'Bozo Culture At Apple' Author Responds To Reader Questions

The guy who said Apple Inc. AAPL needs a "No Bozo Policy" has responded to your questions.

Global Equities Research's Trip Chowdhry released a note on Wednesday to help clear up a couple questions he has been asked about his report last weekend about the rise of "bozo culture" at the tech giant. In the former note, he said Apple CEO Tim Cook has "zero vision/zero passion."

See Also: Global Equities' Trip Chowdhry Blasts Apple Management: 'Tim Cook Has Zero Vision/Zero Passion,' Calls Board Callous & Says Co Needs A 'No Bozo Policy'

Question: "Why does [Global Equities Research] think that the depressed P/E multiple is due to Apple's management, rather than the smartphone market being saturated?"

Chowdhry used three very different examples of other saturated markets, but called back to one common theme: a "passionate visionary" in charge:

• Coffee: Howard Schultz with Starbucks Corporation SBUX.
• Music: Jonathan Rubenstein with the iPod.
• Car: Elon Musk "cannot make enough Cars to meet the ever increasing demand for" Tesla Motors Inc TSLA's auto-pilot cars.

"It is believed that Steve Jobs was a unique person, and that was the only reason why Apple Stock traded at P/E multiples of 20s," Chowdhry wrote. "However, currently there are more than 100 companies that trade at PE multiples of greater than 20s, and they are not being led by Steve Jobs."

Related Link: Apple Continues To Fall As iPhone Production May Be Cut By 30%

Question: "Angela Ahrendts has been the CEO of Luxury Retailer Burberry; Why is she not successful at Apple?"

Chowdhry called Ahrendts "completely clueless." Over the past year, Global Equities spoke with at least 4,000 Apple customers and "less than 10 people" also shopped at Burberry -- the company Ahrendts helmed as CEO from 2006 to 2014 before joining Apple. The analyst believes Apple could have "easily" sold 30 million Apple Watches "had it not been sold in the way it is currently been sold by Angela Ahrendts."

In November, Canalys estimated about 7 million Apple Watches had been sold since launching in early 2015. IDC estimated Apple's smartwatch market share at just over 61 percent in 2015.

Ahrendts lack of "at-scale" skills is what has led to her supposed failure, according to Chowdhry. He said Apple Stores waste too much retail space and the square feet due to Lock and Key tables. Apple Watches that are available to "touch and see cannot be placed on the wrist," a deterrent to buying the product.