Photo: By Justin Sullivan/Getty Images
Apple shares are more than 36 per cent off their 52-week high of $705/share, down to $447/share following last week’s quarterly earnings miss.This sharp decline has suddenly made Apple no longer the world’s most valuable company.
Perhaps confusingly, this is all happening as Apple posts the biggest profits of any non-oil company ever.
What’s happening is: Apple’s business, powered by the incredible growth and profitability of the iPhone, has reached a summit, and, while it is still growing, it is growing at a slower pace than it used to.
Since stock prices are a reflection of where Apple is going, not where it is or where it has come from, Apple’s stock price is going down.
Naturally, this very-good-and-very-bad moment has sown some turmoil in the ranks of employees at Apple.
Hoping to calm those worries, and rally them for a great 2013, Apple CEO Tim Cook addressed the troops last week.
9to5Mac’s Mark Gurman had sources on the scene, and has written an excellent report of the meeting.
Here are the highlights:
- Cook told employees: “we [Apple] just had the best quarter of any technology company ever.”
- Cook said: “The only companies that report better quarters pump oil. I do not know about you all, but I do not want to work for those companies.”
- Cook admitted that Apple’s stock is in bad shape, but said that making new products had to be the priority.
- He announced new perks for employees, including steeper discounts on iPhones.
- Cook said that Apple wants to be even more transparent about Chinese labour issues. “We want our partners to be as ethical as we are.”
- Cook said that Apple retail employee satisfaction is too low, and that a search for a new head of retail is still on.
- Cook said that while Android may have more market share, iOS has more Web traffic and usage.
- He said that Android’s metric of success is marketshare, and that Apple’s is usage.
- He trashed Android’s fragmentation.
- Cook told employees that if you split Apple’s businesses into separate companies, each would rank on the Fortune 100.
Watch Below: Can Apple Make A Cheaper iPhone That’s Unique?
NOW WATCH: Tech Insider videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.