I take no cue from market analysts and their disappointment in Apple and now Samsung and their speculation on saturation. It's all just that -- speculation -- and greed.
Without information or fact or evidence, the greedy bid up the stock prices, then they make up expectations to support their stock prices so they can sell them to even greedier people.
Neither the mini or nano are "cheap." Those items fill in another category.
Here's what I don't get, Sammy has a plethora of cheap crap phones and its profits are less than expected. How are cheap iPhones going to help Apple? I still think Apple will release a $300-400 iPhone 4ish. Anything lower will hurt Apple more than it helps.
I agree.
Samsung seems to have shipped more phones this quarter but still saw their profits shrink. That probably means the phones they did ship were cheap android feature phones.
The same would happen to Apple if they release a $200 phone.
I'd rather Apple keep their margins high and release their cheaper phone for $300-400 as well.
Neither the mini or nano are "cheap." Those items fill in another category.
Here's what I don't get, Sammy has a plethora of cheap crap phones and its profits are less than expected. How are cheap iPhones going to help Apple? I still think Apple will release a $300-400 iPhone 4ish. Anything lower will hurt Apple more than it helps.
If Apple's going to do that then don't make it from cheap looking candy colored plastic. Who would spend $400 on that?
Samsung seems to have shipped more phones this quarter but still saw their profits shrink. That probably means the phones they did ship were cheap android feature phones.
The same would happen to Apple if they release a $200 phone.
I'd rather Apple keep their margins high and release their cheaper phone for $300-400 as well.
It's hard to release something cheaper yet keep high margins. Apple said the iPad mini had the lowest margins of any Apple device. But with the mini Apple didn't sacrifice quality for the sake of margins. I'm sorry but those candy colored plastic cases look cheap. Not something I would spend $400 or more on. I don't think Apple can play in the low end space yet still expect to get high end like margins.
The big grow segment will be wearable computer and it seems the market placed the bet on Google 'cause they have the best services.
I think in 1 year or 2, big growth item will be wearables, but for now it is still the tablet. Apple has 1 year or 2 to get their wearable perfected, while they totally own tablets in the mean time.
Think about iPhone - it uses all the latest technology, cutting edge stuff, and still too big to wear. Wearables not ready yet...
You are correct -- If you consider a wearable device as an all-in-one replacement for an iPhone...
But all the wearable device [really] needs to do is conveniently provide voice/audible I/O and Control to a companion iOS device such as an iPad Mini, iPad or iPhone -- elsewhere on your person or in your kit.
When on the go, I currently take an iPhone 5 and an iPad 4.
I would prefer a wearable device and an iPad Mini.
If I need to make or receive a phone call (seldom) I would just interface the wearable iDevice... the iPad Mini would stay where it is (lap, holster, backpack. etc.)
If I need to augment the phone call (FaceTime, Maps, etc.) or text I would use the iPad Mini.
For most non-phone uses I would use the iPad Mini.
I think in 1 year or 2, big growth item will be wearables, but for now it is still the tablet. Apple has 1 year or 2 to get their wearable perfected, while they totally own tablets in the mean time.
Think about iPhone - it uses all the latest technology, cutting edge stuff, and still too big to wear. Wearables not ready yet...
If the phone is in my pocket, does it count as wearing?
I think, at most, the iPhone in your pocket counts as wearing -- if you can use it while "wearing it in your pocket"!
The iPhone accounts for half of Apple sales, but likely more than half of Apple's profit as it's the product with highest margin. Whether it approaches 70% is a question that only Apple management knows.
The high end smart phone market is quickly reaching saturation. Those in the developed world who can afford it already had one. The growth will be in the low and mid-end tiers, which Apple is sorely lacking. I don't think Apple will ever chase the cheap crowd, it's not their DNA. But the mid-tier phones, those that cost $300 - $400, have a huge market that Apple so far is leaving to the Android vendors.
You misunderstanding the phone market, the iPhone is very far from being a very high margin product. Too much patent and licence fee are attached to any cell phone technology. Apple like everyone else has to pay big bucks for its 3G-LTE modem and other technologies integrated in phones these day, this is why carriers started to subsidize devices to their clients unwilling to pay the real price of it.
The real cash cow for Apple is not their products anymore but their services, the iTunes Stores and the whole iOS ecosystem is where Apple got their money from.
