Originally Posted by trumptman
It isn't bias. The market for this phone is really clear in my mind and I'm getting very worried for Apple with this latest Google response. It's beginning to feel a little like 1995 around here again.
Apple absolutely needs LTE in their flagship phone of which they produce one a year and also it is the phone that justifes fat margins and a minimum price of $650 per phone.
The Nexus line has not been a true flagship line but more like a baseline platform target for where Android should minimally be for the next year.
Apple has had two quarters now where the first hit their targets but did not hit their whisper number and now a quarter where they just outright didn't hit their own targets. It is clear that the slowing of growth with regard to Apple is OUTSIDE of the United States. In the United States, subsidy model helps hide the true cost of buying an iPhone. Outside the U.S. it is a completely different story. This phone is clearly targeted for stunting and stopping the growth of Apple outside the U.S. It is $300-$350 out the door, barely half the price of an iPhone. It has the latest 3G standard but doesn't sweat having a divided 4G standard.
It is clear U.S. carriers are using 4G/LTE to push people into more expensive plans, take away their data options, lock phones to their network again, etc.
The Samsung Galaxy S3 OUTSIDE the U.S. has 3G and a quad-core processor. Within the U.S. it has a dual-core and LTE. Samsung has had no problem selling them worldwide.
Google's eco-system is inferior to Apple's but they are now beating Apple on price, beating them on most specs and it appears their OS is at least on par if perhaps not better depending upon your view.
That doesn't mean Apple dies overnight. It doesn't mean Apple has no momentum to sustain them.
It does mean we should be concerned. Apple has already fired their holiday season shot. This isn't six months later and we all don't mind waiting until close to Christmas knowing that Apple will produce something amazing again.
This....this is six days later.
Apple didnt miss any of there guidance, but the beats are slowing down indeed.
2010 Q1 (Ending 12/31/10) Guidance = $4.80; Actual = $6.43;(Beat = 40.0%)
2011 Q2 (Ending 3/31/11) Guidance = $4.90; Actual = $6.40; (Beat = 30.6%)
2011 Q3 (Ending 6/31/11) Guidance = $5.07; Actual = $7.79; (Beat = 53.6%)
2011 Q4 (Ending 9/24/11) Guidance = $5.50; Actual = $7.05 (Beat = 28.2%)
2012 Q1 (Ending 12/31/11) Guidance = $9.30; Actual = $13.87 (Beat = 49.1%)
2012 Q2 (Ending 3/31/12) Guidance = $8.50; Actual = $12.30 (Beat = 44.7%)
2012 Q3 (Ending 6/30/12) Guidance = $8.68; Actual = $9.32 (Beat = 7.4%)
2012 Q4 (Ending 6/30/12) Guidance = $7.65; Actual = $8.67 (Beat = 13.3%)
I think the ipad 4 update was to counter that nexus 10 tablet. Apple is on the defensive in the tablet space. But the price are very agressive, not easy for Apple to counter this without hurting there margins. I still think Apple ecosystem, build quality and design are better and it may keep strong sales going on. They are after all, selling every phone and tablet they can make.
Apple is going to see operating margins improvement in Q2, it may pass that to the consumer by lowering there price. I dont think they will have a choice actually.
Edited by herbapou - 10/29/12 at 12:00pm