So it turns out that Apple is more cautious about preserving their capital then, say, CitiBank. Why am I not comforted?
Well, banks haven't proven to be cautious at all, have they? How much did Citigroup lose on those mortgage derivatives? I assume that Apple isn't buying other companies debts either, as banks were doing. I'm not concerned. If you were right about your concerns, the cash and investments would have seen a big drop during 2009. It didn't.
I'm not so good at media multitasking. My hands were full just listening to the audio.
Good to know that it wasn't just me. Maybe the analysts were still trying to digest the incredible numbers and processing where and how their projection models need adjustments.
With respect to the US market, I'd also wish they discussed the potential impact of US mobile carriers' data-cap and paid packet content prioritization. How will it change consumer behaviour? Does Apple need to enter into agreements with each carrier? What does the change between Google and Akamai mean for Apple streaming?
Those are interesting questions, but likely too specialized for that call. Apple is still mostly an electronics consumer company. You'll see questions like that on calls for other companies.
They need the right content deals before this thing is going to take off. If they sold a million of them this past quarter, that's really $100M in revenue, which works out to 0.37% of total revenue, an insignificant amount.
By contrast, they sold 7.3 million iPads at an ASP of $630, giving $4.6B in revenue. That's significant.
They really need to sell ten times as many Apple TVs before the device has any relevance to the bottom line.
I agree, the impact can almost get lost when contracting the significant digits, however, it's still a distinct platform and a distribution gateway into the home. I know there's a 'go to market strategy challenge' (in SJ words) but it'd be useful to know where things stand.
iPad cannibalization of the Mac: "Yes, I think there is some cannibalization," Cook said. "But I also think there is a halo effect."
"We have introduced millions of people in Asia to Apple through the iPhone. And we're now introducing many more through the iPad, and I think some of those decide to buy a Mac."
"If this is cannibalization, it feels pretty good."
Apple still has a low share of the PC market, so cannibalization isn't a concern to them. "The other guys lose a lot more. And we have a lot more to win because of that."
If Apple is not worried about "cannibalization" then they should have no problem selling that midrange Mac tower that people have been asking for.
Mad Magazine, circa 1965. Got a mind like a rusty trap.
Quote:
Well, banks haven't proven to be cautious at all, have they? How much did Citigroup lose on those mortgage derivatives? I assume that Apple isn't buying other companies debts either, as banks were doing. I'm not concerned. If you were right about your concerns, the cash and investments would have seen a big drop during 2009. It didn't.
Right, that's what I was driving at. The banks treat their capital like... capital. Apple treats their capital like... Fort Knox.
Apple Death Knell #54: Apple: Short Term Winner, Long Term Loser
By Fabrice Grinda, Published in BusinessInsider
Relevant Quote:
Android, with its relative openness, seems to be playing the role Windows played for the Mac. [?] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Mac?s best features but extended them.[?] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.
Steve Jobs seems to be repeating the same mistake all over again. The elegant integration between the iPhone, iTunes and the App Store is definitely a current source of comparative advantage. It is easier to offer a better user experience at the beginning when you limit the form factor and completely control the hardware and software. The iPhone 4 is clearly the best smartphone on the market. The apps in the Apple App Store are clearly the best apps on the market.
However, Apple?s insistence on having a single form factor, on being a premium player at a premium price point (to carriers at least), and its arbitrary decisions with regards to what apps make it in the App Store will eventually make Apple a niche player. Even if Apple keeps innovating and has the best phone on the market, it won?t matter.
I think this statement and analysis has to be taken as a very long term view. Say 5 or 10 years down the road. The big problem this analysis has is, its not exactly the same as the PC wars of the 90's. That, and the fact that the consumer electronics landscape is far different. Apple has never been this big ever. Sure Apple will have to deal with the coming of a $50 android phone, but the big difference is Apple has seperated themsleves more then ever in their history as the in style, easy to use, high quality, cool product.
