I actually don't see why the Mini is cheaper to make than the iPad 2 at all, and the iPad 2 is a mature product (= money machine). Just wait a quarter, and the Mini margins will be back at the same level.
So really then the mini isn't overpriced, unless one thinks Apple should have even smaller margins. I'll admit I was hoping for $299 But I guess making something smaller doesn't mean it's cheaper to make.
Thanks to those who replied directly to my query about the AAPL stock dip(?). I'm doing a bit of brushing up of my rusty economics (which wasn't much and was years ago) and also feretting around for what else I can learn from (starting with the Wikipedia, because it's the most accessible for me currently ).
Let's see - Mac sales held steady y/y (best ever September quarter sales), when most PC companies lost sales. They are entering Christmas season with new 13" rMBP, new iMac that is paper thin at the edge and relatively new 15" rMBP. How exactly did they drop the ball? Can you explain a better way of timing their releases?
Yes, the Mac sales hang steady. They would have done far more than hold steady if they'd not cocked up the desktop refresh. The reason they only held steady is that the large increase in notebook turnover was nerfed by the huge slump in desktop sales.
Interesting stat: In this quarter Apple (27M / 17% WW share) and Samsung (57M / 35% WW share) combined shipped more than one of every two smartphones. Not a lot of room for the dozens of other providers.
Interesting stat: In this quarter Apple (27M / 17% WW share) and Samsung (57M / 35% WW share) combined shipped more than one of every two smartphones. Not a lot of room for the dozens of other providers.
True, but in addition I am guessing the Apple net profits are probably 90% of the whole industry. Given that that getting into the smartphone market is an expensive proposition, Apple is positioned much better than everyone else (their gross margins on the iPhone, given carrier subsidies, are phenomenal), since they could drop prices by a factor of two if they really wanted to and still do very well.
I'm not talking about the comparison to competitors tablet products. I'm questioning why, at $329 are the margins significantly lower? I think many assumed the higher price than expected was to keep the high margins. According to Oppenheimer that isn't the case.
I'm one of those that is starting to doubt Apple's pricing strategy but more importantly am VERY concerned with supply chain challenges. It's easy to armchair quarterback, but true...Apple has a problem with supply chain quantity and quality, which is affecting build cost.
My guess is that Cook would've loved to offer the 16GB/$299 and 32 GB/$399, thereby making up lower margins of the 16GB with sales of 32 GB, but two supply chain challenges prevented this:
- #1 is obvious...the higher build quality costs too much (as opposed to Nexus/Amazon)
- #2 is the BIGGEST CHALLENGE...unit quantity is CONSTRAINED, so why drop the price when every single one would be sold at $329/$429 anyway?
Mark my words, this is one market segment where Apple would've loved to make up lower profit margins with higher unit sales...but they since they can't make them fast enough, they can't lower cost. Any dissenting opinion?
I love all this talk about build quality for the ipad mini and how it is soo much better than the competition. It has an aluminum back compared to rubber or plastic. Okay, awesome. But here is where everything about the mini screams cheap; no gps, crappy display with low ppi, touch input tries to replicate the 10" version, so much smaller pixel targets which equals missed touches, no ability to add additional storage (which even the Nex7 can do) and of course the usual no access to your file manager. And all that for $329. If you want internet capability, that will be $459! As of next week, a 32gb Nex7 will be $259 and a 16gb for $199. And the new quad core Nexus 10 is about to be released.
Apple is losing ground badly. 2 quarters of iphone sales now = 1 quarter of Samsung smart phone sales. Hell, the S3 by itself sold almost as many as all iphone 3gs, 4 and 4s combined. Now watch the ipad domination begin to diminish. iOS is old and stale, still playing catch up to Android, and Apple keeps rehashing the same looking iphone and ipad year after year. I havent seen any innovation from Apple since the iphone 4.
I love all this talk about build quality for the ipad mini and how it is soo much better than the competition. It has an aluminum back compared to rubber or plastic. Okay, awesome. But here is where everything about the mini screams cheap; no gps, crappy display with low ppi, touch input tries to replicate the 10" version, so much smaller pixel targets which equals missed touches, no ability to add additional storage (which even the Nex7 can do) and of course the usual no access to your file manager. And all that for $329.
So you're restating the same arguments that said the original iPad and iPhone couldn't possible be successful but you're saying it won't be at $170 less than the iPad you and your ilk said was going to flop. Well done¡
If you want internet capability, that will be $459!
Wanna bet the $329 iPad can connect to the internet?
…dont expect the mini to be competitive with a Nexus tablet.
1) It's amazing that Apple sells more units of their premium models and for a much longer period of time than all other competitors and yet it's only the "Apple faithful" that are buying them. Perhaps you need to rethink your slant against Apple when there are so many of these "iSheep" happy with their iDevices.
2) I don't expect it to be competitive with any 7" 16:9 tablet as it has a 42% larger display that is great for more than just watching movies in landscape mode and actually has a robust app market in place.
As of next week, a 32gb Nex7 will be $259 and a 16gb for $199. And the new quad core Nexus 10 is about to be released.
It's always soon with Android-based products. Soooon! Google should change their name to Godot Co.
Apple is losing ground badly. 2 quarters of iphone sales now = 1 quarter of Samsung smart phone sales. Hell, the S3 by itself sold almost as many as all iphone 3gs, 4 and 4s combined. Now watch the ipad domination begin to diminish. iOS is old and stale, still playing catch up to Android, and Apple keeps rehashing the same looking iphone and ipad year after year. I havent seen any innovation from Apple since the iphone 4.
