Will Apple go broke?

    It is clear that Apple is not doing well these days; their share of the mobile market (which makes up more than 50% of profits) has drastically fallen below the 50% line.  Certainly, their key markets tend to be for the well todo and the relatively well off.  While this might cushion their fall during financial downturns, it also means that the total size of their markets tend to be relatively small--as opposed to other competitors which are more widely distributed. This is as true for computers as for smart-phones, which have seen a rapid adoption of android devices, reaching around 80%+.  Selling non-expandable desktops (new 'trash can' black MacPros) for $3000-$8000 each is an extravagance few can actually afford.

    To top it off, the media has not been favorable to Apple recently.  The leakage of the Jennifer Lawrence nude photos (as many other top female celebrities) showed that Apple's 'it just works' philosophy has some key fundamental flaws.  Tim Cook never publicly apologized, in spite of firing Scott Forestall for problems with the map program. (Which do you think is worse?)  It is also clear, from Apples public relations, that the company is not doing that well.  Tim Cook's appearance on Charlie Rose, whom I respect greatly, was merely a propaganda stunt.  Mr. Rose knows nothing of technical things, so could not ask 'deep' questions regarding the company or its products.  Cooks publicity efforts merely amount to a 'trust blindly in us' approach.   Security guru Steve Gibson has noted that Cook's claims do not live up to standard: Apple Co keeps the security keys, which means that they could encrypt and access your information at any point.

    But the key reason why the company might be in greater financial problems than suspected: a technology bubble is in the forming. (See graph below).  When it pops, it will certainly have a disruptive effect all over the US economy, affecting both producers and buyers of technology.  

    If it happens, this will be rather unfortunate, as Apple has been taking important steps in closing off their outsourced plants in China and bringing these into the United States. (This is particularly the case with their MacPro manufacturing facilities.)  They have set an example for other tech companies to follow, but yet remains to be seen whether their example will 'pay off'.  And, by the looks of it, their good efforts might not pay off.

    If they had only stuck with their traditional MacPro offering (big heavy square grey boxes), they would likely be in a better position today.  

    Only Steve Jobs can 'out do' Steve Jobs....