Are you an Apple enthusiast? K

Are you an Apple enthusiast? Keep your devices safe and secure

There has always been some degree of tension between Apple analysts and Apple enthusiasts.

Are you an Apple enthusiast? K

Analysts write things. Enthusiasts baulk. Apple comes out with their quarterly earnings report. As it happens, the enthusiasts are usually right. That’s a problem for analysts.

The enthusiasts are not just cheerleading for the company they love. They also have their finger on the pulse of what the company is about, and what its future prospects really are.

Not all analysts miss so badly. Some are also frighteningly accurate when it comes to AAPL. Either they have better tea leaves, or they can read them more accurately. There are a number of reasons a good analyst might misread Apple. One of those reasons is that Analysts have a hard time understanding Apple’s product strategy.

Apple is not the same as every other tech company. If it were, they would have no more success than any other tech company. Here is a brief primer on what makes Apple different with a focus on their product strategy:

Luxury over durability

Apple understands that durability is a feature. But so is luxury. And it is a matter of which feature the consumer would rather have. When features compete, you have to make hard decisions. And more often than not, Apple has chosen to err on the side of luxury over durability.

Protective cases for iPhone glass sandwiches exist to provide luxury buyers with durability. Because of a healthy third-party ecosystem, Apple does not have to compromise the luxury of their products.

It is an analyst mistake to think that more durable competitor products have any kind of competitive advantage. If iPhone X has shown us anything, it is that consumers will gladly trade perceived durability for perceived luxury. That has to be strongly factored into any Apple Analysis.

Apple can outspend the competition

Apple does not always write big cheques for things. They make small, strategic purchases. But that can lull competitors and analysts to sleep when it comes to deciding where Apple stands in a given market. It might look like a close competition, but those optics are deceptive.

Recently, it was made public that Apple is bringing Oprah onboard for their TV ambitions. There are few companies that have the gravitas or the money to do that. If Apple was really concerned, they could buy Disney tomorrow.

Apple bought Beats and is now the #1 streaming music service in the US. If you think Apple is struggling in a particular market, it only looks like a fair fight. It isn’t.

Apple really is a customer-first company

It is a grave fallacy that corporations don’t care about people. They only care about the bottom line. That is very true about many companies. But it is not true of all companies. Companies are founded by and made up of people. And people have passions and causes and goals, many of which have nothing to do with money.

While Apple has a fiduciary responsibility to its shareholders, Apple will happily show them the door when the shareholder wants the company to go in a direction that is away from its people-centric philosophy.

Forbes recalls what Tim Cook said at a shareholders meeting when asked about profitless endeavours such as accessibility for the blind:

“I don’t consider the bloody ROI.”

It was the same thing for environmental issues, worker safety, and other areas that don’t have an immediate profit.

The company does “a lot of things for reasons besides profit motive. We want to leave the world better than we found it.”

Tim Cook is a true believer. And he surrounds himself with true believers. Companies that truly believe in something cannot be evaluated the same way as companies that believe in nothing but the bottom line. Deciding that Apple is one of the former as opposed to the latter is an error that will throw off your projections every time.

Even the worst Apple analysts get it right sometimes. Then again, a broken clock is right twice a day. To improve your success with regard to analysing Apple, remember that luxury trumps durability. It only looks like a fair fight. And Apple is led by true believers.