Apple executives say iPhone 3GS, Kindle Fire will expand interest in iOS devices

Posted:
in iPad edited January 2014
JP Morgan analysts who met with top Apple executives note that the company's leadership views both its own iPhone 3GS and Amazon's Kindle Fire as devices that will attract customers to iOS as they "gravitate to more feature-rich experiences."



Analyst Mark Moskowitz issued his note after meeting with Apple's chief executive Tim Cook and chief financial officer Peter Oppenheimer, describing a the meetings focal points as "longer term in nature."



Moskowitz said he left the meeting "confident in our view that Apple can continue offering feature-rich, user friendly product experiences to sustain the company?s above-peer revenue and earnings growth power."



Prior to the meeting, JP Morgan had increased its fourth calendar quarter iPhone sales estimates from 25 million to 28 million, while the firm "slightly lowered" its iPad sales estimates.



After meeting with Apple's executives, Moskowitz wrote, "our view is that the iPhone raise is reasonable and that our iPad trim might have been too cautious."



iPhone 4S sales not slowing, iPhone 3GS finding new customers



Moskowitz expressed the view that iPhone sales were not losing momentum, reiterating the view that iPhone 4S sales had not plateaued since the new model's launch.



The note also stated that Apple views the iPhone 3GS, its first free model, as "a good dynamic for the iPhone family," observing that while it is not a top seller, it is "introducing Apple?s products to a wider audience of customers."



Kindle Fire not pressuring iPad, may expand tablet interest



Regarding iPad sales, Moskowitz wrote that "Apple appeared confident in its position of strength in the tablet market continuing," adding that the company is not too concerned about low priced competitors.







"If anything, we think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences," Moskowitz wrote. "In other words, we think that Apple is not seeing much pressure from lower-priced tablets, yet."



Moskowitz also commented on Apple's plans for its cash, noting that the company focused its cash discussions "around its investments in product pipeline, supply chain, and retail footprint," rather than entertaining ideas of a stock buyback or didivend payout.



"In our view, we think that the use of cash issue has received too much attention of late, due to investor concerns over slowing tablet sales," Moskowitz said, adding, "we expect that investors will begin to refocus on the revenue and earnings power of Apple once the December quarter is in the books and there are no signs of deteriorating sales momentum."
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Comments

  • Reply 1 of 41
    solipsismxsolipsismx Posts: 19,566member
    I'm glad I'm not the only who sees this.
  • Reply 2 of 41
    daharderdaharder Posts: 1,580member
    "If anything, we think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences" Moskowitz wrote.



    What?



    If anything, Kindle Fire users will want to secure their Amazon media content (apps, music, books, apps, et al.) investments by moving on to more 'feature rich' Android devices like the Samsung Galaxy Tab or similar.... NOT Apple/iOS Devices.



    It's completely nonsensical to believe that a Kindle Fire owner would just all of a sudden decide to toss much of the aforementioned content just to move to an IOS-powered iPad.



  • Reply 3 of 41
    freerangefreerange Posts: 1,585member
    Quote:
    Originally Posted by DaHarder View Post


    "If anything, we think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences" Moskowitz wrote.



    What?



    If anything, Kindle Fire users will want to secure their Amazon media content (apps, music, books, apps, et al.) investments by moving on to more 'feature rich' Android devices like the Samsung Galaxy Tab or similar.... NOT Apple/iOS Devices.



    It's completely nonsensical to believe that a Kindle Fire owner would just all of a sudden decide to toss much of the aforementioned content just to move to an IOS-powered iPad.







    Well aren't you the genius. Since you can access amazon content on an iOS device your argument makes no sense. eBooks, there is an iOS Kindle app for that. Music from amazon, you can download directly into iTunes. Access the amazon marketplace, there's an Amazon app for that. And of course, Apple devices can access the website as well. No "tossing" required. Duh!
  • Reply 4 of 41
    jexusjexus Posts: 373member
    Quote:
    Originally Posted by DaHarder View Post


    "If anything, we think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences" Moskowitz wrote.



    What?



    If anything, Kindle Fire users will want to secure their Amazon media content (apps, music, books, apps, et al.) investments by moving on to more 'feature rich' Android devices like the Samsung Galaxy Tab or similar.... NOT Apple/iOS Devices.



