davidw

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davidw
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  • Fingers crossed: Spotify might actually launch lossless audio in 2024

    macxpress said:
    People still use Spotify? 

    Yes. All the Spotify BS aside, their algorithm is superior to Apple Music. It just is. The recommendations, the playlists are just way better than anything Apple is doing with Music. 



    It's "superior" because Spotify collects way more data about their users than Apple. The ads in Spotify free ad-supported tier are targeted to the listeners, based on the data Spotify mined from their listeners. That data is also used when recommending songs for listeners. But because Apple do not sell targeted ads to its Apple Music subscribers, they have no need to mine as much data from them. Thus less data points from which to use when coming up with recommended music for their listeners.


    >It's this behavioral data that helps Spotify go big on personalization. Its privacy policy says it can use your data for personalization, troubleshooting, developing new features and technology, marketing and advertising, research, and for other legal reasons. Many of these personalization features are likely to involve systems that recommend new music and playlists to you.<


    williamlondon
  • Apple charms investors with record $110B stock buyback, dividend hike

    jdw said:
    AAPL has taken a huge hit recently, so it's common sense Apple should do its buyback now, in a major way.

    And before anyone gets excited about that "4% increase in the cash dividend," we're talking about a 1 penny increase here, and that increase is no different than previous increases, as per Apple's Dividend History here:

    https://investor.apple.com/dividend-history/default.aspx

    I'm with you about not getting excited over the $.01 dividend increase but I (and some of us here and maybe also you) have the luxury of applying the $.01 increase to AAPL shares that were purchased before Cook re-instated the dividend in 2012. Those shares split 7-1 and then again 4-1. If you don't factor in the 28X in splits, a pre-2012 share of AAPL is now getting $7.00 per quarter in dividend ($28 per year) plus is now worth 28 shares. And the $.01 increase amounted to a $.28/Q increase per pre-2012 share of AAPL (or $1.12 per year). 

    Of course if one purchased AAPL recently and whose shares didn't split, then a $.01 increase in dividend isn't anything to get excited about. Specially for a $183 stock with a .54% annual dividend yield. To put it in perspective, in 2012 AAPL was about a $610/share stock and the dividend then was $2.65/Q, that's an annual dividend yield of about 1.8%. But one now have to take into account that the annual dividend yield went down mainly because of the increase price per share (including splits) greatly outpaced the percent increase in dividend per year. And not because Apple got cheaper and cheaper, when it came to paying a dividend. Even though Apple had increase their dividend every year, their annual dividend yield had gone down nearly every year because of the increase in AAPL share price. Much better than the other way around, where the annual dividend yield increases every year because the share price goes down.

    Based on current share prices .... the annual dividend  yield for some common stocks ....

    META is . ........    .45%
    GOOG is .........   .47%
    AAPL is ...........   .54%
    MSFT is ..........   .75%
    ORCL is .........   1.39%
    INTC is  ...........  1.64%
    WFC is ............  2.34% (Wells Fargo)
    BA is  ..............  2.6% (Bank America)
    TGT is ............   2.78% (Target)
    KO is .............   3.13% (Coca Cola)
    CMCSA is ......  3.23% (Comcast)
    XOM is ..........   3.27% (Exxon)
    DUK is ..........   4.13% (Duke Energy)
    BBY is ...........  5.19% (Best Buy)
    PM is ...........    5.34% (Philip Morris)
    VZ is .............   6.83% (Verizon)

    If dividend income is important, then investing in tech stocks is not the way to go.



    marklark
  • Apple blows away Wall Street earnings estimates, even with weak China iPhone sales

    You also have to account for the 3% to 3.5% inflation from Jan, Feb, Mar 2023 to Jan, Feb, Mar 2024 earnings, respectively.
    Inflation of what?  As far as I know Apple hasn’t raised the prices for any of their core products.
    $94.8B in early 2023 is the equivalent of 94.8B(1.03)=$97.6B in early 2024, so the inflation corrected percentage change in revenue is actually ((90.75-97.6)/97.6)*100=-7.0%. You have to at least beat inflation to have a true growth in wealth.

