Apple's 'flypaper-like' ecosystem viewed as an undervalued asset

Posted:
in iPhone edited January 2014
The ecosystem supporting Apple's products can be deceptively sticky, akin to flypaper, which is why one analyst believes its value has been underestimated by the investment community.

The revelation came to Brian Marshall of ISI Group this weekend, when he went to Best Buy with the intent of buying Samsung's new flagship smartphone, the Galaxy S4. Though he was prepared to make the switch, drawn by the larger display of the Galaxy S4, White found that he got "cold feet" at the last minute.

iPhones
Apple's current iPhone lineup.


The main reason, he said, was Apple's "flypaper-like" ecosystem. Marshall just couldn't imagine abandoning the platform he's utilized for about 6 years, or almost one-seventh of his entire life.

"Every single day, I use iOS, iTunes, iBookstore, App Store, FaceTime, etc. and sync with other Apple products," he said, equating his reliance on Apple's ecosystem to "muscle memory."

In Marshall's view, the "stickiness" of Apple's ecosystem is one of the most undervalued components of the company's business. In his case, the value of Apple's platform was great enough to overrule his desire for a larger smartphone display.

Marshall still believes that Apple has a "big void" in its product lineup by not offering a big-screen iPhone. He believes larger displays can offer a superior experience, particularly with regard to typing.

iPhone Plus
Mockup of iPhone with 4.94-inch screen, created by Marco Arment.


Despite the strength of the iPhone ecosystem, Apple executives "have to give customers what they want," the analyst said Monday. In his eyes, customers simply want a new iPhone with a 5-inch display.

For now, Marshall remains an iPhone 5 user, though he's hopeful Apple will launch a big-screen iPhone in the next 6 to 9 months. ISI Group has maintained its "buy" rating for AAPL stock with a price target of $600.

In addition to Marshall's assessment, businessman and television personality Donald Trump weighed in through his official Twitter and Facebook accounts on Monday, calling on Apple to release a big-screen iPhone:

I have a lot of @apple stock--- and I miss Steve Jobs. Tim Cook must immediately increase the size of the screen... fb.me/Hjj8Y27p

— Donald J. Trump (@realDonaldTrump)

Apple Chief Executive Tim Cook was asked about the possibility of a big-screen iPhone during his company's quarterly earnings conference call last week. He hinted that such a device could be in the cards, but indicated that Apple would not be interested in selling a so-called "iPhone plus" until certain "trade-offs" could be avoided.

"Some customers value large screen size," Cook said. "Others value also other factors such as resolution, color quality, white balance, brightness, reflectivity, screen longevity, power consumption, portability, compatibility with apps and many things.

"Our competitors had made some significant trade-offs in many of these areas in order to ship a larger display. We would not ship a larger display iPhone while these trade-offs exist."
«134

Comments

  • Reply 1 of 72

    Quote:


    I have a lot of @apple stock--- and I miss Steve Jobs. Tim Cook must immediately increase the size of the screen... fb.me/Hjj8Y27p


    — Donald J. Trump (@realDonaldTrump)


    April 29, 2013


    The above lines are like... if you dont get me a big screen iPhone, I will sell off my shares.  And, Tim Cook is not doing it, had Steve Jobs been alive, he would have done it. :)


     


     


     


     


    Quote:


    "Our competitors had made some significant trade-offs in many of these areas in order to ship a larger display. We would not ship a larger display iPhone while these trade-offs exist."



    This is really a truth.  My friend's Samsung Galaxy SIII shows altogether different colors. We copied our SLR photos to my iPhone and his galaxy.  It shows colors very differently and it is sh!t. When you swipe them to next photo... I can see a lag in the screen. But not on iPhone.  If iPhone is that big, it will suffer the same problem, it definitely needs hardware acceleration as he mentioned.

  • Reply 2 of 72
    crowleycrowley Posts: 10,453member


    Pretty crappy analogy.  Flies don't give flypaper a ~90% customer satisfaction rate.

  • Reply 3 of 72
    I agree with his sentiments 200%. For many of us slightly more mature citizens even the iphone 5 screen is too small to use and Siri is not as good as it should be. I I would love to have a phone like the Note which is an ideal size but had the same issues as Brian Marshall. In addition, price wise the Note is more expensive than the iphone 5 as the upfront cost in the UK is the same if not higher and the resale value a fraction of the iphone 5. I will hold onto this phone until Apple make a bigger screen but may well buy an iPad mini as a more portable alternative around town. I use my iPad fro reading large documents and the normal size is ideal for that although a little heavy to hold on the tube (1 hour into work if I am heading for the City)
  • Reply 4 of 72
    philboogiephilboogie Posts: 7,675member
    Nice for him to have his 'revelation', but I don't think the analysts are taking the AR and display pixels, the SDK and the sheets that these displays are cut from into consideration. Merely shouting for 'a larger iPhone display' comes across as neglecting to understand how things are made, and why. Quite uninformed, this analyst.
  • Reply 5 of 72
    solipsismxsolipsismx Posts: 19,566member
    crowley wrote: »
    Pretty crappy analogy.  Flies don't give flypaper a ~90% customer satisfaction rate.

    The problem with any fly analogy is that flies give a 100% satisfaction rate to manure.
  • Reply 6 of 72

    Quote:

    Originally Posted by mgdance View Post



    I agree with his sentiments 200%. For many of us slightly more mature citizens even the iphone 5 screen is too small to use and Siri is not as good as it should be. I I would love to have a phone like the Note which is an ideal size but had the same issues as Brian Marshall. In addition, price wise the Note is more expensive than the iphone 5 as the upfront cost in the UK is the same if not higher and the resale value a fraction of the iphone 5. I will hold onto this phone until Apple make a bigger screen but may well buy an iPad mini as a more portable alternative around town. I use my iPad fro reading large documents and the normal size is ideal for that although a little heavy to hold on the tube (1 hour into work if I am heading for the City)


    Idle size like Note?  Hope, you are joking.