I posted this in the previous article as well, but it is worth repeating:
Here's an interesting group of numbers I haven't seen reported yet:
iPhone: 16,240,000
iPad: 7,330,000
iPod Touch: 10,000,000 (19.45 million units, over half of which were iPod touch)
Apple TV: 1,000,000 (we know they sold at least this many)
Total IOS devices sold this quarter: 34,570,000
Average IOS sales per day over the last quarter: 384,000.
Looks to me like IOS is outselling Android by a huge margin, since they have only recently started claiming over 300,000 per day
To be fair, Android is still almost all phones. If we're comparing phone sales to phone sales, they are ahead now. Will it remain that way? Probably, but who can say for sure?
To be fair, Android is still almost all phones. If we're comparing phone sales to phone sales, they are ahead now. Will it remain that way? Probably, but who can say for sure?
True, Android is mostly phones, but you can bet they're counting the tablets and PMPs too.
google does not care if you want the latest OS you need to upgrade you phone.
I understand you of course, I know its an ad/search based strategy and in some ways it even worse than the Wintel situation of the 90's where in order to get the latest release one had to buy a new computer.
What is going to be interesting though this time around is that given the 2 year re-buy on phones, most folks (Mom and Pop) won't be upgrading their phones to the lastest version of Android until their contract us up and they buy a new phone/contract.
So they will miss out on the latest and greatest features as compared with iPhone users who for the most part can rely on their iPhone being easily upgradable for at least 2 years in the iTunes/Apps ecosystem.
In the end I suppose it won't make much difrerence really except possibly many of the newer apps won't be really executable on anything but the lastest phones. Time will tell how much of an impact this fragmentation will affect peoples perception of Android and how much of an annoyance it becomes and thus play into Apples hands?
Those are interesting questions, but likely too specialized for that call. Apple is still mostly an electronics consumer company. You'll see questions like that on calls for other companies.
No doubt mine are but a twig in a forest of countless questions that could be asked -- the detailed answers and strategies to which Apple has no doubt discusses internally but need and want to keep bland in public discourse -- it's just inquiring minds are, well, you know, curious.
Mad Magazine, circa 1965. Got a mind like a rusty trap.
At least you've still got it.
Quote:
Right, that's what I was driving at. The banks treat their capital like... capital. Apple treats their capital like... Fort Knox.
I'd rather be safe than sorry. You know how our conversation over this has gone throughout the years. Neither of us would like to see a really big purchase, though they could always make one that "surprises and delights". But they could make a number of smaller, but still large ones that do make sense. And no, I have no idea as to what they're thinking.
It now looks that if they make no large purchase this year, they could have, not $70 billion, but $80 billion; maybe even more. I can't see it getting to that point. But it's much more difficult for stockholders to force the issue than it was with Microsoft. There, the stock had not only stagnated, but was down in actual dollars, and much further down when inflation was taken into account. And I'm not talking about the absurd valuation they had before The Fall.
But, they will likely do something. I don't know if it was true about the CFO story, but it makes sense, considering who it was. Maybe not to replace Oppenheimer, but an additional high level position.
Of course, with that failing, assuming it was real, and Steve's new health issue, things could be derailed for a time.
I read somewhere yesterday that they only earn around 1% interest on that cash, which some shareholders claim is a good reason for Apple to instead offer a dividend. I was curious why they can't get at least 3%.
Why would a bank pay 3% interest to Apple when they can borrow money from the Federal Reserve at .25%? I'm surprised Apple gets 1%.
True, Android is mostly phones, but you can bet they're counting the tablets and PMPs too.
Maybe, but I think they said phones. Even if they didn't, the percentage of other devices was a small percentage, unlike with Apple. Did you post on the Macworld live blog tonight?
No doubt mine are but a twig in a forest of countless questions that could be asked -- the detailed answers and strategies to which Apple has no doubt discusses internally but need and want to keep bland in public discourse -- it's just inquiring minds are, well, you know, curious.
It would have been interesting just to see whether they would have answered it.
To me, what's most remarkable about Apple's continued record-breaking success is that almost everything they sell is priced higher than the competition and that they accomplished this in what is still a terrible world-wide economy (in spite of a recovering stock market.)
