UBS: Apple deserves benefit of doubt with iPhone 5c pricing

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Comments

  • Reply 21 of 96

    dont listen to these idiots they know just about as much as we know they are guessing.bank america puts a down grade on apple they should be down graded themselfs the stock is at 13 for a reason

  • Reply 22 of 96

    buy apple on dips scale in 10 shares at at time i started at 470.465.449.and dont listen to these idiots be a long time holder

  • Reply 23 of 96
    how can the analysis comment on Apple strategy which in fact Apple never says what their strategy actually is. Hell these analysis are still try to figure out what the who Itune strategy was form 10 yrs ago and how entire product ecosystem play outs in their favor.
  • Reply 24 of 96

    i think they are getting themselfs sold out and they will come around and start buying apple pe of 11

  • Reply 25 of 96
    Quote:
    Originally Posted by AppleInsider View Post



    Assorted investment analysts who downgraded Apple stock in the wake of last week's new iPhone 5c reveal may have been a bit hasty, according to a new report out from UBS that says Cupertino may have earned the benefit of the doubt.

     

    Um, ya' think?

  • Reply 26 of 96

    Come on, sheep, let's leave out the fanboism for second and be realistic adults!!

     

    If the iPhone 5C would be (pre-) selling well -- Apple would brag about it!

     

    iPhone 5C = Cheap (for Apple, that is), Child labor

    iPhone 5S = Same

     

    --- 666 Hereticz 666 ---

  • Reply 27 of 96

    Pricing (supply/demand) and production capacity are tightly linked...

     

    Remember the original iPhone, way back in 2007, was priced at $599 with 8GB and a contract (AT&T only)?

     

    Today, the 16GB 5c is $99 with a contract, take your pick...  The horror...the horror!

     

    Apple priced the original that high, in part, because they didn't have the production capacity and they wanted to capture the premium buyer first...  They've done this, oh, about fifty times over the years with their various products...  iPhones, iPads, iPods, Macs, etc.

     

    Apple, of course, could have priced the 5C as 'free' with contract, and/or, let's say, $399 off-contract, but there would be massive global buying, short supply, long deliveries and unhappy customers...  Better for Apple to get the premium buyers first, keep their customers happy, continue to ramp their production capacity and capture the discount buyers down the road...

  • Reply 28 of 96
    Quote:
    Originally Posted by Rogifan View Post





    The issue isn't about on contract. The issue is a lot of people are trying to get out of contracts and outside of the US the subsidy model isn't as prevalent. $550 is expensive. Especially if this "colorful little thingie" didn't cost Apple that much to design.

     

    There are people getting rich everyday in China and a lot of people new to a middle-class lifestyle. Apple products are for those people, not the Android masses.

  • Reply 29 of 96

    "UBS attributes its own downgrade to three factors. First, the firm was "concerned that Apple might be disrupted." It was also "worried that investors are worried Apple might be disrupted." Finally, there were concerns that, even if correct, Apple's strategy may not play out for some time."

     

    What kind of stupid logic is that?!!!

     

    These idiots are same idiots who brought down the economy worldwide not too long ago!

  • Reply 30 of 96
    Quote:
    Originally Posted by jungmark View Post





    They did downgrade AAPL.

     

    Yeah, but they were right to do so, especially since they were apparently among the first to do so. They aren't trying to predict the company's inherent worth (for lack of a better term), they are trying to predict what the stock will do, which may or may not be closely tied to the company's inherent worth. If you look at their stated reasons, they make sense, too. 

     


    Yes, Apple deserves the benefit of the doubt on this, given the fact that people always complain about Apple products being too expensive, then the company typically goes on to sell as many as they can make. And yes, Apple stock went down more than 10% since the new phone announcements and their downgrade, so they were right about that too. It doesn't mean that the company's valuation is reasonable when compared to its so-called peer group.
  • Reply 31 of 96
    Pricing (supply/demand) and production capacity are tightly linked...

    Remember the original iPhone, way back in 2007, was priced at $599 with 8GB and a contract (AT&T only)?

    Today, the 16GB 5c is $99 with a contract, take your pick...  The horror...the horror!

