News & Information for Technology Purchasers NewsFactor Sites:     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Billionaire Investor Carl Icahn Still Betting On Post-Jobs Apple
Billionaire Investor Carl Icahn Still Betting On Post-Jobs Apple

By Jennifer LeClaire
August 14, 2013 1:22PM

    Bookmark and Share
Carl Icahn's statements about his "large position" in Apple indicate strong optimism regarding the firm's future. However, the management team at Apple and its overall market position is much different than before Steve Jobs returned to Apple. This calls into question the value of that time as an "experiment" that would predict the company's future.

After taking plenty of hits this year, Apple shares rose 2.5 percent on Wednesday. The boost comes after billionaire investor Carl Icahn tweeted about his firm's "large position" in the iPhone maker.

Apple shares have dipped more than 30 percent from a Sept. 2012 high of $705. Rumblings are rising over whether CEO Tim Cooks can innovate like the late Apple co-founder Steve Jobs. Earlier this week, Oracle CEO Larry Ellison made his views clear: Jobs is "irreplaceable" and Apple will have a hard time without him.

But Icahn is still betting on Apple. In fact, he sent a Twitter message noting he believes the company's stock is "undervalued." Icahn also tweeted about a recent meeting he had with Cook, among other things.

"Had a nice conversation with Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly," he tweeted on Monday.

When Icahn Speaks . . .

Apple is clearly not at the top of its game. The iPad saw a lower-than-predicted shipment total of 14.6 million units in the second quarter, down from 19.5 million in the first quarter. The iPhone maker beat Wall Street expectations on shipping volumes but nevertheless posted a year-over-year decline in the second quarter.

Apple CEO Tim Cook said the company is "laser-focused and working hard on some amazing new products that we will introduce in the fall and across 2014." But it remains to be seen if he can come up with a cool new something to stop the bleeding.

We know that the iPhone 5S and other products are expected to debut Sept. 10 and should give Apple a much-needed bump. But how innovative the line up really is remains to be seen.

"Welcome to the undervalued Apple party, Mr. Icahn," David Rolfe, chief investment officer of Wedgewood Partners Inc., which has $5 billion under management, including Apple, told Bloomberg. "When Icahn says they can go further, they certainly can. Even in a slow-growth environment, Apple is still a prodigious cash-flow generator."

Who's Right?

We caught up with Ross Rubin, principal analyst at Reticle Research, to get his take on the shareholder activist Icahn's Apple moves. He told us the statements related to Carl Icahn's investment seem to indicate strong optimism regarding Apple's future.

"Larry Ellison's comment, in contrast, indicated pessimism. However, the management team at Apple and its overall market position is much different than the previous era before Steve Jobs returned to Apple. This calls into question the value of that time as an 'experiment' that would predict the company's future," Rubin said.

"The forthcoming Mac Pro desktop may not represent a new category or even a particularly strong revenue driver in Apple's overall mix, but it is a reminder that Apple can create a dramatic and striking reinterpretation of an existing product category," he said.

Tell Us What You Think

Name: is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.

1.   Schools Buy Million Chromebooks in Q2
2.   US Orders a New Cray for Nuclear Arms
3.   PC Shipment Slump Bottoms Out
4.   IBM Earmarks $3B for Next-Gen Chips
5.   Most Networks Not Ready for IoT

Most Networks Not Ready for IoT
But most enterprises are prepared.
Average Rating:
Gartner Sees Tablets Up, PCs Down
But PC sales are recovering.
Average Rating:
Review: Tablets with Keyboard Covers
How do Surface and Lumia stack up?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
Large-Volume DDoS Attacks Hit Record in 2014
The number of distributed denial-of-service (DDoS) attacks set a record in the first half of 2014, according to a report by Arbor Networks. The number of attacks over 20 GB/sec doubled.
U.N.: Nations Hide Rise in Private Digital Snooping
Governments on every continent are hiding an increasing reliance on private companies to snoop on citizens' digital lives, the U.N. human rights office says, with grave concerns about privacy.

NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.