Imagine what Apple would be accomplishing had there been no recession.
I do think that in the long term, Apple is planning to get involved in totally new businesses. Otherwise, why would they need all that new space in that new campus? And why are they supposedly intending on doubling the size of the server farm?
My bet is that Steve deferred announcing his leave until these numbers could be announced so that there'd be little overall negative impact on the stock price (although I've always gotten the impression that Steve never managed the company to the stock price.)
well yeah right! , simply amazing numbers. The Ipod touch too. I think I'm going to get and iPod touch and attach a wi max 4G router to it, then make calls for virtually nothing over skype. Theres plenty of apps to do Texts and SMS. Why people buy iPhones is a mystery to me, yeah I know its harder to receive calls but hey, Is paying over
199+(24mths*85)=> $2239.00
or 199+(24mths*105)=> $2719.00 both are 1 GB per month data
for ONE device , ONE freaking device?
Compared with this: -
Wi-Max (4G) + Ipod touch (month to month contract, unlimited data plan, with up to 5 wifi devices)
($50*24)+ 299 => $1399.00
This is a saving of between $840 - 1320, is imho a really good deal given that I can get the same and more - up to 5 wi-fi devices ie:- run a laptop, iPad, ipod touch and Kindle
Plus I can stop and start the Wi-Max plan as needed to save more
Go for it. But be sure to check back in after you realize how little you've valued your own time and frustration in the equation.
Comments
Vapor. Invisible. BOOYAH. Eat that iPad. (Oh wait, you can't. Because you can't find it.)
Neither can anyone who wants to pay money for it.
I wonder what it feels like to have 60 billion in cash...
Kind of hard on your back. Gotta lift from the knees.
I've been saving my Dixie cups.
Good one!
So it turns out that Apple is more cautious about preserving their capital then, say, CitiBank. Why am I not comforted?
Well, banks haven't proven to be cautious at all, have they? How much did Citigroup lose on those mortgage derivatives? I assume that Apple isn't buying other companies debts either, as banks were doing. I'm not concerned. If you were right about your concerns, the cash and investments would have seen a big drop during 2009. It didn't.
I'm not so good at media multitasking. My hands were full just listening to the audio.
Good to know that it wasn't just me. Maybe the analysts were still trying to digest the incredible numbers and processing where and how their projection models need adjustments.
With respect to the US market, I'd also wish they discussed the potential impact of US mobile carriers' data-cap and paid packet content prioritization. How will it change consumer behaviour? Does Apple need to enter into agreements with each carrier? What does the change between Google and Akamai mean for Apple streaming?
Those are interesting questions, but likely too specialized for that call. Apple is still mostly an electronics consumer company. You'll see questions like that on calls for other companies.
Apple still considers the device to be a "hobby."
They need the right content deals before this thing is going to take off. If they sold a million of them this past quarter, that's really $100M in revenue, which works out to 0.37% of total revenue, an insignificant amount.
By contrast, they sold 7.3 million iPads at an ASP of $630, giving $4.6B in revenue. That's significant.
They really need to sell ten times as many Apple TVs before the device has any relevance to the bottom line.
I agree, the impact can almost get lost when contracting the significant digits, however, it's still a distinct platform and a distribution gateway into the home. I know there's a 'go to market strategy challenge' (in SJ words) but it'd be useful to know where things stand.
iPad cannibalization of the Mac: "Yes, I think there is some cannibalization," Cook said. "But I also think there is a halo effect."
"We have introduced millions of people in Asia to Apple through the iPhone. And we're now introducing many more through the iPad, and I think some of those decide to buy a Mac."
"If this is cannibalization, it feels pretty good."
Apple still has a low share of the PC market, so cannibalization isn't a concern to them. "The other guys lose a lot more. And we have a lot more to win because of that."
If Apple is not worried about "cannibalization" then they should have no problem selling that midrange Mac tower that people have been asking for.
Here's an interesting group of numbers I haven't seen reported yet:
iPhone: 16,240,000
iPad: 7,330,000
iPod Touch: 10,000,000 (19.45 million units, over half of which were iPod touch)
Apple TV: 1,000,000 (we know they sold at least this many)
Total IOS devices sold this quarter: 34,570,000
Average IOS sales per day over the last quarter: 384,000.