    It's completely nonsensical to believe that a Kindle Fire owner would just all of a sudden decide to toss much of the aforementioned content just to move to an IOS-powered iPad.



    People are willing to break contracts worth up to $325 to get an iOS device, what makes you think they wouldn't dump a $200 dollar tablet to do the same?
  • Reply 5 of 41
    jungmarkjungmark Posts: 6,664member
    Quote:
    Originally Posted by DaHarder View Post


    "If anything, we think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences" Moskowitz wrote.



    What?



    If anything, Kindle Fire users will want to secure their Amazon media content (apps, music, books, apps, et al.) investments by moving on to more 'feature rich' Android devices like the Samsung Galaxy Tab or similar.... NOT Apple/iOS Devices.



    It's completely nonsensical to believe that a Kindle Fire owner would just all of a sudden decide to toss much of the aforementioned content just to move to an IOS-powered iPad.




    Amazon's Android interface is a lot different than Samsung's, so casual users may not relate the two. In addition, typical android users don't buy apps so there is less money being wasted if they move to iOS. And there are ample Amazon apps for iOS.
  • Reply 6 of 41
    jragostajragosta Posts: 10,473member
    Of course.



    Customer: "This Kindle Fire is pretty nice. Just imagine how it would be if it was large enough for me to be able to read it without a magnifying glass and if it actually worked well - like an iPad".
  • Reply 7 of 41
    solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by Jexus View Post


    People are willing to break contracts worth up to $325 to get an iOS device, what makes you think they wouldn't dump a $200 dollar tablet to do the same?



    What's crazy about his post is he thinks "Kindle Fire owner would just all of a sudden decide to toss" it without any thought or planning to make their next tablet purchase fully featured upgrade.



    These entry level tablet buyers are very likely to find that they just don't need a tablet, like the tablet experience (if Kindle Fire is bad), or want a more compete tablet experience. For this reason Amazon wil need to expand both their OS and the display size along with other engineering upgrades if thy want to keep many from jumping to the iPad with their next tablet purchase.
  • Reply 8 of 41
    postulantpostulant Posts: 1,270member
    Quote:
    Originally Posted by DaHarder View Post


    "If anything, we think that Apple views the Kindle Fire as a device that stands to bring incremental consumers to the tablet market, and here, these consumers could gravitate to more feature-rich experiences" Moskowitz wrote.



    What?



    If anything, Kindle Fire users will want to secure their Amazon media content (apps, music, books, apps, et al.) investments by moving on to more 'feature rich' Android devices like the Samsung Galaxy Tab or similar.... NOT Apple/iOS Devices.



    It's completely nonsensical to believe that a Kindle Fire owner would just all of a sudden decide to toss much of the aforementioned content just to move to an IOS-powered iPad.







    I agree with them. Windows forced me to switch to Macintosh... Even though I had tons of software designed for Windows - I had had enough. And I've never looked back.



    The guy is spot on.
  • Reply 9 of 41
    daharderdaharder Posts: 1,580member
    Quote:
    Originally Posted by FreeRange View Post


    Well aren't you the genius. Since you can access amazon content on an iOS device your argument makes no sense. eBooks, there is an iOS Kindle app for that. Music from amazon, you can download directly into iTunes. Access the amazon marketplace, there's an Amazon app for that. And of course, Apple devices can access the website as well. No "tossing" required. Duh!



    ...and of course all of those Android apps from that Kindle Fire that can so easily be run on iOS devices - Oh Wait!
  • Reply 10 of 41
    daharderdaharder Posts: 1,580member
    Quote:
    Originally Posted by Jexus View Post


    People are willing to break contracts worth up to $325 to get an iOS device, what makes you think they wouldn't dump a $200 dollar tablet to do the same?



    Because smartphones are largely considered near necessities by modern society (as communication devices, etc.), whereas tablets have yet to achieve anywhere near that status, instead looked upon more as luxury devices/toys.
  • Reply 11 of 41
    jexusjexus Posts: 373member
    Quote:
    Originally Posted by DaHarder View Post


    ...and of course all of those Android apps from that Kindle Fire that can so easily be run on iOS devices - Oh Wait!



