I have no problem with the hardware cost at all. But I still don't have an iPhone. The reason is because of the service plan costs. I don't use a cell phone enough to justify forking out $70+/mo. to Rogers.
There's a massive market of young people who can't afford the cost of an iPhone, and more importantly it's contract. These are traditionally a big market for the iPod, so it'd make sense to try to get a phone that could be approaching the iPod Touch's price - hard, but not impossible.
Huh? An iPhone (with a contact) is cheaper than in iPod. The problem is the monthly fees.
I know we probably don't have any real investment types visiting this forum but I would like to know if analysts like this Huberty suffer any consequences when their predictions and models prove to be wrong. It would seem that investors who make their buy/sell decisions based on analyst's reports would be impacted negatively by bad information. For example, Huberty has turned a 180 on Apple. Now she thinks it's the cat's meow. So what about those Morgan Stanley customers who lost out on Apple's big run up? Do they complain to Huberty's boss or file lawsuits for incompetence?
So the 3Gs is the more popular of the two models despite the higher price; therefore Apple should release a cheaper phone. The logic simply doesn't match the data.
I agree it's more about the data plan pricing than anything else, however I thought contracts in countries other than the US were generally allot less expensive comparatively. So obviously she's only talking about the US or is she somehow using US data to extrapolate international pricing?
I agree, this analyst is way off base. A sub $99 phone doesn't seem like a good fit for a premium brand like Apple.
You'd probably sell allot of Mercedes sub $20k too, but you don't see it happening.
Also, I'm tired of people who say flash is a must. I don't even use flash on my desktop or laptop anymore. Why would anyone want it on their mobil? All I can gather is that anyone who cries about flash watches way too much porn. As far as games go; flash games are horrendous, not designed for touch UI's and there are far better games (even at .99) Apple would rather you buy from their store and support their developers.
I suppose lack of flash killed the Nintendo DS and the PSP as well? Please explain to me what flash games and video content are so important, because I can't find anything that I'd want to use that's flash based, let alone a flash based something or other that is a "must". I truly want to know what you guys are talking about because it's beyond me. Perhaps the naysayers would understand your perspective if you told us what you "must have" that you cannot without flash.
I know we probably don't have any real investment types visiting this forum but I would like to know if analysts like this Huberty suffer any consequences when their predictions and models prove to be wrong. It would seem that investors who make their buy/sell decisions based on analyst's reports would be impacted negatively by bad information. For example, Huberty has turned a 180 on Apple. Now she thinks it's the cat's meow. So what about those Morgan Stanley customers who lost out on Apple's big run up? Do they complain to Huberty's boss or file lawsuits for incompetence?
Concerning AAPL, the stock is mostly (over 72%) owned by institutional investors and mutual funds, so the retailer investor's (your Aunt Millie) opinion does not carry much weight.
The market has been very positive about AAPL over the past several years (the short percentage is extremely low, like around a half a point), so clearly most investors are not listening to Huberty.
Hopefully she's good at analyzing other companies, however she has zero credibility about Apple Inc.
you are correct. But you have to keep in mind, this is an analyst who is reporting on conditions/opinions related to the iphone, Apple, and stock in the US. She is a market analyst (and a lousy one at that). Her comments were not aimed at the pricing of the iphone in a global market. That would be a different type of report from a more qualified individual.
Really? She's surely quoting on Apple as a global company that affects their stock price (listed in the US).
I think you're taking an overly US-centric view on things.
Not that I particularly agree with her analysis...
Please explain to me what flash games and video content are so important, because I can't find anything that I'd want to use that's flash based, let alone a flash based something or other that is a "must". I truly want to know what you guys are talking about because it's beyond me. Perhaps the naysayers would understand your perspective if you told us what you "must have" that you cannot without flash.
I'm disappointed that you are unable to see this yourself, but there are two sites on the Internet that drive the use of Flash: YouTube and FaceBook.
It will be years before HTML5 can pry the cold claws of Flash off the face of the Internet (especially on the desktop), but hopefully the lack of Flash on mobile devices will accelerate this transition.
Unless they do something about the $1000 a year ownership costs of the iPhone, then making it cheaper or even free makes not a damn difference in the world.
I'm disappointed that you are unable to see this yourself, but there are two sites on the Internet that drive the use of Flash: YouTube and FaceBook.
It will be years before HTML5 can pry the cold claws of Flash off the face of the Internet (especially on the desktop), but hopefully the lack of Flash on mobile devices will accelerate this transition.
