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Notes of interest from Apple's Q3 2012 conference call

post #1 of 96
Thread Starter 
A record quarter for the iPad was the stand-out performance of Apple's third quarter of fiscal 2012. Following Tuesday's earnings release, the company held a conference call with analysts and the media, and notes of interest follow.

Participating in Tuesday's call was Apple Chief Executive Tim Cook and Chief Financial Officer Peter Oppenheimer.

Highlights
  • New all-time quarterly record for iPad unit sales.
  • Mac sales only grew 2 percent year over year, but that was enough for a new June quarter record on sales of 4 million units.
  • Number of iPhones in the Fortune 500 have more than doubled in the last year, while iPads have more than tripled.
  • More than 410 million iOS devices (iPhone, iPad, iPod touch) have been sold to date.
  • More than $5.5 billion has been paid to iOS App Store developers.
  • Weekly iPhone sales continue to be negatively impacted by rumors of new products, Oppenheimer revealed. Cook said he believes there is "incredible anticipation" for future products that has affected sales, though the exact impact is "difficult to sort out."
  • "We could not be more confident in our new product pipeline," Oppenheimer said, though he unsurprisingly declined to offer any specifics or details.

Apple's iPhone business

iPhone growth was 28 percent year over year with 26 million units. Distribution is now at over 250 carriers in over 100 countries.

iPhone channel inventory ended the quarter at 4-6 weeks.

$16.2 billion in recognized revenue from iPhone sales, an increase of 22 percent from a year ago.

Oppenheimer highlighted iPhone adoption in the enterprise, saying it helps businesses and employees be more productive.

Apple's iPad business

iPad sales grew 84 percent to 17 million. Apple is now selling iPad in 97 countries.

Recognized revenue was $9.2 billion in the quarter, an increase of 52 percent from a year ago.

About 3.2 million units were in the channel at the end of the quarter, leaving Apple at 4-6 weeks of inventory.

Interest in the new iPad was "high," but sales of the reduced-price iPad 2 in the K-12 education market were particularly strong, Oppenheimer said.

Apple's Mac business

The June quarter was the best ever for U.S. education institution sales of the Mac.

Portables represented nearly three quarters of all Mac sales for the quarter.

Apple ended the quarter with 3-4 weeks of Mac channel inventory.

Mac sales were hurt by the timing of the portable announcement last quarter, Cook said, as new products were announced with less than three weeks remaining in the quarter.

Prior to WWDC, weekly Mac sales were running below the previous year, but after WWDC, new MacBook Pros and MacBook Airs drove sales growth and pushed Apple into a positive.

MacBook Pro with Retina display was "incredibly well received." Apple hasn't yet met demand, but Cook said he expects they will do so next month.

Apple's App Stores, iTunes, iCloud, and Apple TV

iTunes had sales of over $1.8 billion, iTunes Store launched in over 12 countries including Hong Kong, Singapore and Taiwan last month.

Apple TV sales were 1.3 million in the quarter, up over 170 percent year over year. 4 million units in the fiscal year, which Cook called "pretty incredible."

Apple's iPod business

iPod touch accounted for more than half of iPods sold, and iPod sales were higher than Apple expected.

Ended quarter with 4-6 weeks of iPod channel inventory.

Apple's retail business

Revenue at retail stores was $4.1 billion, an increase of 17 percent from a year ago. Apple's stores sold 791,000 Macs.

9 new stores opened during the quarter. There are now 373 total Apple stores, with 123 of them outside of the U.S.

Average revenue per store was $11.1 million.

Apple's regional business segments

Asia-Pacific grew 25 percent in the quarter. Greater China represents about a third of Apple's growth in the region.

China's revenue was $5.7 billion, a 48 percent year over year increase.

Cook said Apple was "incredibly pleased" with the performance of the iPhone greater China. Sales were up more than 100 percent year over year.

Europe was "essentially flat" year over year for the iPhone, Cook said. He highlighted that region as the biggest disappointment.

U.K. was relatively solid with 30 percent growth, but France, Greece and Italy were singled out as "particularly poor," while Germany saw just single-digit growth for the quarter.
post #2 of 96

I'm happy that Mac sales grew, particularly since they didn't update for… what, all of last quarter?

