Wall Street analysts are supposed to know what they are talking about. They are experts, right? Billions of dollars move on their say so, which is why Apple stock took a pounding right after Tim Cook unveiled the new iPhone 5S and 5C a couple of weeks ago. “Too expensive,” they said. “Not innovative enough,” they said. “Apple is over,” they said.
Guess nobody told the folks at Apple or the nine million people who bought the 5S and 5C over the weekend, making it the one of the most successful iPhone launch in Apple’s history. One analyst admitted that the actual sales were 50 percent higher than what he had predicted. Some models are sold out.
Oh, and by the way, 200 million Apple devices have downloaded the iOS7 operating system, making it the fastest software upgrade in history. And 11 million people are using the new iTunes radio–a service that went live less than a week ago.
So it’s been a good week for Apple and a bad week for people who are supposed to be experts about Apple stock. The lesson here is not to stop listening to so-called experts (you wouldn’t expect a consultant to advise that!). The lesson–which Apple has illustrated perfectly for years–is to have a clear vision for your product or service and to do a great job understanding your relationship to your customers.
Wall Street analysts do a great job of understanding stocks and how to advise people on their purchase and sale. As their predictions about the iPhone 5S and 5C prove, they are are a little weak on understanding the relationship Apple has with its customers.