Ok don't use facebook and youtube is already available in h264. So what on facebook requires flash. facebook games?
I'm disappointed that you are unable to see this yourself, but there are two sites on the Internet that drive the use of Flash: YouTube and FaceBook.
.
If this is what you're going to offer then stop commenting. Do you really need an explanation as to why these sites are non-factor, non-issue, on the iPhone/iPad?
Everyone here is focussing on post pay too much. In much of the world, pre pay (PAYG) is the real driver behind customer numbers. To get an iPhone on PAYG, the price is subsidised very very little, if at all (an 8GB 3G costs £350 on O2 in the UK). Now that the exclusive deals are coming to an end, Apple will probably not be getting a cut of the post pay revenue. So, in order to sell more devices, your need to widen the market.
If Apple can some how repackage much of the 3G (or 3GS) technology (that's pretty much had its R&D paid for) into something new (so that customers don't feel that they're buying last years' model); then they may be onto a winner.
So, pre pay. That's the next area of growth for the iPhone.
How can an analyst be so dumb? She quotes a 2008 survey in the US to say that iPhone hardware is expensive??? That would only be the case where the iPhone is sold prepaid at US$499... not in the US, where obviously either its unavailability on different carriers, unavailability as a prepaid option, or the service plan itself are the factors limiting wider adoption.
Ok don't use facebook and youtube is already available in h264. So what on facebook requires flash. facebook games?
Yes, FaceBook games are enormously popular and some of them are highly profitable. That's why Flash is so important on that site.
For YouTube, yes, I realize that there is h.264 support and the content is accessible in a variety of ways from a variety of hardware and browser platforms, but most desktop computer users are still visiting the site with Internet Explorer on a Windows machine. They will need Flash for a considerable amount of time.
If this is what you're going to offer then stop commenting. Do you really need an explanation as to why these sites are non-factor, non-issue, on the iPhone/iPad?
First of all, no one is accessing these sites on an iPad. It hasn't shipped yet.
While you can access Facebook on an iPhone via a dedicated app, there is still a large number of users accessing the site from Internet Explorer on a Windows box.
My comments are about Flash technology in general, not about Flash on a specific platform or device.
Yet another analyst who doesn't follow Apple's core strategies. Sure, dropping price on anything will increase sales, but that is not Apple's strategy and they've said it over and again. They have a strong ethos for pricing discipline and grow features at the same price point rather than aim for the lowest price. Same with desktops and laptops. They have the largest margins of anyone and are selling everything they can make. Wake up, analyst!
What will probably happen is that they will lower their costs through custom silicon (A4 or an iPhone scaled version) while introducing new features which will continue to validate the price point. And they will make a major push in China now they have satisfied initial demand in the US and EU markets.
Oh, and don't go expecting some sort of deal with another US carrier. Apple is a standards-driven company and has zero incentive given worldwide demand for GSM handsets to toy with CDMA or non-standard GSM bands. We are a minority market. They'll wait for LTE.
Comments
There's a massive market of young people who can't afford the cost of an iPhone, and more importantly it's contract. These are traditionally a big market for the iPod, so it'd make sense to try to get a phone that could be approaching the iPod Touch's price - hard, but not impossible.
Huh? An iPhone (with a contact) is cheaper than in iPod. The problem is the monthly fees.
I agree it's more about the data plan pricing than anything else, however I thought contracts in countries other than the US were generally allot less expensive comparatively. So obviously she's only talking about the US or is she somehow using US data to extrapolate international pricing?
I agree, this analyst is way off base. A sub $99 phone doesn't seem like a good fit for a premium brand like Apple.
You'd probably sell allot of Mercedes sub $20k too, but you don't see it happening.
Also, I'm tired of people who say flash is a must. I don't even use flash on my desktop or laptop anymore. Why would anyone want it on their mobil? All I can gather is that anyone who cries about flash watches way too much porn. As far as games go; flash games are horrendous, not designed for touch UI's and there are far better games (even at .99) Apple would rather you buy from their store and support their developers.
I suppose lack of flash killed the Nintendo DS and the PSP as well? Please explain to me what flash games and video content are so important, because I can't find anything that I'd want to use that's flash based, let alone a flash based something or other that is a "must". I truly want to know what you guys are talking about because it's beyond me. Perhaps the naysayers would understand your perspective if you told us what you "must have" that you cannot without flash.
