Apple's Tim Cook: "This is not a hobby."

Share On Facebook
share on Linkedin

It’s early in the trading day on the NASDAQ, but it is beginning to appear that investors are going to be regaining confidence in Apple (NASDAQ:AAPL) following CEO Tim Cook’s address at the annual BoxWorks conference. Apple shares have gained 1.16% in the opening half hour of trading amidst a flurry of trading of nearly 10.4 million shares. If sustained, that pace would see Apple share transactions well beyond the norm.


When he said that, “This is not a hobby,” Cook was referring to Apple’s newest focus on enterprise software for business. The statement may have contained a wee bit of sarcasm as so many people have bought into the perspective that Apple manufactures computers for avocational use. This idea comes from the predominance of other systems being used by businesses, while Apple products have been more consumer oriented.

“We haven’t even started yet.”

Cook offered another key statement reminiscent of the 1970’s Carpenter’s hit, “We’ve Only Just Begin.” His exact statement was “We haven’t even started yet.” He was, of course, making reference to the subject at hand, which became the subject at hand once the company had announced that its enterprise sales for the last fiscal year had reached $25 billion, accounting for roughly 14% of the company’s entire sales revenue. By comparison, Microsoft (NASDAQ:MSFT) had a total revenue of $93.6 billion. Apple’s total revenue for the twelve months was $224.3 billion.

In the Beginning

Cook praised IBM and Cisco for partnering with them for more effective product development and interfaced productivity. He reminded those in attendance that, “If you think back in time, Apple and IBM were foes. Apple and Microsoft were foes. But if … Microsoft and Apple can work on more things together, it is great for our customers.”

When the first Macintosh was marketed in 1984, many business plucked them up. The WYSIWYG concept was new – and unfamiliar – to most business owners. Although many saw some potential in the Mac, it was outside of their comfort zone as they understood business computers. Of course, competitors like Cisco (NASDAQ:CSCO) and IBM (NYSE:IBM) fought hard to reinforce the need for their accepted, entrenched products.

Apple saw an opportunity to achieve long-term success by introducing their products to school systems for use by students. The strategy was to have graduates more comfortable with the Mac than with the much less user friendly Linux and Microsoft-based systems. Although brilliant, the strategy failed. By the time Mac-friendly students became entry level employees, Apple’s competitors were the darlings of the business universe. Even a growing army of entry level employees did not have the power to convert the “wiser” decision makers at the top. (In many cases, they were wiser, not only by position, but because they often received incentives to make the “right” choice.)

Because of its ease of use, however, Apple became the system and PC of preference, at least for a few years, at the consumer level. Introduction of other peripherals, such as the iPod and the iPad, just added to the perception.

In the Here and Now

Apple understands two very important strategic issues that, combined, go against the grain of conventional thinking, but that, this time, may prove to set the table for its dominance of the evolving computer market.

  1. The future is mobile. Most agree.
  2. Mobile and sit-down systems must be separate. Most can’t see what Apple sees.

Apple continues to see the need for a continuum of experience, but not a need for both experiences to merge if that means there is a compromise to make.”

Apple does not believe that Microsoft’s unified Windows approach can optimize for both PC and mobile platforms. Cook explained, “We don’t believe in having one operating system for PC and mobile. We think it subtracts from both, and you don’t get the best experience from either. We’re very much focused on two.”

Investors seem to be convince that Cook is right. Shares are now up 2.02% in late morning trading with 20 million shares in play.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch:

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20211027 14:32:25