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #3 of 96
With iPad still selling like gangbuster is there really a need for a Mini?
post #4 of 96

Portability. So a smaller one would be a nice option as a compromise between a phone and the current large pad.

post #5 of 96
Quote:
Originally Posted by Tallest Skil View Post

I'm happy that Mac sales grew, particularly since they didn't update for… what, all of last quarter?

 

Agreed... I am surprised they did not update them for so long!

post #6 of 96
Quote:
sales of the reduced-price iPad 2 in the K-12 education market were particularly strong, Oppenheimer said.

 

There. No need for a smaller one.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #7 of 96
Quote:
Originally Posted by Tallest Skil View Post

There. No need for a smaller one.

 

I interpreted this differently.

 

I read this to say that the lower cost iPad was doing very well.

 

Particularly, the full statement was:

 

 

Quote:
Interest in the new iPad was "high," but sales of the reduced-price iPad 2 in the K-12 education market were particularly strong, Oppenheimer said.

 

This seems to be saying that the new iPad is doing well but the lower cost one may be doing better.

 

The best (or only) pathway to lower cost iPad might be smaller iPads. Maybe not. Apple seems to have found ways to keep previous generations (e.g., iPhone) online at lower cost. Perhaps this will be the route they take. I think they'd like to try to get an iPad down closer $200 and pretty much end any traction any competitors might be gaining.

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post #8 of 96
Quote:
Quote:
Originally Posted by Tallest Skil View Post

There. No need for a smaller one.

We get it. You don't want a mini. We get it

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post #9 of 96
Quote:
Originally Posted by MJ1970 View Post
This seems to be saying that the new iPad is doing well but the lower cost one may be doing better.

 

I doubt that.

 

The best (or only) pathway to lower cost iPad might be smaller iPads.

 

That's not… no.

 

Quote:
Originally Posted by Red Oak View Post
We get it. You don't want a mini. We get it

 

No, you haven't even begun to get it: there's no purpose for a smaller one.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #10 of 96
Quote:
Originally Posted by blackbook View Post

With iPad still selling like gangbuster is there really a need for a Mini?

The issue is around the concept of a "price umbrella". At a $399 entry point, the problem is that Apple created a tablet market and competitors finally figured out that they can come in at the lower price points (now at $199 with the Nexus 7) and capture market share without competing with Apple. It was one thing when there was no traction for the other products, but Apple can't realistically leave that segment unanswered because it will just dilute the iPad's domination of the tablet market - or at least make it look diluted when you look at market share numbers.

 

I'm not suggesting Apple would enter that segment just to be in that segment. I firmly believe Apple doesn't enter a market or segment unless it feels it is going to field the best product in that segment. But if they are confident of their product offering, they aren't going to fail to make the right business decision out of some allegiance to a past stated "rule".

post #11 of 96
Quote:
Originally Posted by Tallest Skil View Post

 

I doubt that.

 

 

 

That's not… no.

 

 

 

No, you haven't even begun to get it: there's no purpose for a smaller one.

For you undoubtedly. Others?

 

Sure there is.

post #12 of 96
Quote:
Originally Posted by jfc1138 View Post
Sure there is.

 

You have to weigh the single 'benefit' of a smaller device against the losses.

 

It makes no sense. There are far too many losses.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #13 of 96
Quote:
Originally Posted by Tallest Skil View Post

 

No, you haven't even begun to get it: there's no purpose for a smaller one.

 

The purchasing public is actually starting to say that it does also want the choice of a smaller tablet, and the longer Apple leaves that price umbrella in place the more likely a competitor is going to field a viable product. The reviews of the Nexus 7 are suggesting that could be now. I'll give you credit for consistency, but Apple has shown itself to be more open to competing in segments where it previously declared it would not ... once they feel they have a compelling product to offer.

post #14 of 96
Quote:
Originally Posted by Tallest Skil View Post

I doubt that.

 

OK. Good for you.

 

 

Quote:
Originally Posted by Tallest Skil View Post

That's not… no.

 

You know this...how?

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post #15 of 96
Quote:
Originally Posted by zunx View Post
How to increase Mac (and display) sales: offer Matte option. No matte, no purchase!!!

 

STOP. NOW. This is spam.


Quote:
Originally Posted by MJ1970 View Post
OK. Good for you.

 

So post some numbers, otherwise you've no argument.

 

Quote:

You know this...how?

 

Because that doesn't follow from what they've done previously? They didn't make a smaller iPhone without data or apps, they took last year's model and made it cheaper. Same with the iPad.