    Not only does it make zero sense to compensate for inflation, when comparing year to year "revenue" numbers, you have it backwards.

    Since there was 3-3.5% inflation from JanFebMar of 2023 to JanFebMar of 2024 (as you stated), shouldn't the 3-3.5% affect the 2024 numbers and not the 2023 numbers?
    So shouldn't you be increasing the 2024 revenue numbers due to any loss "value" of the dollar from inflation, when comparing them to 2023 numbers. The 3-3.5% inflation rate from 2023 to 2024 had zero affect on 2023 dollars. If anything, the 2022 to 2023 inflation rate affected 2023 dollars. 

    So applying the illogical thinking that the inflation rate should be included when comparing year to year revenue numbers, 2024 revenue of $90.75B would actually be $93.5B ($90.75 x 1.03) in 2023, if it weren't for the 3-3.5% inflation that occurred from 2023 to2024.

    And "revenue would not the measurement of "wealth". Profit would be the measurement of  "wealth". In Q2 of 2023 net income was $24.16B, compared to $23.26B in Q2 of 2024. That's a decrease of $.9B from 2023 or 3.7%. So with inflation at 3.5%, could we say that when accounting for inflation, Apple managed to make almost the same profit in Q2 2024 as in Q2 2023. Of course we wouldn't.

    Inflation do not increase the value of yesterdays dollar, it decreases the buying power of today's dollar. A dollar is still a dollar.  
    Anilu_777wonkothesanewilliamlondonronnmike1
  • Meta needs other companies & developers to challenge Apple Vision Pro

    avon b7 said:
    ssfe11 said:
    A social media company competing with Apple on hardware/software is just silly.
    In this case, isn't it the other way around? 

    Meta is the established and dominant player and Apple is the one stepping in. 

    Once again you have miss understood the nuance of what ssfe11 was saying about competition. He is commenting on how Meta (a social media company) is now trying to compete with Apple (a hardware/software company) by trying to create better hardware/software integration for their VR glasses. Which they seem to only be able to do by having others create Meta VR glasses with better hardware/software integration, for them. While Apple can do that all in-house and have a long successful history of creating devices with strong hardware/software integration that consumers wants to use and are willing to pay extra for.

    That doesn't mean that Meta can't still compete with Apple on price. Selling low cost devices that makes little profit or at a loss, just to gain market share, is not one of Apple's strong points when it comes to competing. Just like how creating devices with strong hardware/software integration is not one of Meta strong points.
    ssfe11williamlondon
  • EU's antitrust head is ignoring Spotify's dominance and wants to punish Apple instead

    avon b7 said:
    Xed said:
    avon b7 said:
    Xed said:
    avon b7 said:
    dewme said:
    jimh2 said:
    Apple's 30% is highway robbery.

    Once Apple is forced to allow normal software installation on iDevices, I won't care what they charge.  As far as I'm concerned, they can charge 99% on their app store, and I wish they would, it would encourage developers to pull their apps off of it and distribute from their own websites.

    But since Apple still doesn't let us install software normally, I'm looking forward to the EU punishing them.
    You really have no clue as to how the selling of anything works. With your logic Walmart would not be permitted to apply their overhead costs (taxes, insurance, rent/mortgages, compliance, employees, travel, maintenance, training, etc.) to their items. If Walmart can buy a bike for $50 they should have to sell it for $50, which would at a loss.

    Apple will win as the software tools to create an App are not free and $99 is a token amount that assumes they will make money off of the App Store. 