    I don't think kindle users invest in a noticeable portion of premium Android apps or Any Android apps at all. Chances are if you got a Kindle fire, you would only invest in books and other sort of readable medium, seeing that the whole marketing behind the thing is essentially pointing towards those features, which can easily be transferred to an iOS device.
  • Reply 12 of 41
    daharderdaharder Posts: 1,580member
    Quote:
    Originally Posted by Jexus View Post


    I don't think kindle users invest in a noticeable portion of premium Android apps or Any Android apps at all. Chances are if you got a Kindle fire, you would only invest in books and other sort of readable medium, seeing that the whole marketing behind the thing is essentially pointing towards those features, which can easily be transferred to an iOS device.



    Hmm, Actually... The "whole marketing behind" behind the Kindle Fire is that of a media consumption device, and said media includes "thousands of popular apps and games, including Netflix, Hulu Plus, Pandora, and more"







    My personal Kindle Fire already has 100+ apps, some 65% of which are paid/premium apps, and I'm likely not the only one which such an app library on the Kindle Fire, given that it's so well-suited for running them.



  • Reply 13 of 41
    Quote:
    Originally Posted by DaHarder View Post


    ...and of course all of those Android apps from that Kindle Fire that can so easily be run on iOS devices - Oh Wait!



    Android-using cheapskates don't spend much money on apps, so they won't have very much to lose and besides most of the developers' apps offer a much richer experience on iOS devices. I don't think that every consumer that buys a Kindle Fire is cheap, though. Maybe they just want to experiment to see if they have use for a tablet and the Fire is a low-cost entry. Who knows if they'll notice the shortcomings of the Fire since maybe that'll all they need in terms of features. I'm all for the Kindle Fire if consumers are deciding to purchase that over the higher priced Android tablets running the latest hardware and Android OS. Too bad Apple doesn't come out with a $300 fully-featured 7" iPad to eat into Kindle Fire sales.
  • Reply 14 of 41
    solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by DaHarder View Post


    Hmm, Actually... The "whole marketing behind" behind the Kindle Fire is that of a media consumption device, and said media includes "thousands of popular apps and games, including Netflix, Hulu Plus, Pandora, and more"



    So the apps Amazon prominently displays are the apps that are both subscription-based and available on iOS. You are just as awesome at making a point as you are not posting overly large pictures for no good reason.
  • Reply 15 of 41
    daharderdaharder Posts: 1,580member
    Quote:
    Originally Posted by SolipsismX View Post


    So the apps Amazon prominently displays are the apps that are both subscription-based and available on iOS. You are just as awesome at making a point as you are not posting overly large pictures for no good reason.



    The fact that you consider mere 640x840 pixel pics 'overly large' explains so much as to your obvious bitterness.
  • Reply 16 of 41
    Quote:
    Originally Posted by DaHarder View Post


    ...and of course all of those Android apps from that Kindle Fire that can so easily be run on iOS devices - Oh Wait!



    Oh Wait!, hell its not as though most of the useful Android apps were ported (others copied) from iOS in the first place. Oh Wait again!.
  • Reply 17 of 41
    gg47gg47 Posts: 6member
    Quote:
    Originally Posted by DaHarder View Post


    The fact that you consider mere 640x840 pixel pics 'overly large' explains so much as to your obvious bitterness.



    Now come on you can do better than that. Being constructive, not. And yes overly large pictures are not good manners.
  • Reply 18 of 41
    lmgslmgs Posts: 63member
    Quote:
    Originally Posted by DaHarder View Post


    The fact that you consider mere 640x840 pixel pics 'overly large' explains so much as to your obvious bitterness.



    The Amazon store picture was not 640x840...



    It's clear you just want another toy to play with, on your carpet from the 70's....



    Most people who will buy the Fire are only looking at the price, and once they see how little they get for their $199, they will look elsewhere for their next tablet..



    I wonder just how many of them that are sold, will be returned right after Christmas??
  • Reply 19 of 41
    daharderdaharder Posts: 1,580member
    Quote:
    Originally Posted by LMGS View Post


    The Amazon store picture was not 640x840...



    Picture =/= Screen Capture.



    Know The Difference.



    ...as for the rest of your little post: just you expressing desperation/defeat/fear, and nothing more.
  • Reply 20 of 41
    postulantpostulant Posts: 1,270member
    Lol at "defeat".
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