 

And when the 4th iPad comes out next spring and the iPad 2 is $299, all this 7" crap will peter out.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #16 of 96
Quote:
Originally Posted by Tallest Skil View Post

 

You have to weigh the single 'benefit' of a smaller device against the losses.

 

It makes no sense. There are far too many losses.

 

Understood. However, how do you know what these benefits and losses are from Apple's perspective?

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post #17 of 96
Quote:
Originally Posted by AppleInsider View Post

A record quarter for the iPad was the stand-out performance of Apple's third quarter of fiscal 2012. Following Tuesday's earnings release, the company held a conference call with analysts and the media, and notes of interest follow.
Participating in Tuesday's call was Apple Chief Executive Tim Cook and Chief Financial Officer Peter Oppenheimer.
Highlights
  • New all-time quarterly record for iPad unit sales.
  • Mac sales only grew 2 percent year over year, but that was enough for a new June quarter record on sales of 4 million units.
  • Number of iPhones in the Fortune 500 have more than doubled in the last year, while iPads have more than tripled.
  • More than 410 million iOS devices (iPhone, iPad, iPod touch) have been sold to date.
  • More than $5.5 billion has been paid to iOS App Store developers.
  • Weekly iPhone sales continue to be negatively impacted by rumors of new products, Oppenheimer revealed. Cook said he believes there is "incredible anticipation" for future products that has affected sales, though the exact impact is "difficult to sort out."
  • "We could not be more confident in our new product pipeline," Oppenheimer said, though he unsurprisingly declined to offer any specifics or details.

Apple's iPhone business
iPhone growth was 28 percent year over year with 26 million units. Distribution is now at over 250 carriers in over 100 countries.
iPhone channel inventory ended the quarter at 4-6 weeks.
$16.2 billion in recognized revenue from iPhone sales, an increase of 22 percent from a year ago.
Oppenheimer highlighted iPhone adoption in the enterprise, saying it helps businesses and employees be more productive.
Apple's iPad business
iPad sales grew 84 percent to 17 million. Apple is now selling iPad in 97 countries.
Recognized revenue was $9.2 billion in the quarter, an increase of 52 percent from a year ago.
About 3.2 million units were in the channel at the end of the quarter, leaving Apple at 4-6 weeks of inventory.
Interest in the new iPad was "high," but sales of the reduced-price iPad 2 in the K-12 education market were particularly strong, Oppenheimer said.
Apple's Mac business
The June quarter was the best ever for U.S. education institution sales of the Mac.
Portables represented nearly three quarters of all Mac sales for the quarter.
Apple ended the quarter with 3-4 weeks of Mac channel inventory.
Mac sales were hurt by the timing of the portable announcement last quarter, Cook said, as new products were announced with less than three weeks remaining in the quarter.
Prior to WWDC, weekly Mac sales were running below the previous year, but after WWDC, new MacBook Pros and MacBook Airs drove sales growth and pushed Apple into a positive.
MacBook Pro with Retina display was "incredibly well received." Apple hasn't yet met demand, but Cook said he expects they will do so next month.
Apple's App Stores, iTunes, iCloud, and Apple TV
iTunes had sales of over $1.8 billion, iTunes Store launched in over 12 countries including Hong Kong, Singapore and Taiwan last month.
Apple TV sales were 1.3 million in the quarter, up over 170 percent year over year. 4 million units in the fiscal year, which Cook called "pretty incredible."
Apple's iPod business
iPod touch accounted for more than half of iPods sold, and iPod sales were higher than Apple expected.
Ended quarter with 4-6 weeks of iPod channel inventory.
Apple's retail business
Revenue at retail stores was $4.1 billion, an increase of 17 percent from a year ago. Apple's stores sold 791,000 Macs.
9 new stores opened during the quarter. There are now 373 total Apple stores, with 123 of them outside of the U.S.
Average revenue per store was $11.1 million.
Apple's regional business segments
Asia-Pacific grew 25 percent in the quarter. Greater China represents about a third of Apple's growth in the region.
China's revenue was $5.7 billion, a 48 percent year over year increase.
Cook said Apple was "incredibly pleased" with the performance of the iPhone greater China. Sales were up more than 100 percent year over year.
Europe was "essentially flat" year over year for the iPhone, Cook said. He highlighted that region as the biggest disappointment.
U.K. was relatively solid with 30 percent growth, but France, Greece and Italy were singled out as "particularly poor," while Germany saw just single-digit growth for the quarter.