    It is safe to assume if Apple added a setting to block 3rd party app stores the vast majority of users would select it. The EU is catering to a bunch of grifters with Spotify being the largest. Were I Apple I would drop the price of Apple Music to $0 and choke Spotify out of business.
    Apple’s $99 per year fee for developers is the deal of the century for anyone who has done professional software development on Windows. I recall spending north of $1500 USD for individual MSDN professional versions. The lowest subscription price for MSDN professional is around $45 USD per user per month. Enterprise subscriptions are $250 USD per user per month. 

    I’ve always felt that Apple priced its developer plans and App Store fees to allow individual and small independent software d
    Apple needs developers for success in its major revenue drivers. 

    We know, from the billions it has paid out to those developers who charge for their apps, that it's a profitable business. 

    It's definitely a good deal from a software development perspective but charging for the actual cost of development would definitely deter developers from writing apps for the platform. 

    This is similar to major OS upgrades that used to be around $129 but then it made more sense for them to be offered for free and increase the amount of people moving up to the latest OS release which developers can then target more easily. 

    It makes business sense to keep the fees low although I suppose they could even be offered free and still be 'profitable' as a revenue driver and through commissions of the final product. 

    As usual, you start off saying obvious and then move onto word salad. Dewme's point is salient. Access to those tools are inexpensive. The problem with the game Spotify  (and Fortnight) s playing is that they'll eventually end up paying more than they are now if Apple changes how the IDE is accessed.

    You may not realize this,, but it used to cost a lot more to be a just a Mac app developer. I think it was around $250 per year and your revenue options were much limited  due to much fewer OSes and users to build for.
    I agree with Dewne. The tools are great value - as tools. 

    Obviously that can only be achieved if those same tools are generating revenues elsewhere. 

    Where those revenues are generated is through commissions and Apple has had monopoly control over those and only modified them under regulatory threat or obligations. 

    That is not word salad. It's fact based context. 
    They do not have a monopoly on "commissions" and it's been shown that Spotify uses Apple's tools and don't pay nearly their fair share. These actions will end up hurting all developers because Apple will simply find a different way to get compensated for building the tools that make their SW great.
    In the EU they won't have a monopoly on commissions but up until now they have. Not only that, they did not offer better terms until they were pushed to do so. 

    Spotify has nothing to do with Apple's developer tools pricing, and never will, because spotify is just one app developer out of thousands or hundreds of thousands. 

    'Fair share' is a curious claim. 

    Has Apple paid its fair share of taxes around the world? Tim Cook says Apple has values. Not only that. He says Apple pays every cent of taxes it owes. It's only when you wade through the complaints and paperwork that you realise that Apple was actually deciding for itself what to make available for taxation and in one famous case that amounted to 0.005% for one year (according to an EU investigation). Then you browse through the Paradise Papers and Apple’s name pops up more than it should with its external representitives seeking shadowy places to move money to where oversight is less stringent. 

    I think Apple has had more than its fair share of just about everything when it comes to collecting money. 

    Is it fair for those trying to make money from their apps to have to 'subsidise' those who don't have to pay more than their subscriptions? Or should prices go up for those who offer apps for free? Or is Apple doing all the subsidising itself? How can we know? Is that fair? Or does $99 cover the cost of everything involved. 

    Hasn't Apple already had its 'fair share' for years by simply not allowing any other stores to even exist while taking a cut out of every paid app? It does not matter if it's 5% or 50%. The commission percentage is irrelevant to that debate if Apple is the only one getting the commission because Apple itself determined competition should not exist. 

    Isn't it trying to keep its grip on those commissions, even now, by not allowing competition to exist in places like the US? Is that fair?

    It definitely looks like enough authorities think it's unfair.

    UK, EU, Japan, South Korea have pretty much made it clear that things need to change. Each one might go about that in a different way but I doubt any of them would use 'fair' to describe any of Apple's practices where competition isn't even allowed.

    Has Apple abused its dominant position? A lot of authorities seem to think so. What does the DoJ think? 

    And don't think this is an 'everybody against poor Apple' thing because it's not. 

