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Why does everyone hate Apple right now?

Karen Haslam | Feb. 25, 2013
Does the sentiment towards Apple follows the same pattern as Apple's share price? Is there a media conspiracy against Apple? Why does it seem that there is more negative coverage than positive coverage of Apple? We examine the situation.

The financial results in October were Apple's standard 'best ever' but analysts (as usual) were disappointed.The same thing happened when Apple released its financial results in January.

Incidentally, Apple reported $13.1 billion in profit and $54.5 billion in revenues for its first quarter of fiscal 2012 - Apple made more profit that quarter than any other company and yet analysts were still disappointed. Apple's so called 'disappointing' quarter doesn't look so disappointing when viewed in relation to the most profitable US companies. Apple made profits of $13.1b in the quarter compared to Exxon Mobile ($10b), Microsoft ($6.4b), IBM ($5.8b), Proctor & Gamble ($4.1b), and General Electric ($4b), as reported by Statista.

Does a pattern of positive and negative coverage suggest a connection with Apple's share price? Probably not. Looking back over a year that saw AAPL soar to $700 it's clear that the company was certainly not spared negative coverage.

We'd also suggest that the hedge funds that manage the vast majority of Apple stock pay very little attention to the media coverage of the company.

Apple's lack of positive coverage

So why does it feel that the coverage has taken a turn for the worse? And has it? Perhaps the coverage of Apple is just the same as it always was.

Is it positive Apple coverage that we are missing?

The Street notes: "Everybody hates Apple now. When the tide turns against a company and a stock like it has Apple, most people - except ultra loyal supporters - tune out almost anything positive." It has generally been the case over the past few years that using Apple in a headline guaranteed that lots of people would read the story. For sites like Macworld.co.uk this has left us competing with huge news organizations that wouldn't have given Apple the time of day just a few years ago. Now everyone is writing about Apple. But where it used to be the case that people wanted to read about Apple being great, now it appears that people want to read about Apple being bad. Or at least more people seem to want to write about Apple being bad. They say that success is a curse, it might look like some people have enjoyed building up Apple only to knock it back down, although we wouldn't honestly suggest anything so premeditated.

Alternatively, perhaps Apple just isn't one of the cool kids anymore. Is Apple losing it's cool as Wozniak was suggesting earlier this week?

We've certainly detected a trend of people who were early adopters of iPhones abandoning Apple for Samsung. We even observed that the lawsuit between Apple and Samsung made Apple, while victorious, appear to be the baddy, while Samsung became the rebel who's products were verified as being like Apple's.

 

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