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Breakingviews: Apple's pie

Thursday, March 07, 2013 - 03:12

March 7 - Some $260 billion of market value has been lost at Apple over the last six months. Breakingviews columnists try to figure out where it all went.

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There's a great scene in ocean's eleven where the casino boss played by Andy Garcia. Realizes he's been content but one of his henchmen is still flummoxed and says I don't understand what happened all that money. And we've been asking the same thing about apple which 260 billion dollars seems to just disappeared from apple we don't know where went. Richard start digging into. Having her way I don't want a -- manifests from them vulnerable from the market cap for the companies that back in September I hit an all time high since then. It's lost. That much -- about it we wonder where to go on and we try to draw a very wide net. Of possible competitors as he might have benefited so people thinking Apple's products iphones ipads going to be less well make less profit than maybe they going somewhere else to Google's Android system to Samsung which makes and -- hold rove and other but it didn't all. Transfer back to I mean we are we -- look for pretty wide net includes himself and operate this and living will money on other phones they do lapels even Microsoft. Would take to the has gone down about it hasn't -- -- tonight. And it adds up to less than off. So we just kind of well when as they go -- I mean so obviously markets and investors and rational completely like it's not a -- necessarily as sort of went please proposition like that but that's another possibility. Is -- that this is decided will actually consumes him and the Samsung and people are catching up with apple prices again down the profits are going to be less because look at campus today is that the future corporate profits and may -- -- -- -- -- that -- -- -- Does that mean how does that play out -- -- have been a lot of hedge funds kind of involved this is -- mean that money is just moved out of the industry altogether or is that partially it means that some the money's gone to other you know kind of things like -- or other you know. Other sorts of boring giving companies and you see like you know all these giant mega cap companies are hitting new record highs every day jobs in the past -- tests done there. If you look at the numbers it's it's pretty obvious that two of the biggest winners are Google and Samsung and in about 530 and forty billion idea is that what you intuitively expect you'd expect even -- -- the biggest. -- there but nobody -- Lincoln but not exactly which is -- you know me and against some of this is people pushing value -- -- -- people -- about the just. In the markets as -- as simple as that does not say I don't like yes or whatever it is still uninteresting exercise and and yet. You think to meddle in other people in my benefited those things itself. Operators not just in the US -- so perhaps elsewhere it does include. People like HTC in Taiwan who Wilson make handsets android handsets and so on until -- -- missiles. All pretty fungible item and because there's still a lot of mixed messages about out all the way investors look at it whether or not you know what they do with their cash could. Ultimately Poland of -- new investors. And -- that money back. -- exactly as Richard the end saying you know this is the market isn't. -- at all our offense very irrational. And if you look at the prices paid you know on the upside perhaps they were getting -- copy and instead went -- to -- downside now. All right we'll leave it there and we will keep an eye on apple and we've got more breaking news tomorrow.

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Breakingviews: Apple's pie

Thursday, March 07, 2013 - 03:12