Published On: Wed, Jun 5th, 2013

The Apple Strategy

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Although I’m not an Apple shareholder, I don’t think Apple should try to conform to a stock market that is played like a casino. It’s the stock market that needs to be reformed, not Apple’s financial model. Any company can sell lots of low-cost products and quickly grab market share. I don’t think that’s in consumers’ best interest nor do I think that sort of business model is sustainable. Eventually, Apple’s growth will slow but that shouldn’t make the company any less valuable.

Apple needs to think long-term in holding market share and steady, even if slow growth. Apple’s shares are down but that’s because the hedge funds are always playing musical chairs with companies. Hedge funds have no long-term interest in companies. A stock market driven completely by greed is bad for the economy. It only caters to the already rich investors and not the mom and pop investors.

I think Apple should continue on with its business model. If the company doesn’t want to pursue high market share numbers, that’s fine by me. Shareholders will just have to be satisfied with increased Apple dividends if not a rapidly climbing share price.

About the author: Zohaib is former CEO of Nadia Textiles and currently a franchisee for Pearl Continental Catering in Lahore and investor-founder of several B-corporations, notably Uth Oye.

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