Betting against Apple is just dumb.
Time and time again, we’ve seen the competition speak out against Apple, what they’re doing, or what they might be doing next. We’ve heard these Wall Street analysts tell the public to “sell, sell, sell” their stock because it has hit a ceiling or on the verge of tanking. Quarter 4 of 2014 was Apple’s largest quarter of profit ever. It was the largest quarter of profit for any company.
Former CEO of GM, Dan Akerson spoke out against Apple building a car. Right now, Apple building a car is just a rumor. Maybe they are, maybe they aren’t. But here’s what he had to say:
I think somebody is kind of trying to cough up a hairball here. If I were an Apple shareholder, I wouldn’t be very happy. I would be highly suspect of the long-term prospect of getting into a low-margin, heavy-manufacturing. A lot of people who don’t ever operate in it don’t understand and have a tendency to underestimate. They’d better think carefully if they want to get into the hard-core manufacturing. We take steel, raw steel, and turn it into car. They have no idea what they’re getting into if they get into that.
What Akerson doesn’t seem to realize is this: this is Apple.
What they do, they succeed in. They enter markets and disrupt. Music players? Dominated. Smartphones? Dominated. Tablets? Dominated. Watches? Oh, just wait.
If Apple is making a car, they’ve been working on it for years now. That iPhone 6 you’re probably using or know a friend that owns one? They built that in 2011. Apple doesn’t just throw money at new markets and build things, then ship them. They take the time, hire the right people, and refine. Again and again. Perhaps that’s one of the reasons they’re worth over $700 billion.
Akerson is scared. His comments reflect this as if, somehow he can persuade Apple to change course. What I’ve seen over the years is once a rumor about Apple building a new product is out, change is coming.
You can’t stop it, but you can adjust for it.