Looks to me like IOS is outselling Android by a huge margin, since they have only recently started claiming over 300,000 per day
If Apple is not worried about "cannibalization" then they should have no problem selling that midrange Mac tower that people have been asking for.
I think it doesn't fit into where they want to go. I doubt it's cannibalization.
Good one!
Mad Magazine, circa 1965. Got a mind like a rusty trap.
Well, banks haven't proven to be cautious at all, have they? How much did Citigroup lose on those mortgage derivatives? I assume that Apple isn't buying other companies debts either, as banks were doing. I'm not concerned. If you were right about your concerns, the cash and investments would have seen a big drop during 2009. It didn't.
Right, that's what I was driving at. The banks treat their capital like... capital. Apple treats their capital like... Fort Knox.
Aug 27, 2010
Apple Death Knell #54: Apple: Short Term Winner, Long Term Loser
By Fabrice Grinda, Published in BusinessInsider
Relevant Quote:
Android, with its relative openness, seems to be playing the role Windows played for the Mac. [?] On the DOS, then Windows side, the constant competition between PC makers, processor makers, and software developers, while less elegant and functional at the beginning, given enough time led to a plethora of offerings and innovation that not only copied many of the Mac?s best features but extended them.[?] The combination of faster PCs with more software at lower prices eventually completely marginalized the Macintosh.
Steve Jobs seems to be repeating the same mistake all over again. The elegant integration between the iPhone, iTunes and the App Store is definitely a current source of comparative advantage. It is easier to offer a better user experience at the beginning when you limit the form factor and completely control the hardware and software. The iPhone 4 is clearly the best smartphone on the market. The apps in the Apple App Store are clearly the best apps on the market.
However, Apple?s insistence on having a single form factor, on being a premium player at a premium price point (to carriers at least), and its arbitrary decisions with regards to what apps make it in the App Store will eventually make Apple a niche player. Even if Apple keeps innovating and has the best phone on the market, it won?t matter.
http://www.macobserver.com/tmo/death_knell/
I think this statement and analysis has to be taken as a very long term view. Say 5 or 10 years down the road. The big problem this analysis has is, its not exactly the same as the PC wars of the 90's. That, and the fact that the consumer electronics landscape is far different. Apple has never been this big ever. Sure Apple will have to deal with the coming of a $50 android phone, but the big difference is Apple has seperated themsleves more then ever in their history as the in style, easy to use, high quality, cool product.
I posted this in the previous article as well, but it is worth repeating:
Here's an interesting group of numbers I haven't seen reported yet:
iPhone: 16,240,000
iPad: 7,330,000
iPod Touch: 10,000,000 (19.45 million units, over half of which were iPod touch)
Apple TV: 1,000,000 (we know they sold at least this many)
Total IOS devices sold this quarter: 34,570,000
Average IOS sales per day over the last quarter: 384,000.
Looks to me like IOS is outselling Android by a huge margin, since they have only recently started claiming over 300,000 per day
To be fair, Android is still almost all phones. If we're comparing phone sales to phone sales, they are ahead now. Will it remain that way? Probably, but who can say for sure?
To be fair, Android is still almost all phones. If we're comparing phone sales to phone sales, they are ahead now. Will it remain that way? Probably, but who can say for sure?
True, Android is mostly phones, but you can bet they're counting the tablets and PMPs too.
google does not care if you want the latest OS you need to upgrade you phone.
I understand you of course, I know its an ad/search based strategy and in some ways it even worse than the Wintel situation of the 90's where in order to get the latest release one had to buy a new computer.
What is going to be interesting though this time around is that given the 2 year re-buy on phones, most folks (Mom and Pop) won't be upgrading their phones to the lastest version of Android until their contract us up and they buy a new phone/contract.
So they will miss out on the latest and greatest features as compared with iPhone users who for the most part can rely on their iPhone being easily upgradable for at least 2 years in the iTunes/Apps ecosystem.
