Apple Management's Greed For Profits And Self Interest Tripping Up Shareholders

A few days ago, ZDNet had a fascinating article in which the author detailed how Apple management's greed for milking as much profits out of existing products has led to a complete lack of innovation at Apple since Steve Jobs passed away.

I have written time and time again about how all Apple has done since Tim Cook took over is tinker with size, shape, speed and color of most of its devices with few signs of true innovation.

Of late, Apple seems to be focused on a full-tilt chase after Samsung in the smartphone segment which is miles ahead in terms of innovation. At least, based on what we see from Apple in terms of innovation in the smartphone segment.

As far as the connected/wired home goes, Google with Google Home and Amazon with Echo/Dot seem to be so far ahead of Apple that them saying "eat my dust" to Apple would be meaningless.

In addition, all the stuff we are heading about the Apple Car, Apple TV, Apple streaming content plans are not innovation. We already have Tesla and Netflix and Amazon Prime already out there not to mention Chinese and Japanese companies going after the same segment and who are seemingly far ahead of Apple.

I must say that trying to milk profits out to each and every product is never ever a bad thing but doing so at the cost of innovation or the fear of cannibalization is scary from a shareholder point of view.

We are hearing chatter about a possible all-glass iPhone in the fall of 2017 which is laughable when one sees that Samsung is about to unveil its bendable OLED phones early next year. If true, yet again Apple will be left behind timidly shouting "me too".

In my opinion, the reason why Apple management has chosen to no longer lead through innovation and even  stifle innovation is that they are more than content to sell umm dispose/use in lieu of cash/use shares to pay tax burden (they don't like me saying sell) their Apple stakes at current levels. When you have been given/awarded tens of thousands or hundreds of thousands of even millions of shares, what difference does it make if you sell at $140 or $120, or $99 or even $89.

It's money in the backyard for them.

However, for shareholders who are actually buying Apple stock at $140 or $120 or $99 or $89, there is a lot more at stake.

Tim Cook and gang are not willing to participate or show faith in their own ability to innovate or trust in the possibility of higher stock prices by putting their own money and maybe buying 10 or 20 shares for a change or hitting pause on the relentless barrage of selling we continue to see from Apple insiders.

So for now, shareholders have to be content with Apple running after every leading edge company out there shouting "me too" while insiders continue to merrily skip their way to the bank singing "Skip to my Lou".

Come check out my trades on Apple, Netflix, Google, Amazon and the rest of the portfolio at jaysomaney.com

(Long all except Samsung, long and short options on all except Samsung)