    In your mind, when did Apple iOS become "public domain" or "open source" or deemed a "public utility"? The last I checked, Apple iOS is still Apple copyrighted IP. And copyright laws in the US and the EU, grant the owners of copyrighted works the exclusive right to monetize them. So of course Apple have the right to collect a commission on every app that depends on their IP, that is iOS. But what gives others the right to open a store in iOS, sell iOS apps and collect a commission .... without compensating Apple for the for-profit use of iOS?

    Taylor Swift is one of the richest musician/songwriter today. Can anyone use any of her copyrighted works to profit from, without compensating Swift or at least get her  permission? Of course not. It doesn't matter that Swift is a billionaire and also make tons of money selling her image to advertisers and have her own product lines. It does not diminish the copyright rights she have on her musical works. Nor require her to give away her music for free.

    So it doesn't matter if Apple were to allow (or forced to allow) third party app stores. They still have the right to charge others for the for-profit use of their IP. Can you set up a kiosk in the middle of a shopping mall to sell your handcrafted items, without paying the owner of the mall rent and/ or a percentage of your gross sales? Don't the property owner have the right to charge something for the space your kiosk is occupying in their mall? Shouldn't the mall owners be compensated for the expense of attracting shoppers to the mall, so you have a steady stream of customers to sell your items to? Shouldn't the mall owners have the right to limit what you can sell, on their property? What if the owner don't want you selling adult DVD's, or counterfeit purses or items that competes with vendors paying rent for retail store fronts in the mall? Do the mall owner have the rights to control what is being sold on his property?

    So why do you think Apple should allow third party app stores to sell apps that runs on iOS, in an app store that uses iOS, to customers that Apple spent lots of money on in attracting them to buy iPhones (or other Apple devices), without being able to collect a commission to compensated for the use of the IP Apple spent billions on developing?  Can you demand to set up a "store" inside Spotify Music app, to sell your digital  downloaded music to Spotify customers and not compensate Spotify for the use of their IP? Do developers have the right to use Epic Games IP to create their own virtual goods for Fortnight and then demand that the government force Epic Games to allow other stores inside their Fortnite game because the Epic Fortnite Store have no competition and is charging too much for the virtual goods in their game? 

    There is no such thing as a "monopoly" on commission. Monopolies exist in defined "markets" and commissions are not a "market", by any definition where one could have a "monopoly" that can be use in anti-trust cases. Just because Apple is granted the exclusive right to collect a commission for the for-profit use of their IP, it doesn't mean that Apple have a "monopoly" on commission. That's as nonsensical as saying .......  Walmart have a "monopoly" on the markup of every item they sell in their Walmart Stores. Or,  the landlord of an apartment building have a "monopoly" on the rent collected from the tenants in the building. You seem to just want to throw in the word "monopoly" when talking about Apple, without the least bit of understanding about what a "monopoly" is, just to make it appear that Apple do have a "monopoly" in something.

    BTW- As far as i know, Apple has paid all the taxes that they are legally required to pay. If you have a problem with whether it was their "fair share", then take it up with your government about changing the tax laws. So far, the EU General Courts have agreed that Ireland did nothing illegal by charging Apple a tax rate that they thought was "fair". Even though the EU Commission is crying that Apple ....... "didn't  pay their fair share"..... in taxes. 

    The free Spotify App on iOS is about one of the top ten downloaded apps from the Apple App Store. An yet Spotify is paying Apple nothing for having their app on hundreds of millions of Apple devices. Is Spotify paying their "fair share" for the use of Apple IP?  Yes, because Apple App Store policies allows for this. So long as Spotify abide by the rules, it's fair. And no less fair than when Apple abide by the tax laws, no matter how some might cry  ......Apple is not paying their "fair share".


    Download numbers that I'm sure leads to the increase of revenue Spotify get from advertising in their free ad supported music streaming tier.    



    tmaywatto_cobra