In the end I suppose it won't make much difrerence really except possibly many of the newer apps won't be really executable on anything but the lastest phones. Time will tell how much of an impact this fragmentation will affect peoples perception of Android and how much of an annoyance it becomes and thus play into Apples hands?
Those are interesting questions, but likely too specialized for that call. Apple is still mostly an electronics consumer company. You'll see questions like that on calls for other companies.
No doubt mine are but a twig in a forest of countless questions that could be asked -- the detailed answers and strategies to which Apple has no doubt discusses internally but need and want to keep bland in public discourse -- it's just inquiring minds are, well, you know, curious.
Mad Magazine, circa 1965. Got a mind like a rusty trap.
At least you've still got it.
Right, that's what I was driving at. The banks treat their capital like... capital. Apple treats their capital like... Fort Knox.
I'd rather be safe than sorry. You know how our conversation over this has gone throughout the years. Neither of us would like to see a really big purchase, though they could always make one that "surprises and delights". But they could make a number of smaller, but still large ones that do make sense. And no, I have no idea as to what they're thinking.
It now looks that if they make no large purchase this year, they could have, not $70 billion, but $80 billion; maybe even more. I can't see it getting to that point. But it's much more difficult for stockholders to force the issue than it was with Microsoft. There, the stock had not only stagnated, but was down in actual dollars, and much further down when inflation was taken into account. And I'm not talking about the absurd valuation they had before The Fall.
But, they will likely do something. I don't know if it was true about the CFO story, but it makes sense, considering who it was. Maybe not to replace Oppenheimer, but an additional high level position.
Of course, with that failing, assuming it was real, and Steve's new health issue, things could be derailed for a time.
And yet still no white iPhone.
We did see reports today of the white iPhone coming to Best Buy and Vodafone in Feb ...
I read somewhere yesterday that they only earn around 1% interest on that cash, which some shareholders claim is a good reason for Apple to instead offer a dividend. I was curious why they can't get at least 3%.
Why would a bank pay 3% interest to Apple when they can borrow money from the Federal Reserve at .25%? I'm surprised Apple gets 1%.
True, Android is mostly phones, but you can bet they're counting the tablets and PMPs too.
Maybe, but I think they said phones. Even if they didn't, the percentage of other devices was a small percentage, unlike with Apple. Did you post on the Macworld live blog tonight?
No doubt mine are but a twig in a forest of countless questions that could be asked -- the detailed answers and strategies to which Apple has no doubt discusses internally but need and want to keep bland in public discourse -- it's just inquiring minds are, well, you know, curious.
It would have been interesting just to see whether they would have answered it.
Imagine what Apple would be accomplishing had there been no recession.
I do think that in the long term, Apple is planning to get involved in totally new businesses. Otherwise, why would they need all that new space in that new campus? And why are they supposedly intending on doubling the size of the server farm?
My bet is that Steve deferred announcing his leave until these numbers could be announced so that there'd be little overall negative impact on the stock price (although I've always gotten the impression that Steve never managed the company to the stock price.)
aapl is doomed...
well yeah right! , simply amazing numbers. The Ipod touch too. I think I'm going to get and iPod touch and attach a wi max 4G router to it, then make calls for virtually nothing over skype. Theres plenty of apps to do Texts and SMS. Why people buy iPhones is a mystery to me, yeah I know its harder to receive calls but hey, Is paying over
199+(24mths*85)=> $2239.00
or 199+(24mths*105)=> $2719.00 both are 1 GB per month data
for ONE device , ONE freaking device?
Compared with this: -
Wi-Max (4G) + Ipod touch (month to month contract, unlimited data plan, with up to 5 wifi devices)
($50*24)+ 299 => $1399.00
This is a saving of between $840 - 1320, is imho a really good deal given that I can get the same and more - up to 5 wi-fi devices ie:- run a laptop, iPad, ipod touch and Kindle
Plus I can stop and start the Wi-Max plan as needed to save more
Go for it. But be sure to check back in after you realize how little you've valued your own time and frustration in the equation.