I don't hold Apple stock, but it's a hugely successful company and I admire success anywhere.
If I were an Apple investor though, I'd be a little worried.
Why?
Well I've noticed Apple is filing more lawsuits and - perhaps consequently - increasingly becoming a target itself.
I've taken a look at Apple's 10-K for its fiscal year ended September 2009. There are eight pages of lawsuits, and the list is about to get longer with Apple's latest salvo against Taiwanese company HTC. Some analysts have described this lawsuit as an "indirect" shot at Google, since HTC is a major partner with Google on the Android smartphone system.
No matter how big and successful a company is, lawsuits are always bad news. They distract management and even employees.
I know when you're at the top everyone's gunning for you. But Apple could become so mired in all these lawsuits that it starts to lose its focus, and it's "magical" edge. And if Apple loses its edge, it will become rotten. Maybe I'm wrong.
Showing posts with label Apple. Show all posts
Showing posts with label Apple. Show all posts
Wednesday, March 03, 2010
Wednesday, May 13, 2009
Apple’s Excellent Customer Service Makes the Stock a Buy
I don’t have any Apple (AAPL) products yet, not even a "Pod". However, I do use iTunes, but that’s not a product, it’s a service.
Anyway, last week I had an issue with purchasing iTunes gift certificates online. Although there was no helpdesk number to call – something that’s now common practice with companies – I did get to “chat” online with a customer service rep who promised to follow up through email…and actually did!
Not only was there a follow-up email, dude went back and forth with me on email until he confirmed I was satisfied with the problem’s resolution. I thought to myself, that’s what customer service is.
Now, AAPL does make cool products, but I don’t think that’s the sole reason for the company’s success. Excellent customer service has to be part of the reason.
I know what you’re thinking. Maybe the dude who attended to me had just reunited with his high-school sweetheart. Nah. I think great customer service is just how AAPL rolls; it’s part of their mojo.
I’ve been in their store many times and “test-driven” like 10 different Pods and Macs without buying a thing, and none of their people gave me as much as a “beat it” look.
Look, if you want to know how well or awful a company is run, just experience its customer service. And Wall Street knows this. That's why the stocks of well managed companies often command a premium in the market. Just compare the price/earnings (P/E) ratio of AAPL with those of its competitors.
Costco (COST) is another company that enjoys a higher premium than its competitors partly because Wall Street believes it's better managed.
I have thought about buying some AAPL (no pun intended), but my portfolio is already tech heavy – it’s 18% weighted in tech versus S&P 500’s 15%.
Furthermore, I am not a fan of “hardware” tech stocks, because they are more susceptible to commodity prices than their “software” counterparts are. This doesn’t mean I won’t buy or use AAPL products though.
If you’re looking to get into a tech stock you should consider AAPL. I admit customer service is a crude way to decide whether to invest in a stock, but it seems to be an accurate predictor of a long-term moneymaker.
When deciding whether to get into a stock, some investors look at fundamentals, others look at technicals. Now you can go one up on them by also looking at customer service.
Anyway, last week I had an issue with purchasing iTunes gift certificates online. Although there was no helpdesk number to call – something that’s now common practice with companies – I did get to “chat” online with a customer service rep who promised to follow up through email…and actually did!
Not only was there a follow-up email, dude went back and forth with me on email until he confirmed I was satisfied with the problem’s resolution. I thought to myself, that’s what customer service is.
Now, AAPL does make cool products, but I don’t think that’s the sole reason for the company’s success. Excellent customer service has to be part of the reason.
I know what you’re thinking. Maybe the dude who attended to me had just reunited with his high-school sweetheart. Nah. I think great customer service is just how AAPL rolls; it’s part of their mojo.
I’ve been in their store many times and “test-driven” like 10 different Pods and Macs without buying a thing, and none of their people gave me as much as a “beat it” look.
Look, if you want to know how well or awful a company is run, just experience its customer service. And Wall Street knows this. That's why the stocks of well managed companies often command a premium in the market. Just compare the price/earnings (P/E) ratio of AAPL with those of its competitors.
Costco (COST) is another company that enjoys a higher premium than its competitors partly because Wall Street believes it's better managed.
I have thought about buying some AAPL (no pun intended), but my portfolio is already tech heavy – it’s 18% weighted in tech versus S&P 500’s 15%.
Furthermore, I am not a fan of “hardware” tech stocks, because they are more susceptible to commodity prices than their “software” counterparts are. This doesn’t mean I won’t buy or use AAPL products though.
If you’re looking to get into a tech stock you should consider AAPL. I admit customer service is a crude way to decide whether to invest in a stock, but it seems to be an accurate predictor of a long-term moneymaker.
When deciding whether to get into a stock, some investors look at fundamentals, others look at technicals. Now you can go one up on them by also looking at customer service.
Subscribe to:
Posts (Atom)