Like Apple, investors must evolve or die
Independent Financial Research
Like Apple, investors must evolve or die. As chief executive Tim Cook himself said 'I think [Nokia] is a reminder to everyone in business that you have to keep innovating and that to not innovate is to die.' How do you value an earnings stream that will have to evolve every few years or die? It's all very well to say that Apple had US$91bn of iPhone sales in 2013, and that the gross margin was 38% and operating margin 29%, but it's safe to say that none of the units it was selling in 2013 will even be on sale in a few years time. The only answer is to try to value the factors that are likely to bring the best new products to market - the creative environment - rather than the products or the earnings streams themselves. (VIEW LINK)
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