Apple Inc. owes most of its early success to the iconic, bigger-than-life, and awe-inspiring presence of Steve Jobs. Many folks were concerned when Tim Cook was brought from the background to steer the ship in the limelight.
For one, Steve Job has become a brand in his own right and Tim Cook was an “unknown” guy who was into operations. A couple of years later, Tim Cook seems to have earned the trust of Wall Street after launching new products and posting the most-profitable quarter in history.
Chuck Jones of Forbes on Sunday wrote an in-depth piece detailing six reasons Tim Cook is doing a great job as Apple’s CEO. He noted that the culture at the firm has changed since Tim Cook took over as CEO. One of the signs of the culture change is that Apple more open and it lends a strong voice to social issues. The firm has also shown awesome operational execution as it metrics continue to set the pace in the tech space. The firm also has a dramatic lead over rivals in the smartphone space where it takes 94% of the profits.
Lawsuits can’t stop Apple
Apple Inc. is unstoppable as it continues to strengthens its foothold in existing markets while breaking ground in new markets. Apple’s lead in the tech space was confirmed last Friday after news broke that Samsung was unveiling “new” features that Apple had unveiled a couple of months earlier. Apple’s unmatched lead is confirmed today after it was declared the winner in a patent infringement lawsuit battle that has raged on for almost two years.
In 2013, ContentGuard filed a patent lawsuit against Apple and Samsung, claiming that the firms infringed on its anti-piracy patents. In 2014, ContentGuard filed the same lawsuit against Google Inc. In the suit against Apple, ContentGuard claimed that Apple infringed on its five DRM patents to protect movies, songs, shows, and books on its devices that use the iBooks and iTunes services.
Google and Samsung have been cleared of any wrongdoing in the said patent lawsuit since September. Last Friday, the U.S. District Court for the Eastern District of Texas jury ruled that Apple didn’t infringe on ContentGuard’s patents.
Apple is a strong bull
The bullish outlook for Apple Inc. is getting stronger with each passing day and the firm’s victory in the patent lawsuit should make its bulls more vocal. Last week, analysts at Goldman Sachs opined that the stock was undervalued because the market mistakes Apple for a hardware stock. The analysts opined that Apple has bright prospects ahead in the software side of its business and they forecast a 43% upside on the stock.
Jim Cramer has also supported the bullish case for Apple. He notes that the firm trades like a cheap auto parts firm. In his words, “Apple is so darned cheap that it trades more like some metal-bending auto parts company – selling at just 10 times earnings”.