It's hard to release something cheaper yet keep high margins. Apple said the iPad mini had the lowest margins of any Apple device. But with the mini Apple didn't sacrifice quality for the sake of margins. I'm sorry but those candy colored plastic cases look cheap. Not something I would spend $400 or more on. I don't think Apple can play in the low end space yet still expect to get high end like margins.
I think they should maintain higher margins on the phone because if the cheaper iPhone cannibalizes the more expensive just a little bit than that would throw off Apple's quarterly margins completely.
"Though Samsung Electronics reported a record operating profit for its June quarter, the number still came in below analysts' expectations, sending the company's stock tumbling on Friday."
Just like Apple. But will we start seeing tech blogs lamenting that Samsung has lost its mojo? Will we see articles instructing Samsung as to what it must do to survive? Will a chorus of wagging tongues start demanding that Samsung's CEO be replaced? Will the term"beleaguered" start to be used when referring to Samsung? Will there be cries of "no innovation" flying around?
I think we already know the answers to those questions don't we.
I take no cue from market analysts and their disappointment in Apple and now Samsung and their speculation on saturation. It's all just that -- speculation -- and greed.
Without information or fact or evidence, the greedy bid up the stock prices, then they make up expectations to support their stock prices so they can sell them to even greedier people.
Investors are indeed a fickle lot. Two companies bashed for record profits. Par for the course I guess.
The iPhone accounts for half of Apple sales, but likely more than half of Apple's profit as it's the product with highest margin. Whether it approaches 70% is a question that only Apple management knows.
The high end smart phone market is quickly reaching saturation. Those in the developed world who can afford it already had one. The growth will be in the low and mid-end tiers, which Apple is sorely lacking. I don't think Apple will ever chase the cheap crowd, it's not their DNA. But the mid-tier phones, those that cost $300 - $400, have a huge market that Apple so far is leaving to the Android vendors.
Apple has several problems to deal with.
1. They don't have NTT and China Mobile signed up yet. Obviously, they are both holding out as they and Apple go through their respective negotiations. I'm sure Apple will sign both of them up at some point in time, which would definitely increase Apple's market share on a global level and Apple will see increased sales and revenues from the iPhone product line based on these two.
2. Apple has only announced basically one new model on a yearly basis, when they should be announcing more than that. I think Apple has room to replace their existing iPhone 4 and 4S with an updated model that is their "low end" model which maybe Apple is planning on doing. The other is getting a bigger screen phone, which is seriously hampering their growth. I personally think that the market is definitely split up into three definite screen sizes and Apple needs to constantly address this.
3. There is obviously a market for the low end smartphone market that Samsung seems to have capitalized on where the unlocked version is $150 retail, $99 on sale but there is no money in that, Apple most likely is not stupid enough to make a phone that sells tens of millions and basically makes hardly anything from them due to factoring the costs of warranty issues and support calls in supporting a super low end product. It's similar to the PC industry selling $400 laptops. THERE IS NO MONEY IN IT, SO WHY BOTHER. It's a cheap way of buying market share.
4. iOS obviously needs an fresh update, which it could have used last year, but obviously we have to wait until iOS 7 is finished, but so far, I personally like what I see and know that iOS 8 will just add even more features.
5. I don't know how much pent up demand Apple has for their fingerprint ID technology to get released. Individuals may not care as much as large customers, government, and military customers might be salivating for this technology in smartphones and tablets. So, this is something we have to wait to see how much impact that's happening.
On one hand, it's easy for the analysts to paint whatever picture they want with Apple and they are so far going by what has been officially announced. Sometimes Apple keeping things secretive can have a positive and negative impact on people's perception. But, i feel pretty good that Apple will have some interesting product announcements this year. Its just a matter of will they have a nice large screen iPhone or not. Will they have fingerprint ID technology this year or not. Will they get Apple TV upgraded to make a significant impact on their sales/profits. Will Apple actually release an actual smart TV or not. Will Apple release an iWatch and what will that do to impact revenues/profits. Obviously, Apple will release new MacBookPros, iMacs, Mac Minis and MacPros, so will see if the desktop/laptop sales gets back to increasing sales, etc. I just only have a certain degree of caution in them having production issues this year like they did last year when they announced a lot of products within a short period of time.
"Though Samsung Electronics reported a record operating profit for its June quarter, the number still came in below analysts' expectations, sending the company's stock tumbling on Friday."
