Paul Mampilly says Apple is doomed. Mampilly is the writer of the investor newsletter Profits Unlimited from Banyan Hill Publishing. Years ago, however, he was one of the hottest money managers on Wall Street. He won the investing contest held by the John Templeton Foundation. BARRON’S called his hedge fund one of the best hedge funds in the world. He managed money for ING, Deutsche Bank and the Royal Bank of Scotland. A few years ago he gave up managing funds to make wealthy people even wealthier. He still loves to follow the markets and to find undervalued companies, but he prefers to do it for ordinary people, not the people who can already afford hedge funds.
Paul Mampilly certainly keeps his eye on trends in technology. He has made a lot of money by investing in tech companies. And he believes that in the near future his subscribers will make even more fortunes by investing in companies that make up the five megatrends he has identified.
However, Apple is not one of the companies he recommends. As he explains in a recent blog post, Apple has stopped innovating ever since Steve jobs died in 2011. Thanks to Jobs, Apple came out with the iPod in October 2001, the iPhone in Juune 2007 and the iPad in April 2010. However, since Jobs died, the company has not released any revolutionary new products. it has tinkered with its old products, bringing out upgrades, but that is all.
Paul Mampilly identifies several areas of technology where Apple is falling behind. That includes the computers children use at school. Years ago, Jobs credited some of Apple’s success to the widespread use of the Apple II in schools. That made the company popular with those children, so they kept buying Apple products when they grew up. Now, however, schools are using Chromebooks. That’s a computer that runs Google’s cloud software word processing, creating presentations and spreadsheets. Mampilly’s own children are using Chromebooks in school. It has a 58% market share in schools.
What’s even more threatening to Apple, Paul Mampilly points out, is the children are learning to use computers through voice commands rather than keyboards. Amazon and Google now have the lead in developing this technology. Apple had the lead, when it introduced Siri. But it stopped innovating Siri, and has lost ground to Google’s Assistant and Amazon’s Alexa.
Warren Buffett is keeping Apple’s stock up for now, but that won’t survive Apple’s business failure to innovate.
Paul Mampilly @ Facebook.