Apple into the spin zone

Posted by cellphones

July 26, 2007 |

It what seems to contradict some of the news recently that the iPhone hasn’t been as much as a success as anticipated, Apple announced quarterly earnings today that beat street estimates and as a result the stock made up all of yesterdays losses. Even though the Leopard operating system has fallen flat of late the sales of Macs shot up 33% and with posted revenue of $5.41 billion and net quarterly profit of $818 million the company looks as strong as ever.

However when Jobs was asked of the iPhone he responded with ‘We’ve gotten off to a great start. Focus is not on initial sales, but instead a long term business’. This was an odd statement as many believe that reality is just the opposite in the wireless business where a new cell phone is seemingly launched every day. When you hear a CEO using buzzwords like long term then it just might be time to start worrying.

I had previously discussed how Apple has been so successful in terms of marketing, they now seem to be magicians in the category of spin. Recently anytime they are criticized or scrutinized in a negative fashion they bounce back quickly to refute the claim or announce a product or recent success. Case in point today when things were turning negatively in relation to the Jesus phones success and slower than expected sales they announce their higher than expected profits and drown out all criticism. Few wonder why the profits are so high and just think its because of all their recent success, but all that profit just might be from AT&T backing up the Brinks truck for those exclusive rights and next quarter might be a different story. It will be hard to see Apples sales not effected when they are effectively competing with themselves with iPods and iPhones. Why anyone would want both other than for vanity sake would be a mystery.

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