  • Reply 7 of 72

    Quote:

    Originally Posted by AppleInsider View Post



    Apple executives "have to give customers what they want," the analyst said Monday. In his eyes, customers simply want a new iPhone with a 5-inch display.


    "In his eyes"? "They "simply want"? Wow. Said with such authority too. image

  • Reply 8 of 72

    Quote:

    Originally Posted by mgdance View Post



    I agree with his sentiments 200%. For many of us slightly more mature citizens even the iphone 5 screen is too small to use and Siri is not as good as it should be. I I would love to have a phone like the Note which is an ideal size but had the same issues as Brian Marshall. In addition, price wise the Note is more expensive than the iphone 5 as the upfront cost in the UK is the same if not higher and the resale value a fraction of the iphone 5. I will hold onto this phone until Apple make a bigger screen but may well buy an iPad mini as a more portable alternative around town. I use my iPad fro reading large documents and the normal size is ideal for that although a little heavy to hold on the tube (1 hour into work if I am heading for the City)


    I would love a phone like the galaxy note but decent, running apps made for it, an awesome ecosystem, amazing build quality, great screen, a marriage of hardware and OS that would make possible great performance for a 700$ device. I would really buy a phone like this and spend almost all of the time i spend on my Air on it.


     


    Only Apple can do that, but they chose not to.


     


    It's such a shame that the galaxy note is so bad for the price when compared to an iPhone. At least it still is better than that S4, even on screen quality.

  • Reply 9 of 72
    512ke512ke Posts: 782member
    I don't understand as a typical ignorant consumer what is the big deal about making a iPhone with a bigger screen. The iPhone 5 already stretched the 4's screen vertically. Just stretch it now also horizontally. Why is this so hard? Answer: it's not. Apple just doesn't want to do it.
  • Reply 10 of 72

    Quote:

    Originally Posted by 512ke View Post



    I don't understand as a typical ignorant consumer what is the big deal about making a iPhone with a bigger screen. The iPhone 5 already stretched the 4's screen vertically. Just stretch it now also horizontally. Why is this so hard? Answer: it's not. Apple just doesn't want to do it.


    That.


     


    And their app policy. Devs use absolute terms when developing apps, which in turn give a much better experience for users, unlike what happens on Android. So it would demand more time unless they find a way to update Xcode to make it simpler.


     


    Then it is about cost. Imagine a big screen (phone) done right, with great build quality performance and features. That does not exist (at all) and would be expensive.

  • Reply 11 of 72
    slurpyslurpy Posts: 5,385member

    Trump has shown he's a complete fucking raging lunatic, so based on that tweet Apple shouldn't change the screen size at all. And i seem to recall Trump bashing the hell out of Steve Jobs on several occasions, so he can go **** himself with the whole "I miss SJ" shtick.
  • Reply 12 of 72
    gtrgtr Posts: 3,231member
    solipsismx wrote: »
    The problem with any fly analogy is that flies give a 100% satisfaction rate to manure.

    Dude, I'll have you know that your statement is a load of shit...
  • Reply 13 of 72
    I think what drives analysts (and Wall Street in general) crazy is how careful Apple is with their brand. If it was up to Wall Street Apple would be slapping iOS on everything; first it would be a 5"phone, then why not a 6" phone? A 6.1" phone! TVs! And car dashboards! Refrigerators! Waffle makers!

    It might might make for some nice short term profits, but it would destroy the company.
  • Reply 14 of 72
    solipsismxsolipsismx Posts: 19,566member
    chandra69 wrote: »
    Idle size like Note?  Hope, you are joking.

    In an alternate reality there is a rapper named Sir-Text-A-Lot that had a popular song about big ass phones.
  • Reply 15 of 72
    dmarcootdmarcoot Posts: 191member
    How in the world is this considered news worthy?
  • Reply 16 of 72
    It's coming...and when Apple does it it'll be the best out there...just like all their other devices.
  • Reply 17 of 72
    paxmanpaxman Posts: 4,729member

    Quote:

    Originally Posted by AppleInsider View Post

    The revelation came to Brian Marshall of ISI Group this weekend, when he went to Best Buy with the intent of buying Samsung's new flagship smartphone, the Galaxy S4. Though he was prepared to make the switch, drawn by the larger display of the Galaxy S4, White found that he got "cold feet" at the last minute.


     


    Really? If after 6 years of using Apple products Brian Marshall went to Best Buy to jump ship only to realize right there, in the store, that...


     


    Quote:


    "Every single day, I use iOS, iTunes, iBookstore, App Store, FaceTime, etc. and sync with other Apple products," he said, equating his reliance on Apple's ecosystem to "muscle memory.



     


    ... I am forced to question this guy's smarts. 

  • Reply 18 of 72
    robin huberrobin huber Posts: 3,993member
    Follow up tweet by Trump said "the iPhone must be gold plated. Anything that has class is gold plated."
  • Reply 19 of 72
    philboogiephilboogie Posts: 7,675member
    Some would say "I don't give a flying frick"
  • Reply 20 of 72

    Quote:

    Originally Posted by Crowley View Post


    Pretty crappy analogy.  Flies don't give flypaper a ~90% customer satisfaction rate.



    Really funny, Crowley. Made me laugh! :)

Sign In or Register to comment.