Is Apple rotten to the core?

By Rick Manning via   Article

“Apple CEO Tim Cook blew a gasket at a shareholder meeting when someone had the audacity to ask him a pretty basic question about whether he would commit only to projects that are explicitly profitable. … Cook angrily declared that Return on Investment was not the primary consideration when it comes to engaging in ‘sustainability programs.’

There is absolutely nothing wrong with Cook’s decision to take Apple down the path of pursuing social welfare goals rather than developing great products for a reasonable price.  However, no matter how many geniuses you have at your bar, if customers decide that Samsung’s product rocks and yours is just a rock, Apple dries up.

It is unlikely that Cook can kill off Steve Jobs’ legacy company, after all it survived Steve Scully – barely, but there are few more volatile consumer areas than the personal entertainment product field, and a company can go from hot to cold in a nano-second.

That is why shareholders should be extremely concerned with Cook’s vehemence in defending his decision that promoting sustainability trumps return on investment.   This appears to be his personal mission. …

Now that Cook is out of the closet, investors need to take a hard look at Apple’s policy agenda and determine both whether a company that puts profits second still makes sense as an investment.  And those Members of Congress who lead the limited government charge would be wise to put Apple on their watch list of companies that may be converting from a great American success story to a corporate rent seeker.”


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