Just like Apple. But will we start seeing tech blogs lamenting that Samsung has lost its mojo? Will we see articles instructing Samsung as to what it must do to survive? Will a chorus of wagging tongues start demanding that Samsung's CEO be replaced? Will the term"beleaguered" start to be used when referring to Samsung? Will there be cries of "no innovation" flying around?
I think we already know the answers to those questions don't we.
I think Samsung is kind of dumb to announce their biggest profit maker right before the summer months. People tend to not buy products during the summer since a lot of people are saving up for summer vacations and people are mentally in a different head space during the summer months. Technology stocks have always had their slow period during the summer months. That's been going on for many decades.
I think Samsung is kind of dumb to announce their biggest profit maker right before the summer months. People tend to not buy products during the summer since a lot of people are saving up for summer vacations and people are mentally in a different head space during the summer months. Technology stocks have always had their slow period during the summer months. That's been going on for many decades.
I think they try to release it when it won't have to compete with a new iPhone, toward the end of the cycle for the last one.
Comments
Without information or fact or evidence, the greedy bid up the stock prices, then they make up expectations to support their stock prices so they can sell them to even greedier people.
I agree.
Samsung seems to have shipped more phones this quarter but still saw their profits shrink. That probably means the phones they did ship were cheap android feature phones.
The same would happen to Apple if they release a $200 phone.
I'd rather Apple keep their margins high and release their cheaper phone for $300-400 as well.
Quote:
Originally Posted by matrix07
The big grow segment will be wearable computer and it seems the market placed the bet on Google 'cause they have the best services.
Too bad for "the market" that Google doesn't have a wearable product that people will want to wear.
Quote:
Originally Posted by RichL
1) Ship phones to warehouse to collect dust
2) Harvest dust
3) ???
4) Profit
Where is 'collecting underpants' in this plot?
You are correct -- If you consider a wearable device as an all-in-one replacement for an iPhone...
But all the wearable device [really] needs to do is conveniently provide voice/audible I/O and Control to a companion iOS device such as an iPad Mini, iPad or iPhone -- elsewhere on your person or in your kit.
When on the go, I currently take an iPhone 5 and an iPad 4.
I would prefer a wearable device and an iPad Mini.
I think, at most, the iPhone in your pocket counts as wearing -- if you can use it while "wearing it in your pocket"!
I agree. No cheap looking plastic.
Quote:
Originally Posted by zoffdino
The iPhone accounts for half of Apple sales, but likely more than half of Apple's profit as it's the product with highest margin. Whether it approaches 70% is a question that only Apple management knows.
The high end smart phone market is quickly reaching saturation. Those in the developed world who can afford it already had one. The growth will be in the low and mid-end tiers, which Apple is sorely lacking. I don't think Apple will ever chase the cheap crowd, it's not their DNA. But the mid-tier phones, those that cost $300 - $400, have a huge market that Apple so far is leaving to the Android vendors.
You misunderstanding the phone market, the iPhone is very far from being a very high margin product. Too much patent and licence fee are attached to any cell phone technology. Apple like everyone else has to pay big bucks for its 3G-LTE modem and other technologies integrated in phones these day, this is why carriers started to subsidize devices to their clients unwilling to pay the real price of it.
The real cash cow for Apple is not their products anymore but their services, the iTunes Stores and the whole iOS ecosystem is where Apple got their money from.
Agreed.
The should use candy colored
aluminum and maybe just put a small plastic panel on the bottom of the back like the iPhone 1 had.
I think they should maintain higher margins on the phone because if the cheaper iPhone cannibalizes the more expensive just a little bit than that would throw off Apple's quarterly margins completely.
I still believe the leaks are fake. We will not be seeing that plastic on the cheaper iPhone.
"Though Samsung Electronics reported a record operating profit for its June quarter, the number still came in below analysts' expectations, sending the company's stock tumbling on Friday."
Just like Apple. But will we start seeing tech blogs lamenting that Samsung has lost its mojo? Will we see articles instructing Samsung as to what it must do to survive? Will a chorus of wagging tongues start demanding that Samsung's CEO be replaced? Will the term"beleaguered" start to be used when referring to Samsung? Will there be cries of "no innovation" flying around?
I think we already know the answers to those questions don't we.
Investors are indeed a fickle lot. Two companies bashed for record profits. Par for the course I guess.
