weeks. If you’re invested in Apple stock, you have probably looked at your portfolio and started to cry a little – at least on the inside – just like I have. Things have been complicated by Apple’s recent correction to their projection for the quarter. This correction caused Apple’s stock plummet even more today.

I’m not a business or stock market expert. In fact, I don’t have much knowledge of how any of this works. However, from an outside prespective here are a few things that I think Apple should have done different.

Be Mean

John Gruber makes a great comparison of this correction compared to the last correction Apple had to make in 2002. As Gruber mentions, things were very different back in 2002. The iPod was Apple only, and Steve Jobs was at the helm of the ship.

Jobs wrote 2 paragraphs (you can see what he wrote in the link below) about the correction. He acknowledged the problem and the cause, he confirmed that they had great things in the pipeline, and that was it. He didn’t try to explain too much or make too many excuses.

Cook on the other hand wrote seemed to the opposite.

I like Tim Cook. I think he’s a role model for many people. His temperament is pretty even. I don’t think he needs be fired as many on the internet are calling for. He did need to send a stronger and meaner message.

Even if Jobs were still around I don’t think Apple could get away with a message so short with today’s news. But Cook’s letter was just too long. There was no story to it, no narrative. It should have been something along these lines

John Gruber at daringfireball.net

Cook could have spun a better story with his press release. He could have told the investors and the news that sales were just as strong as ever in the world except for China. He could have mentioned how they have the best line-up of devices anywhere in the world.

Instead, he did like I usually do, and he tried to please. I felt like he didn’t want to rock the boat. He just wanted to put band-aids on the gashes instead of stitching it up.

It’s hard to blame him though. I’m not sure that he’s ever been in a position like this. Plus this is all in hindsight. I’m sure he thought he was doing the right thing at the right time.

Focus on Apple and not the stock

I mentioned the price increased of devices before. Job’s quote about products and making money more than ever has me worried.

I think Apple needs to stay out of the stock news and just focus on making the best products they can. Many of their product decisions seemed motivated by Apple’s stock price instead of the average consumer.

If they are focused on making devices that help bridge a gap just for a stock strategy, then they are no different than any other company.

I think, for the most part, they do focus on the product but they keep an eye on the stock market. They’d be crazy not to. But did they really need to bring out a thousand dollar phone? No. They could have made advancements in the category and still made phones similar to the iPhone XS and XS Max.

The iPhone XS Max is my favorite phone since the 5s probably, but I would have been just as happy with a phone that used aluminum instead of stainless steel. I would have been much happier paying less money than the most money I’ve ever spent on a phone.

If Apple could start focusing on the product and creating that product that no one could resist than they will see an upswing in sales. It’s how they made it as far as they did. But it feels like somewhere along the way they took their eye off of the device and onto the fortune they were amassing.

The Bubble Popped

The smart phone bubble has now popped. There’s no going back now.

I’m going to steal the quote Gruber used as well here. The iPhone was such a great success that it kept outselling itself. There’s no way for that to continue to happen.

In 2009, Apple sold more iPhones than it did in 2007 and 2008 combined. In 2010, Apple sold more iPhones than it did in 2007, 2008, and 2009 combined. Last year, Apple sold 93.1 million iPhones, slightly more than it did in in 2007, 2008, 2009, and 2010 combined. The pattern continued. 

Matt Richman

The bubble had to burst eventually. Apple didn’t really have many markets left to introduce the iPhone to anymore. It is a worldwide product.

I know that they are working on the next big thing (probably AR). I also know that they wish they could bring it out now to help combat the decline in revenue. It’s not the right time.

Now is the time to regroup a little and focus on what they do best – make great products and software. If they do that, Apple’s stock should rise again.

Wrap Up

That’s what I would suggest they do. What do I suggest you do? If you can, I’d be buying some of Apple’s Stock – I’d recommend using Robinhood to trade for free. Apple’s stock will re-bound eventually. No telling how much, but it will.

What do you think? Let me know in the comments, hit me up on Twitter, or Instagram

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