1) So how many Galaxy S III's did Samsung sell compared to the iPhone 4S? How well did all other smartphone vendors due against the iPhone in the US? You counting all Android phones being used as feature phones is pathetic. Just look at the usage stats to see that despite the 4 trillion Android activations per day the iPhone with its one new model per year is still killing everyone else in every relevant way.
2) Yes, lets watch the iPad lead diminish despite Windows-based tablets having a decade head start.
3) Yeah, what is wrong with Apple to build upon a well thought out and refined OS that they got right the first time instead of throwing shit at a wall to see what sticks¡ If only they would change up their UI to be a confusing mess that people without real jobs want to spend time figuring out so they can feel superior for understanding the UI puzzle instead of actually having an OS that works well¡ Apple is so dum, D-U-M, dum¡
Comments
I'm sure they did their math on this scenario
Cheers,
Alex.
Quote:
Originally Posted by Harbinger
Let's see - Mac sales held steady y/y (best ever September quarter sales), when most PC companies lost sales. They are entering Christmas season with new 13" rMBP, new iMac that is paper thin at the edge and relatively new 15" rMBP. How exactly did they drop the ball? Can you explain a better way of timing their releases?
Yes, the Mac sales hang steady. They would have done far more than hold steady if they'd not cocked up the desktop refresh. The reason they only held steady is that the large increase in notebook turnover was nerfed by the huge slump in desktop sales.
APPL = APPELL PETE CORP
AAPL = Apple Inc.
A typo, I'm sure of that. But perhaps not known by some (although all other posts in this thread are correct).
Aren't you glad then that Apple didn't go the 7" route?
Please don't; you're already down under.
Interesting stat: In this quarter Apple (27M / 17% WW share) and Samsung (57M / 35% WW share) combined shipped more than one of every two smartphones. Not a lot of room for the dozens of other providers.
Quote:
Originally Posted by Gatorguy
Interesting stat: In this quarter Apple (27M / 17% WW share) and Samsung (57M / 35% WW share) combined shipped more than one of every two smartphones. Not a lot of room for the dozens of other providers.
#next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }True, but in addition I am guessing the Apple net profits are probably 90% of the whole industry. Given that that getting into the smartphone market is an expensive proposition, Apple is positioned much better than everyone else (their gross margins on the iPhone, given carrier subsidies, are phenomenal), since they could drop prices by a factor of two if they really wanted to and still do very well.
#next_pages_container { width: 5px; hight: 5px; position: absolute; top: -100px; left: -100px; z-index: 2147483647 !important; }
Quote:
Originally Posted by Rogifan
I'm not talking about the comparison to competitors tablet products. I'm questioning why, at $329 are the margins significantly lower? I think many assumed the higher price than expected was to keep the high margins. According to Oppenheimer that isn't the case.
I'm one of those that is starting to doubt Apple's pricing strategy but more importantly am VERY concerned with supply chain challenges. It's easy to armchair quarterback, but true...Apple has a problem with supply chain quantity and quality, which is affecting build cost.
My guess is that Cook would've loved to offer the 16GB/$299 and 32 GB/$399, thereby making up lower margins of the 16GB with sales of 32 GB, but two supply chain challenges prevented this:
- #1 is obvious...the higher build quality costs too much (as opposed to Nexus/Amazon)
- #2 is the BIGGEST CHALLENGE...unit quantity is CONSTRAINED, so why drop the price when every single one would be sold at $329/$429 anyway?
Mark my words, this is one market segment where Apple would've loved to make up lower profit margins with higher unit sales...but they since they can't make them fast enough, they can't lower cost. Any dissenting opinion?
Apple is losing ground badly. 2 quarters of iphone sales now = 1 quarter of Samsung smart phone sales. Hell, the S3 by itself sold almost as many as all iphone 3gs, 4 and 4s combined. Now watch the ipad domination begin to diminish. iOS is old and stale, still playing catch up to Android, and Apple keeps rehashing the same looking iphone and ipad year after year. I havent seen any innovation from Apple since the iphone 4.
I wish Samsung released eye glasses so you'd be able to see.
So you're restating the same arguments that said the original iPad and iPhone couldn't possible be successful but you're saying it won't be at $170 less than the iPad you and your ilk said was going to flop. Well done¡
Wanna bet the $329 iPad can connect to the internet?
1) It's amazing that Apple sells more units of their premium models and for a much longer period of time than all other competitors and yet it's only the "Apple faithful" that are buying them. Perhaps you need to rethink your slant against Apple when there are so many of these "iSheep" happy with their iDevices.
2) I don't expect it to be competitive with any 7" 16:9 tablet as it has a 42% larger display that is great for more than just watching movies in landscape mode and actually has a robust app market in place.
It's always soon with Android-based products. Soooon! Google should change their name to Godot Co.
1) So how many Galaxy S III's did Samsung sell compared to the iPhone 4S? How well did all other smartphone vendors due against the iPhone in the US? You counting all Android phones being used as feature phones is pathetic. Just look at the usage stats to see that despite the 4 trillion Android activations per day the iPhone with its one new model per year is still killing everyone else in every relevant way.
2) Yes, lets watch the iPad lead diminish despite Windows-based tablets having a decade head start.
3) Yeah, what is wrong with Apple to build upon a well thought out and refined OS that they got right the first time instead of throwing shit at a wall to see what sticks¡ If only they would change up their UI to be a confusing mess that people without real jobs want to spend time figuring out so they can feel superior for understanding the UI puzzle instead of actually having an OS that works well¡ Apple is so dum, D-U-M, dum¡