Video: Is Apple’s core being crushed?


Senior Technology Analyst Eric Bleeker and Chief Technology Officer Jeremy Phillips discuss dangers to Apple‘s (Nasdaq: AAPL) culture in its current legal battles. As part of its legal spat with Samsung, Apple — a company that goes to unheard-of extremes to protect the privacy of product design — has had to reveal the workings of its design process in a surprisingly open manner. The most interesting revealed design is an iPhone concept from 2006 that looks shockingly close to the iPhone 4 design and was inspired by Sony.

Another revelation that’s less important to the way Apple functions but is still interesting is that Apple has had to release gross margins for the iPhone and iPad across the past several years. To be sure, Apple has to regularly release sensitive design information through other means, such as patent applications, but while many concepts are dated, it’s striking that Apple’s inner workings are being laid bare.

Investors might say design isn’t at the heart of what Apple is anymore — pointing to the dominance of iOS software — and to some extent that’s true. But Apple’s DNA still centres on design. We’ve seen this not only in the iPhone, but also the iPad — look how far that was ahead of other tablets. The MacBook Air was a huge design feat, and the stakes are raised extremely high for Apple TV to come out with a design that’s both simplistic and that wows consumers.

Steve Jobs stated to biographer Walter Isaacson that he wanted to go to thermonuclear war against Google‘s (Nasdaq: GOOG) Android, but having Apple reveal its designs and product inspiration in the open feels as if the company is going to launch thermonuclear war against its own DNA and long-held beliefs. Again, Eric cautions that this isn’t any reason to sell Apple, but barring a massive Samsung injunction or a huge royalties difference between patents, ongoing court battles are beginning to feel like a pyrrhic victory.

If you’re in the market for some high yielding ASX shares, look no further than our “Secure Your Future with 3 Rock-Solid Dividend Stocks” report. In this free report, we’ve put together our best ideas for investors who are looking for solid companies with high dividends and good growth potential. Click here now to find out the names of our three favourite income ideas. But hurry – the report is free for only a limited time.

 More reading

The Motley Fools purpose is to help the world invest, better. Take Stock is The Motley Fool’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Click here now to request your free subscription, whilst it’s still available. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

A version of this article, written by Eric Bleeker, originally appeared on fool.com

OUR #1 DIVIDEND PICK FOR 2016...

Forget BHP and Woolworths. This "dirt cheap" company is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for hungry investors, including SMSFs, this ASX company could be the "holy grail" of dividend plays for 2016.

Enter your email below to discover the name, code and a full investment analysis in our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2016.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.