Wall Street's 'love affair' with iPhone unit sales, and not Apple's ecosystem, seen as misguided

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Comments

  • Reply 21 of 35
    dasanman69dasanman69 Posts: 13,002member
    Don't make Crowley mad, dasan. He's a smart guy, although a bit "wordy!" :)

    Best.

    Apple's ecosystem and the hardware go hand in hand. The more people buy into the ecosystem the more they'll continue to buy iPhones. Though the analyst didn’t come right out and say that it is the message conveyed. I'm not doubting his intelligence but sometimes reading between the lines is more important than what's actually being said.
  • Reply 22 of 35
    Quote:

    Originally Posted by dasanman69 View Post





    Apple's ecosystem and the hardware go hand in hand. The more people buy into the ecosystem the more they'll continue to buy iPhones. Though the analyst didn’t come right out and say that it is the message conveyed. I'm not doubting his intelligence but sometimes reading between the lines is more important than what's actually being said.

    Agreed, I was trying to be funny! :)

  • Reply 23 of 35
    crowleycrowley Posts: 10,453member
    dasanman69 wrote: »
    Apple's ecosystem and the hardware go hand in hand. The more people buy into the ecosystem the more they'll continue to buy iPhones. Though the analyst didn’t come right out and say that it is the message conveyed. I'm not doubting his intelligence but sometimes reading between the lines is more important than what's actually being said.
    Oh I agree, and think what you're saying is basic common sense, but I'm not clear on why this analyst thinks Wall Street should care. Wall Street follows the money, and the money is (mostly) in the hardware sales. Is he just saying that Wall Street should bear in mind the stickiness of the iOS ecosystem? I think that's already priced into sales forecasts and expectations. It doesn't need any separate consideration.

    Genuinely not sure what the analyst's point could be beyond that.
  • Reply 24 of 35
    crowleycrowley Posts: 10,453member
    EDIT: Mobile site is driving me nuts
  • Reply 25 of 35
    crowleycrowley Posts: 10,453member
    Don't make Crowley mad, dasan. He's a smart guy, although a bit "wordy!" :)

    Best.
    Thanks... I think.

    I don't get mad often, just a little irritated with some people.
  • Reply 26 of 35
    Quote:
    Originally Posted by Crowley View Post





    Thanks... I think.



    I don't get mad often, just a little irritated with some people.

    Yeah, the "wordy" comment was me trying to be funny.  I was just trying to lighten it up a bit. If I want "squabbling," I can just talk to my GF! :)

     

    I enjoy both your's and Dasan's posts! :)

     

    Best.

  • Reply 27 of 35
    crowleycrowley Posts: 10,453member
    It's all cool bro, I take wordy as a compliment :)

    I'd much rather be wordy than... whatever the opposite is.
  • Reply 28 of 35
    dasanman69dasanman69 Posts: 13,002member
    crowley wrote: »
    Oh I agree, and think what you're saying is basic common sense, but I'm not clear on why this analyst thinks Wall Street should care. Wall Street follows the money, and the money is (mostly) in the hardware sales. Is he just saying that Wall Street should bear in mind the stickiness of the iOS ecosystem? I think that's already priced into sales forecasts and expectations. It doesn't need any separate consideration.

    Genuinely not sure what the analyst's point could be beyond that.

    I don't think Wall Street takes into consideration the stickiness of the ecosystem. They view the iPhone like many products that are once popular and can go bust at a moments notice. iPhone sales have been so high that many believe it can only come down. IMO sales will at worst level off but I don't ever see them going down.
  • Reply 29 of 35
    radarthekatradarthekat Posts: 3,823moderator
    Microsoft, once they had a huge installed base of the Windows OS, was able to monetize that for many years. And that was by selling just the software and no hardware. Apple earns high margins on hardware, gives away the OS, and then takes 30% of 3rd party software sales. Apple in the mobile space is becoming the modern-day version of Microsoft in its ascendency with all the PC hardware makers added on top. Apple is a colossus and will become even bigger. The market may not see it correctly, but the money keeps piling up; that is what businesses are in business to do; pile up the money.
  • Reply 30 of 35
    dasanman69dasanman69 Posts: 13,002member
    Microsoft, once they had a huge installed base of the Windows OS, was able to monetize that for many years. And that was by selling just the software and no hardware. Apple earns high margins on hardware, gives away the OS, and then takes 30% of 3rd party software sales. Apple in the mobile space is becoming the modern-day version of Microsoft in its ascendency with all the PC hardware makers added on top. Apple is a colossus and will become even bigger. The market may not see it correctly, but the money keeps piling up; that is what businesses are in business to do; pile up the money.

    Except Apple isn't afraid to change. Microsoft had such a head start with a mobile OS and they let it languish with no updates for years. Never once did they imagine what the smartphone could and would evolve into until Apple showed them.
  • Reply 31 of 35
    noelosnoelos Posts: 125member
    crowley wrote: »
    I'd much rather be wordy than... whatever the opposite is.

    Succinct? Lapidary? Terse? Brief?
  • Reply 32 of 35

    Lapidary?  You mean laconic?  

     

    Apple's 30% split of the app store revenue will become very profitable as the scale increases.  They used to say that the 30% from iTunes sales was not that profitable and just went to cover the expenses of running and curating the site.  But as the installed base grows from 1/2 billion users to 1 billion users, their incremental expense to run the app store and iTunes store will not increase proportionally.  So growing SCALE in Apple's future will help insure its relevancy among the developer and music artist's community for years to come and keep it from getting swamped by the growth of Android through ultra-cheap device proliferation.   

     

    And I too am surprised the analyst only sees a future share price of $590.

  • Reply 33 of 35
    lkrupplkrupp Posts: 10,557member
    Quote:

    Originally Posted by dysamoria View Post





    Just Wall Street in general. They're largely a bunch of near-sighted greedy opportunists who have destroyed the economy... and taken advantage of even that.

     

    PBS had a Frontline edition last night examining insider trading, basically hedge funds with inside connections from employees, totally illegal. Scum bags are apparently the norm on Wall Street. Lots of ‘em sent to jail and fined and the investigations continue.

  • Reply 34 of 35
    newbeenewbee Posts: 2,055member
    Quote:

    Originally Posted by wakefinance View Post





    Just FYI those aren't services.

    While technically correct, for the purposes of this discussion, anything that is not hardware can  be called services. When Apple first suggested building their own retail chain of stores, the industry thought they were nuts ... a store to sell 6 or 7 different products ???.. Really ?? ... but the art of selling is, in itself, like performing a service. Some companies are lousy at it, Apple is excellent at it ... that's my point.

  • Reply 35 of 35
    newbeenewbee Posts: 2,055member
    Quote:

    Originally Posted by dasanman69 View Post





     ........ sometimes reading between the lines is more important than what's actually being said.

    I could not agree more ... in fact, I would say, that is usually the case.

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