Apple's Quarterly Report

Filed in Uncategorized by on April 20, 2009 0 Comments

Wednesday, April 22 Apple’s Quarterly Report will be announced.

Since the introduction of the iPod and the iPhone, the alleged smarty pants on Wall Street look at Apple’s Quarterly Report as if the Oracle at Delphi was something more than a myth. They understand Apple, like many of the tech companies, doesn’t have any toxic assets nor are they reliant on energy price fluctuations. What they want to see is a strong quarter from Apple. From this they will divine the state of the economy. If the iPhone has sold extremely well, things will seem right to invest in stocks. If not, it will be time to shrink back into the bear cave and wait for better days.

Whether or not Apple’s quarterly report reflects a strong period for the Culpertino company is almost irrelevant. The people on Wall Street haven’t learned anything from the current economic crisis. They are simply out of touch with any normal sense of reality. Their reality is still mired in the poor practices of the past. The US economy got into the mess it is in 

by following a short sighted policy of looking at the strength of a company by how it does quarter to quarter. This forced many managers to focus, or even jury rig, their reports to show quarterly growth. This myopic view led to policies of short term gains at the expense of long term sustainability. A good farmer knows you use each season to reap a bountiful harvest in the fall. Wall St. works differently. They see each season as a year unto itself. That is why our economy is experiencing winter. 

There will be several other tech companies reporting their quarterly reports beside Apple in the coming days. The 24 hour news channels and the rest of the media will over play their importance. The stock market may go up or down depending on how the tea leaves are read. For most of us, it’ll be a non-story. Who cares if Apple’s quarterly reports displays dramatic growth or not? The long term health of the company is more important. The question to ask is, when will Apple use that $25 billion in cash it has? How Apple decides to invest will say more about the future of this economy than whether or not they exceeded someone’s expectations.

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From traditional tips to savvy perspectives, the Frugal Yankee knows how to enjoy life and spend less. Find out more by going to FrugalYankee.com. Be sure to check out Hollywood Breakdown in Gather’s Movie Essential for some smart takes on the film business.

 

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