    Apple priced the original that high, in part, because they didn't have the production capacity and they wanted to capture the premium buyer first...  They've done this, oh, about fifty times over the years with their various products...  iPhones, iPads, iPods, Macs, etc.

    Apple, of course, could have priced the 5C as 'free' with contract, and/or, let's say, $399 off-contract, but there would be massive global buying, short supply, long deliveries and unhappy customers...  Better for Apple to get the premium buyers first, keep their customers happy, continue to ramp their production capacity and capture the discount buyers down the road...

    Indeed, before the launch of the 5c, I was thinking that Apple could have hard time to meet the demand for a brand new 450$ iPhone... : )
  • Reply 32 of 96
    Quote:
    Originally Posted by MJ Web View Post



    AAPL doesn't deserve the benefit of any doubt. If they were trying to match the bodily functions of death the company couldn't have picked 4 fuglier colors! Any magic this company had is gone and as a Apple early adopter and investor I couldn't be more disgusted with management. We have the worst of Jerry Yang and Steve Balmer in Tim Cook, a guy who couldn't get it right if his life depended on it. Based on its new products I can confidently say APPLE SUCKS!

     

    My daughter loves the blue and yellow iphone 5c and the green one too.  Ugly is in the eye of the beholder.  I think the GS4 is one of the ugliest mobile phones built today but hey that is just me.

  • Reply 33 of 96
    rogifanrogifan Posts: 10,669member
    There are people getting rich everyday in China and a lot of people new to a middle-class lifestyle. Apple products are for those people, not the Android masses.
    So $550 isn't expensive for the middle class? I'm not saying Apple needs to get into a race to the bottom but there is something in between the high end and the low end, no?
  • Reply 34 of 96
    rogifanrogifan Posts: 10,669member
    Pricing (supply/demand) and production capacity are tightly linked...

    Remember the original iPhone, way back in 2007, was priced at $599 with 8GB and a contract (AT&T only)?

    Today, the 16GB 5c is $99 with a contract, take your pick...  The horror...the horror!

    Apple priced the original that high, in part, because they didn't have the production capacity and they wanted to capture the premium buyer first...  They've done this, oh, about fifty times over the years with their various products...  iPhones, iPads, iPods, Macs, etc.

    Apple, of course, could have priced the 5C as 'free' with contract, and/or, let's say, $399 off-contract, but there would be massive global buying, short supply, long deliveries and unhappy customers...  Better for Apple to get the premium buyers first, keep their customers happy, continue to ramp their production capacity and capture the discount buyers down the road...
    So we're supposed to believe Apple priced the 5C at $550 because if they priced it any lower they wouldn't have been able to make them fast enough? I guess then I'd tell people who aren't desperate to wait a few months when it comes down in price.
  • Reply 35 of 96
    Quote:

    Originally Posted by Enigmamatic View Post



    Right now China is the REAL target. Right now it's 1984 in China. Not in the Orwellian sense. China is obsessed with status, style, and impressions. The flashier and more costly something is the more desirable it is. America was this way in the 80s (and still is to a certain extent). The Chinese are obsessed with showing off what they got. Trust me. The colorful iPhones (in a palette, by the way, very appealing to the fashion conscious Chinese) with a still premium price will sell very well where it counts. Anyone discounting Apple for this strategy needs to open their eyes to the new world around them and realize that life isn't lived in one's own backyard.



    Tim Cook is brilliant.

    The new iPhones are spot on for what the market needs.

    I think this will all work and work very well.

     

    In order to break through in China Apple would have had to priced this mid tier. Remember that in China the product is going to cost more and that there is no option to put the cost of the device into the contract. They have to pay for it up front. And, people tend to have less money in China than the US.

     


    Will it sell in China? Yes. Will it sell well? Yes. Will it have a breakthrough? No. It will be a niche product.
  • Reply 36 of 96
    Quote:

    Originally Posted by Hereticz View Post

     

    Come on, sheep, let's leave out the fanboism for second and be realistic adults!!

     

    If the iPhone 5C would be (pre-) selling well -- Apple would brag about it!

