Why Apple isn't a Blackberry

Alex Pollak

Loftus Peak

There is entirely too much scrutiny on Apple’s quarterly numbers and the fall in iPhone sales. This is not a one-product company, like Nokia or Blackberry, both of which ultimately failed because they couldn’t capture and hold value as it moved away from their admittedly important but narrowly based products. Apple learned that lesson early, choosing instead to build a whole ecosystem of devices (iPad, MacBook, watch, apple TV) with software services (iTunes books, movies, music) right there to keep the cash register ticking over. A case in point is the new 4 inch iPhone, which is not in this quarter's numbers but will be in the next. The car may be next. It may no longer be genius, but it is valuable nevertheless. Telstra has slightly more than half the growth but trades at a 30% PE premium. Of course, that is Australia, so isn't the the whole argument. But global investors continue to be overly concerned about the commoditisation of hardware and may therefore be missing Apple’s big picture, which is more about increasingly diverse revenue streams. (VIEW LINK)


CIO of Loftus Peak, a specialist global fund manager with a track record of successful investment in some of the world's fastest-growing listed businesses.

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