Why are you lying? Apple missed revenue big time

http://www.bloomberg.com/news/2012-07-24/apple-falls-short-of-analysts-expectations-amid-iphone-slump.html

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post #18 of 96
Quote:
Originally Posted by MJ1970 View Post
Understood. However, how do you know what these benefits and losses are from Apple's perspective?

 

Apple cares about the user experience more than anything. From a usability perspective, a 7" tablet is worse at everything than a ~10" one.

 

This is just like the netbook craze five years ago. Companies made 7" laptops. No one actually wants a 7" laptop, since they're unusable. So netbooks got bigger. They made 8" and 9", and finally netbooks settled around 10" before becoming completely worthless. Let's ISOT Apple away in… 2007. I figure netbooks would have only gotten even bigger until they weren't even netbooks anymore, but rather very cheap, very poorly hardware'd laptops.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #19 of 96

Co guides Q4 margins to 38.5% vs 43.1% consensus. Co expects this decline to come from fall transition and the impact of the stronger US dollar.

 

What I conclude from this is that a smaller iPad with lower margins is coming. 

post #20 of 96
Quote:
Originally Posted by Tallest Skil View Post

So post some numbers, otherwise you've no argument.

 

I don't have any and you know that full well. Bu then neither do you. We're both interpreting subjective statements from the call. Get off your fucking high horse.

 

 

 

Quote:
Originally Posted by Tallest Skil View Post

Because that doesn't follow from what they've done previously? They didn't make a smaller iPhone without data or apps, they took last year's model and made it cheaper. Same with the iPad.

 

Except it is what they've done with other products like iPod and MacBooks, iMacs, etc. You've picked the one product that fits your thesis for comparison and ignored the others.

 

 

Quote:
Originally Posted by Tallest Skil View Post

And when the 4th iPad comes out next spring and the iPad 2 is $299, all this 7" crap will peter out.

 

Maybe you're right. I'm just baffled by why you seem to be so concerned about being right.

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post #21 of 96
Quote:
Originally Posted by Tallest Skil View Post

 

You have to weigh the single 'benefit' of a smaller device against the losses.

 

It makes no sense. There are far too many losses.

What is the single benefit and what are the losses?

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post #22 of 96
Quote:
Originally Posted by Tallest Skil View Post

Apple cares about the user experience more than anything. From a usability perspective, a 7" tablet is worse at everything than a ~10" one.

 

Agreed, but then you seem to presume Apple doesn't have a solution for that.

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post #23 of 96
Quote:
Originally Posted by MJ1970 View Post
Agreed, but then you seem to presume Apple doesn't have a solution for that.

 

They do have a solution. The 10" iPad. And making old versions cheaper fills in the gaps.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #24 of 96
Quote:
Originally Posted by Tallest Skil View Post

They do have a solution. The 10" iPad.

 

How cute.

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post #25 of 96

Quote:
Originally Posted by daylove22 View Post

Why are you lying? Apple missed revenue big time

http://www.bloomberg.com/news/2012-07-24/apple-falls-short-of-analysts-expectations-amid-iphone-slump.html

Uh, a company doesn't "miss" because it doesn't meet the made up numbers of random external people. A "miss" is when the company misses from its own guidance. And Apple most assuredly did not.

post #26 of 96
Quote:
Originally Posted by mstone View Post
What is the single benefit and what are the losses?

 

Well, portability, of course. Even though people won't be pocketing a 7" iPad, it's decidedly more portable.

 

Of course you lose screen size, real estate, battery life, processing power, and through the latter, software compatibility.

 

Quote:
Originally Posted by MJ1970 View Post
How cute.

 

I agreed with them before, but now I fully understand why the other mods want to get rid of PoliticalOutsider. You people are just mean to one another.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #27 of 96
Quote:
Originally Posted by Tallest Skil View Post

I agreed with them before, but now I fully understand why the other mods want to get rid of PoliticalOutsider. You people are just mean to one another.

 

WTF?!

 

You're the one a) being a smart ass ("They have a solution. The 10" iPad"). I just returned the favor; and, b) telling me I "have no argument" because I have no numbers (which you don't either)...while we are both simply expressing opinions and interpretations.

 

For ****'s sake.