     

    iPhone 5C = Cheap (for Apple, that is), Child labor

    iPhone 5S = Same

     

    --- 666 Hereticz 666 ---


     

    Go away mr. 2 post troll

  • Reply 37 of 96
    Quote:

    Originally Posted by MJ Web View Post

     

    Right, China is the real target because the rest of the world is already fed up with AAPL! Asia is Apple's last gasp and only hope to not entirely go down the crapper. Samsung and Google have eaten AAPl's lunch -- past tense, game over! With Steve gone Apple has become a pathetic joke unable to protect its core IP and brand. 

     

    AAPL > $447 and free falling............................


    Hey, dump truck, why don't you take your short-sighted, ignorant, trolling crap back to the dumpster where it belongs? If you REALLY believe the statement you just wrote, you should go share a bed with Peter Misek, as you both seem to be a match made in stupidity heaven!

  • Reply 38 of 96

    The initial 5C pricing is about getting the premium pricing first from people who are willing to pay it, and balancing supply and demand...  Again, this is not a new strategy, this is something Apple has done for years, starting with the original iPhone in 2007...

     

    Now, one might make the argument that the strategy doesn't work anymore, in a world flooded with cheap Android knock-offs, but I actually think Apple is smart to preserve their premium brand and unparalled customer loyalty...  Their US market share is now rising, compared to Android - once in the Apple ecosystem, people tend to stick around - and the 5C, while not satisfying the price point expectations of everyone, should help Apple grow more share overseas as well...

     

    It's interesting - there are quite a few Android phones out there, including from Samsung,  priced at $249 or higher under contract, with some bigger screens for sure, but I don't hear people screaming about the doomed strategy of those products or vendors...  (Apple bashing is just more fun, apparently...)  Every vendor targets a market that is important to them...  Apple continues to target the middle-to-high-end: the premium buyer...  Given the app and media revenue they get off of each phone purchase - compared to Android, they continue to get the absolute lion's share of $$ in that regard, despite their smaller volume - that strategy seems to make sense...  The initial phone purchase is just one piece of the revenue stream...

     

    Android is certainly dominating in unit volume, but it is clearly suffering in terms of profits for its OEMs (other than Samsung), which challenges the sustainability of its licensing model...  Windows never had that problem, until recently...  Android also continues to suffer from serious fragmentation - by the end of the year, more people will be running iOS 7 by about a factor of 100 than will be running KitKat, or even Jelly Bean...  Developers must write for different versions of Android, different screen resolutions, different graphics APIs, etc., etc....  Total pain in the neck...  Again, the free-licensing and do-your-own-thing approach was great for firing up low-cost volume overseas, but is not sustainable in the long-term...

     

    With their Motorola acquisition, Google started to bend toward Apple's integrated model, and they will continue to do so, but they are a couple of years behind (not to mention their confusing Chrome OS/Android schizophrenia - at least iOS and MacOS are built on the same core)...  And Google has unintentionally helped midwife dozens of competitors who will continue to beat them up on the low-end: as a condition of their Motorola acquisition, they are required by the Feds to continue to give away Android for free for another three years...  Apple is happy to let them do that while continuing to dominate the high-end...

  • Reply 39 of 96
    Apple has more to gain from a more expensive phone than it does on a cheaper one. It makes hardware that gets people to pay for software. How much do the people who can barely afford a computer spend on software for it? Apple would just have a low end of jailbreak using customers. Hardly worth it. How many low end users would have an active credit card attached to their account? As usual Apple will make more money than everyone else because it knows how to make money. By saying no to everyone who wants an iPhone and yes to only those who can afford an iPhone and would buy software and official peripherals for it. The analysts are in the same camp as those who can't buy a new device every two years and want the device they can get to do everything possible so they can get themostbang for the buck. The analysts are not interested in building solid foundations for business only building hollow empires they can puff up, squeeze dry, and destroy. Apple isn't playing their game.
  • Reply 40 of 96
    Or...you can wait until Apple does announce numbers. You know: real data? Something investors in financial markets used to make buy/sell decisions on? Before hysteria and hearsay took over? Sheesh.
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