I know we probably don't have any real investment types visiting this forum but I would like to know if analysts like this Huberty suffer any consequences when their predictions and models prove to be wrong. It would seem that investors who make their buy/sell decisions based on analyst's reports would be impacted negatively by bad information. For example, Huberty has turned a 180 on Apple. Now she thinks it's the cat's meow. So what about those Morgan Stanley customers who lost out on Apple's big run up? Do they complain to Huberty's boss or file lawsuits for incompetence?
Concerning AAPL, the stock is mostly (over 72%) owned by institutional investors and mutual funds, so the retailer investor's (your Aunt Millie) opinion does not carry much weight.
The market has been very positive about AAPL over the past several years (the short percentage is extremely low, like around a half a point), so clearly most investors are not listening to Huberty.
Hopefully she's good at analyzing other companies, however she has zero credibility about Apple Inc.
you are correct. But you have to keep in mind, this is an analyst who is reporting on conditions/opinions related to the iphone, Apple, and stock in the US. She is a market analyst (and a lousy one at that). Her comments were not aimed at the pricing of the iphone in a global market. That would be a different type of report from a more qualified individual.
Really? She's surely quoting on Apple as a global company that affects their stock price (listed in the US).
I think you're taking an overly US-centric view on things.
Not that I particularly agree with her analysis...
Please explain to me what flash games and video content are so important, because I can't find anything that I'd want to use that's flash based, let alone a flash based something or other that is a "must". I truly want to know what you guys are talking about because it's beyond me. Perhaps the naysayers would understand your perspective if you told us what you "must have" that you cannot without flash.
I'm disappointed that you are unable to see this yourself, but there are two sites on the Internet that drive the use of Flash: YouTube and FaceBook.
It will be years before HTML5 can pry the cold claws of Flash off the face of the Internet (especially on the desktop), but hopefully the lack of Flash on mobile devices will accelerate this transition.
I'm disappointed that you are unable to see this yourself, but there are two sites on the Internet that drive the use of Flash: YouTube and FaceBook.
It will be years before HTML5 can pry the cold claws of Flash off the face of the Internet (especially on the desktop), but hopefully the lack of Flash on mobile devices will accelerate this transition.
Ok don't use facebook and youtube is already available in h264. So what on facebook requires flash. facebook games?
I'm disappointed that you are unable to see this yourself, but there are two sites on the Internet that drive the use of Flash: YouTube and FaceBook.
.
If this is what you're going to offer then stop commenting. Do you really need an explanation as to why these sites are non-factor, non-issue, on the iPhone/iPad?
If Apple can some how repackage much of the 3G (or 3GS) technology (that's pretty much had its R&D paid for) into something new (so that customers don't feel that they're buying last years' model); then they may be onto a winner.
So, pre pay. That's the next area of growth for the iPhone.
Ok don't use facebook and youtube is already available in h264. So what on facebook requires flash. facebook games?
Yes, FaceBook games are enormously popular and some of them are highly profitable. That's why Flash is so important on that site.
For YouTube, yes, I realize that there is h.264 support and the content is accessible in a variety of ways from a variety of hardware and browser platforms, but most desktop computer users are still visiting the site with Internet Explorer on a Windows machine. They will need Flash for a considerable amount of time.
If this is what you're going to offer then stop commenting. Do you really need an explanation as to why these sites are non-factor, non-issue, on the iPhone/iPad?
First of all, no one is accessing these sites on an iPad. It hasn't shipped yet.
While you can access Facebook on an iPhone via a dedicated app, there is still a large number of users accessing the site from Internet Explorer on a Windows box.
My comments are about Flash technology in general, not about Flash on a specific platform or device.
What will probably happen is that they will lower their costs through custom silicon (A4 or an iPhone scaled version) while introducing new features which will continue to validate the price point. And they will make a major push in China now they have satisfied initial demand in the US and EU markets.
Oh, and don't go expecting some sort of deal with another US carrier. Apple is a standards-driven company and has zero incentive given worldwide demand for GSM handsets to toy with CDMA or non-standard GSM bands. We are a minority market. They'll wait for LTE.
That's what I want to know.
With the ipad meeting this criteria, I might even switch back to a dumb phone as my main cell, if the update doesn't offer a sub-$500 unlocked price.
Do analysts really get paid for saying that products sell better when they are cheaper?
I guess more people listen to cheap analysts too?
Yeah, I guess it's time for a career change!