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What to expect from Apple's Q2 results today

John Cox | April 24, 2013
Speculation is rife that when Apple announces its fiscal second quarter results today at 5 pm EDT, its revenue, profits, gross margin, and earnings per share or some combination of them will be less than expected, or less than they should be, or both.

Moreover, he argues, "the [Apple] failures being cited are not significant."

"In terms of increased competition, before Samsung there was Nokia and Motorola and the mobile operators and Microsoft and Dell and many others long forgotten," Dediu says. "They were all about to "defeat" Apple."

Finally, the alarmists miss something fundamental about Apple. "You have to appreciate that the greatest thing [Steve] Jobs ever created was not a product but Apple itself," Dediu says. He expands on this idea in a related post

"Unlike almost every other large company it's not organized in "divisions" which have responsibility for "a business" in the sense of profit or loss," he explains. "At Apple most people or teams are assigned a function like "design", "engineering", "sales" etc. When a product is being built, they are assigned to that effort. When the product is complete, they go to another product. The nearest comparison to this structure is a military organization. There you have Infantry, Armor, Aviation, etc. These groups are assigned (in a combined fashion) to a particular effort or battle and then go back to the barracks when done."

In the Chosun Daily interview, Dediu argues that "Innovation is not invention."

"Innovation is the application of invention in ways that solve new needs. I'm always amazed at how misunderstood this term is even though the definition is easy to understand:

'innovation differs from invention in that innovation refers to the use of a better and, as a result, novel idea or method, whereas invention refers more directly to the creation of the idea or method itself.'

"Not all inventions are applied and not all innovations depend on internal inventions. Innovation is applied invention just like engineering is applied science," Dediu says. He compares Apple to animation movie maker Pixar, which is set up so that "it makes blockbusters and nothing else."

"That means it does not make many of them and not always regularly and that the ideas may not be original, but the results are always very popular," he says. "Pixar is not like any other studio that makes some hits and some flops. Pixar is also a functional organization. It's not an accident that they were both built by the same person and that they are both successful after he left."


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