Quote:
Originally Posted by zoffdino
The iPhone accounts for half of Apple sales, but likely more than half of Apple's profit as it's the product with highest margin. Whether it approaches 70% is a question that only Apple management knows.
The high end smart phone market is quickly reaching saturation. Those in the developed world who can afford it already had one. The growth will be in the low and mid-end tiers, which Apple is sorely lacking. I don't think Apple will ever chase the cheap crowd, it's not their DNA. But the mid-tier phones, those that cost $300 - $400, have a huge market that Apple so far is leaving to the Android vendors.
Apple has several problems to deal with.
1. They don't have NTT and China Mobile signed up yet. Obviously, they are both holding out as they and Apple go through their respective negotiations. I'm sure Apple will sign both of them up at some point in time, which would definitely increase Apple's market share on a global level and Apple will see increased sales and revenues from the iPhone product line based on these two.
2. Apple has only announced basically one new model on a yearly basis, when they should be announcing more than that. I think Apple has room to replace their existing iPhone 4 and 4S with an updated model that is their "low end" model which maybe Apple is planning on doing. The other is getting a bigger screen phone, which is seriously hampering their growth. I personally think that the market is definitely split up into three definite screen sizes and Apple needs to constantly address this.
3. There is obviously a market for the low end smartphone market that Samsung seems to have capitalized on where the unlocked version is $150 retail, $99 on sale but there is no money in that, Apple most likely is not stupid enough to make a phone that sells tens of millions and basically makes hardly anything from them due to factoring the costs of warranty issues and support calls in supporting a super low end product. It's similar to the PC industry selling $400 laptops. THERE IS NO MONEY IN IT, SO WHY BOTHER. It's a cheap way of buying market share.
4. iOS obviously needs an fresh update, which it could have used last year, but obviously we have to wait until iOS 7 is finished, but so far, I personally like what I see and know that iOS 8 will just add even more features.
5. I don't know how much pent up demand Apple has for their fingerprint ID technology to get released. Individuals may not care as much as large customers, government, and military customers might be salivating for this technology in smartphones and tablets. So, this is something we have to wait to see how much impact that's happening.
On one hand, it's easy for the analysts to paint whatever picture they want with Apple and they are so far going by what has been officially announced. Sometimes Apple keeping things secretive can have a positive and negative impact on people's perception. But, i feel pretty good that Apple will have some interesting product announcements this year. Its just a matter of will they have a nice large screen iPhone or not. Will they have fingerprint ID technology this year or not. Will they get Apple TV upgraded to make a significant impact on their sales/profits. Will Apple actually release an actual smart TV or not. Will Apple release an iWatch and what will that do to impact revenues/profits. Obviously, Apple will release new MacBookPros, iMacs, Mac Minis and MacPros, so will see if the desktop/laptop sales gets back to increasing sales, etc. I just only have a certain degree of caution in them having production issues this year like they did last year when they announced a lot of products within a short period of time.
Quote:
Originally Posted by lkrupp
"Though Samsung Electronics reported a record operating profit for its June quarter, the number still came in below analysts' expectations, sending the company's stock tumbling on Friday."
Just like Apple. But will we start seeing tech blogs lamenting that Samsung has lost its mojo? Will we see articles instructing Samsung as to what it must do to survive? Will a chorus of wagging tongues start demanding that Samsung's CEO be replaced? Will the term"beleaguered" start to be used when referring to Samsung? Will there be cries of "no innovation" flying around?
I think we already know the answers to those questions don't we.
I think Samsung is kind of dumb to announce their biggest profit maker right before the summer months. People tend to not buy products during the summer since a lot of people are saving up for summer vacations and people are mentally in a different head space during the summer months. Technology stocks have always had their slow period during the summer months. That's been going on for many decades.
But I am drinking champaign.
"Interesting" is in the eye of the beholder. So you tell me: why did you find my posting interesting enough to reply?
Quote:
Originally Posted by drblank
I think Samsung is kind of dumb to announce their biggest profit maker right before the summer months. People tend to not buy products during the summer since a lot of people are saving up for summer vacations and people are mentally in a different head space during the summer months. Technology stocks have always had their slow period during the summer months. That's been going on for many decades.
I think they try to release it when it won't have to compete with a new iPhone, toward the end of the cycle for the last one.
Quote:
Originally Posted by Robin Huber
Wall Street cares about products the way bookies care about horses.
Good one. LOL.