Despite Apple’s 15% drop in iPhone sales, and bleak quarterly earnings, stock shares have jumped 7%. R & D spending is up a record 6% for the quarter and 28% for the year thus far. It seems that shareholders and Tim Cook want us to look at the big picture . . . the future . . . when making our decisions about Apple’s fate.
Cook spoke with Wall Street analysts recently on the 2016 Quarter 3 earnings call. He was very optimistic about the company’s future, and even dropped some more, long-awaited hints.
Speaking about Apple’s $1 billion investment in China’s largest ride-sharing company, Didi Chuxing, Cook said:
“It was an unusual investment, we don’t have a long history of doing a lot of these . . . We think we’ll learn a lot about the business and the Chinese market even beyond what we currently know.”
Tesla CEO Elon Musk just revealed a piece of his “master plan” which includes allowing Tesla owners to rent out or use their own Tesla vehicles as part of a ride-sharing program. Who knows if Apple has something along these lines in the works. There has definitely been talk of Apple Autonomous Cars, and Apple is a provider of services and apps and has recently focused energy on it Maps interface.
Cook also spoke of Apple’s interest in augmented reality, which came into the conversation due to the huge Pokémon Go craze. He didn’t completely rule out the Apple TV or other video services. He said:
“You shouldn’t look at what’s there today and think we’ve done what we want to do. We built a foundation that we can do something bigger off of.”
Cook was surprisingly open and even commented on the recent notice of substantial, non-specific R & D spending. He hinted:
“The balance of the company we’re managing more flattish, the products that are in R&D, there is a quite of bit of investment, for products and services that are not currently shipping or derivations of what is currently shipping. You can look at the growth rate and conclude there’s a lot of stuff we’re doing beyond the current products.”
Source (Business Insider)