 

You HAVE to be right about the smaller iPad for some reason and seem to be willing to be a jerk about it to anyone that has the temerity to disagree with you.

 

It's just fucking product strategy for goodness' sake.

 

:rolleyes:

 

:wow:

 

P.S. Why don't they then? You don't want my eyeballs on your site, fine.

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post #28 of 96
Quote:
Originally Posted by MJ1970 View Post
P.S. Why don't they then? You don't want my eyeballs on your site, fine.

 

Because we're afraid you'll do exactly what you're doing right here, right now, but instead of being off-thread-topic-but-still-relevant-to-the-site, it would be bringing politics into every thread.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #29 of 96
Quote:
Originally Posted by Tallest Skil View Post

Because we're afraid you'll do exactly what you're doing right here, right now, but instead of being off-thread-topic-but-still-relevant-to-the-site, it would be bringing politics into every thread.

 

You're whining because I disagreed with you about your smaller iPad predictions and claims.

 

:wow:

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post #30 of 96
Quote:
Originally Posted by MJ1970 View Post
You're whining because I disagreed with you about your smaller iPad predictions and claims.

 

Nope. That's not what I'm talking about anymore.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #31 of 96
Quote:
Originally Posted by Tallest Skil View Post

Nope. That's not what I'm talking about anymore.

 

Well then take it private and explain it.

 

Everything is here for you and everyone else to see: You went smart ass, then got snippy when I went smart ass back to you.

 

 


 

Back on topic...

 

I personally don't really have a hard prediction about a smaller iPad. Apple's past product strategy has taken both paths. Apple has also done things that they had previously dismissed. It's anyone's guess at this point. If they see competition eating from below and can't figure out a way to get lower cost 10" iPads into customer's hands, they might try the 7".

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post #32 of 96
Quote:
Originally Posted by focher View Post

The purchasing public is actually starting to say that it does also want the choice of a smaller tablet, and the longer Apple leaves that price umbrella in place the more likely a competitor is going to field a viable product.

How do you know is!? Is that pulled out of.... thin air, or can you back that up?
post #33 of 96
Quote:
Originally Posted by Tallest Skil View Post

 

Well, portability, of course. Even though people won't be pocketing a 7" iPad, it's decidedly more portable.

 

Of course you lose screen size, real estate, battery life, processing power, and through the latter, software compatibility.

 

My perceived benefits:

Portability (fits in jacket pocket, backpack, women's 'pocket book')

Easier to read on train because it is smaller

Fits in car glove box

Can be used for car navigation, easier to see than tiny iPhone 

Lighter weight

Easier to type on and web browsing compared to iPhone

Cheaper (not that I care since I want a fully loaded version)

Better size for young children

Competes against Nexus 7

Ideal as secondary iPad, offers move versatility 

 

I could think of more but I have to leave now

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post #34 of 96
Quote:
Originally Posted by AppleGreen View Post

Co guides Q4 margins to 38.5% vs 43.1% consensus. Co expects this decline to come from fall transition and the impact of the stronger US dollar.

What I conclude from this is that a smaller iPad with lower margins is coming. 

Or, other new products. Margins are always lower at the early stages of a product's life cyle.

They're also perhaps expecting the dollar to depreciate.
post #35 of 96
Quote:
Originally Posted by focher View Post

The purchasing public is actually starting to say that it does also want the choice of a smaller tablet, and the longer Apple leaves that price umbrella in place the more likely a competitor is going to field a viable product. The reviews of the Nexus 7 are suggesting that could be now. I'll give you credit for consistency, but Apple has shown itself to be more open to competing in segments where it previously declared it would not ... once they feel they have a compelling product to offer.

Quote:
Originally Posted by jfc1138 View Post

Portability. So a smaller one would be a nice option as a compromise between a phone and the current large pad.

Quote:
Originally Posted by MJ1970 View Post

I interpreted this differently.

I read this to say that the lower cost iPad was doing very well.

Particularly, the full statement was:



This seems to be saying that the new iPad is doing well but the lower cost one may be doing better.

The best (or only) pathway to lower cost iPad might be smaller iPads. Maybe not. Apple seems to have found ways to keep previous generations (e.g., iPhone) online at lower cost. Perhaps this will be the route they take. I think they'd like to try to get an iPad down closer $200 and pretty much end any traction any competitors might be gaining.

Quote:
Originally Posted by focher View Post

The issue is around the concept of a "price umbrella". At a $399 entry point, the problem is that Apple created a tablet market and competitors finally figured out that they can come in at the lower price points (now at $199 with the Nexus 7) and capture market share without competing with Apple. It was one thing when there was no traction for the other products, but Apple can't realistically leave that segment unanswered because it will just dilute the iPad's domination of the tablet market - or at least make it look diluted when you look at market share numbers.

I'm not suggesting Apple would enter that segment just to be in that segment. I firmly believe Apple doesn't enter a market or segment unless it feels it is going to field the best product in that segment. But if they are confident of their product offering, they aren't going to fail to make the right business decision out of some allegiance to a past stated "rule".

How do we know people aren't buying the Nexus because of the price? Apple could just keep the iPad 2 around next cycle and drop the price further to $299 which could address the low end market.

I'm not for or against an iPad Mini but I do find it ridiculous that people want premium features such as LTE Retina A6 etc. all for $199.

Technically costs to produce an iPad Mini would almost be the same as the regular iPad (especially considering the rumor is that it'll only be 1.85 inches smaller) so if Apple were to put all of those features in it, it would either be almost the same price as the regular iPad or the margins would suffer which would kill profits (add in the fact that the Mini will cannibalize regular iPad sales).

For Apple to reach the $199 price it'd probably have to have 3GS internals and a low res screen. Would anyone want to buy a Mini like that?
post #36 of 96
Quote:
Originally Posted by Tallest Skil View Post

 

They do have a solution. The 10" iPad. And making old versions cheaper fills in the gaps.

 

And what will you do if they DO come out with s smaller iPad? Will you at least publically admit to being fucking wrong, since you're so damn certain they would never do it? Or will you just pretend nothing happened? Or maybe announce you're done with the company? It's one thing to say you'd never buy a smaller iPad. It's quite another to be so adamant that Apple will never make one. When they do, I hope you have the integrity and balls to make a long apology post, about how you were wrong to constantly belittle and mock all those here who did not subscribe to your religious thinking and rigid ideology. The're enough signs this product might be coming out for you to tone down the false confidence a bit. 

post #37 of 96
Quote:
Originally Posted by anantksundaram View Post


Or, other new products. Margins are always lower at the early stages of a product's life cyle.
They're also perhaps expecting the dollar to depreciate.

A 7% decline in gross margins is pretty significant.  That means Apple is willing to sell at lower prices so that there isn't much of a price umbrella for competition to succeed.  I can see them offering a 7.85" iPad at $200 to $250 level to prevent Google and Amazon from succeeding.

post #38 of 96
Quote:
Originally Posted by Tallest Skil View Post

 

Well, portability, of course. Even though people won't be pocketing a 7" iPad, it's decidedly more portable.

 

Of course you lose screen size, real estate, battery life, processing power, and through the latter, software compatibility.

 

 

They can put the 32nm A5 in which will reduce power consumption and give the same performance. The smaller screen will also consume significantly less power. Even though the battery will be smaller, the capacity should easily be offset by the screen and new A5. Result is the same performance and same battery life.

 

It would be better for reading e-books because of the weight. It would be better for kids in early grades (like K-3) because of the smaller size. You could mount it in your car as a NAV much easier than the regular iPad. It would be a good way to get into gaming and challenge the Wii U or Vita. It would be something parents are a little less wary to give to kids because of the lower price.

 

I'm not sure I'd use one. But people are buying smaller tablets so there is a market for them. If Apple made a smaller iPad they'd deal a serious blow to their competitors who only seem to have success in this market and can't compete at all against Apple in the 10" tablet space.

Author of The Fuel Injection Bible

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Author of The Fuel Injection Bible

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post #39 of 96
Quote:
Originally Posted by Slurpy View Post
And what will you do if they DO come out with s smaller iPad? Will you at least publically admit to being fucking wrong, since you're so damn certain they would never do it? Or will you just pretend nothing happened?

 

Of course the latter, since any time anyone says Apple will do something and they don't, there's no recognition thereof. This has nothing to do with integrity or chutzpah whatsoever. I see no logical reason for the existence of a smaller iPad, just as I saw no logical reason for the existence of a smaller iPhone. If Apple thinks there is one, they're welcome to try. They've been quite wrong about a desire/market/purpose for some products before.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #40 of 96

Wasn't there any statement about the supposed imminent dividend?

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