Perhaps products go through cycles where there are spurts of innovation, and then not much new for a while. Apple was massively ahead of the competition with the iPhone, but the step from the iPhone 4S to the iPhone 5 wasn't significant for many people. (Many people in this discussion who love Apple products seem to rave about their iPhone 4S, not 5.)
The lack of game-changing new functionality in the iPhone 5 created an opportunity for Google Android to catch up to iOS, and Samsung and others to catch up on the hardware front. Even if you think that the iPhone is still better, the gap is much smaller than it was when the earlier iPhone models were launched.
Paulo, one other quick thought:The core argument of your article is correct: Many people love Apple's products and will pay more for them (as some commenters have said), but Apple's differentiation is shrinking, and many other people will move to other products. (An iPhone is no longer *cool*.)
Here's a perspective from a publisher: We (Seeking Alpha) offer apps for iPhone, iPad and Android. But Android is much easier to develop for, because Apple imposes a time delay in releasing updates to apps which greatly increases the time between iterations.
The result is that the Seeking Alpha Android apps are far better than our iPhone app (which we'll hopefully upgrade soon to bring it up to par). And, importantly, we offer a bunch of extremely popular Android apps which we don't yet offer for the iPhone: http://bit.ly/17nQszI
Barnes & Noble (BKS) announces Google Play is available for Nook HD products. Though the move is a further capitulation by B&N from offering up a closed eco-system, it also increases the number of apps available to consumers to 750K from 10K to make the Nook more attractive. Barnes & Noble is also cozying up to Google on the browser front with Chrome set to replace the existing default browser. [View news story]
Jason, totally agree, particularly since this is an OS update which is backward compatible on an already-purchased Nook.
BKS has to make a big push for market share to keep the NOOK ecosystem (bookstore etc) relevant. So it will get very aggressive about pricing.
Do you know what's in your preferred stock ETF? The PowerShares Financial Preferred Portfolio (PGF) has nearly all holdings in perpetual preferreds - fixed yields with no maturity dates, thus particularly vulnerable to rising rates. The iShares Preferred Stock ETF (PFF) has just 45%. Mutual preferred funds, though more expensive, might offer even better protection against higher rates - they're able to participate in the OTC market where much of the action in floating-rate preferreds takes place. [View news story]
Wonder whether these are cases of some people looking for yield without fully understanding the risks. One of the effects of low interest rates.
Barnes & Noble (BKS) announces Google Play is available for Nook HD products. Though the move is a further capitulation by B&N from offering up a closed eco-system, it also increases the number of apps available to consumers to 750K from 10K to make the Nook more attractive. Barnes & Noble is also cozying up to Google on the browser front with Chrome set to replace the existing default browser. [View news story]
Alexander, it's v. unlikely that GOOG would buy BKS. It has hardware and patents covered with its MOT acquisition, and doesn't need any other assets owned by BKS.
I personally think this will put pressure on AMZN's Kindle business. There are now two players releasing tablets at cost in a push to make money from services, but BKS has a fully fledged Android tablet whereas AMZN has a tablet that doesn't run most of the apps people want.
Just imagine the "Which tablet should you buy?" articles before next holiday season. "The Kindle is great and cheap, but doesn't run most of the apps you want. The Nook is great and cheap and runs everything you want (including the Kindle app). The iPad is beautiful and runs everything you want, but is $200 more than a Nook or Nexus 7."
Barnes & Noble (BKS) announces Google Play is available for Nook HD products. Though the move is a further capitulation by B&N from offering up a closed eco-system, it also increases the number of apps available to consumers to 750K from 10K to make the Nook more attractive. Barnes & Noble is also cozying up to Google on the browser front with Chrome set to replace the existing default browser. [View news story]
This is a *very* smart move. I'll now consider buying a Nook, whereas the lack of apps was a decisive factor for me in not buying a Kindle.
BKS seems to understand this - note what a big deal they're making about adding Google Play on the Nook website: http://bit.ly/13Rsk8o
I wonder whether AMZN will be forced to open up the Kindle to Google Play as well.
One final thought: Don't you think Google needs to change the name of its app store? "Google Play" suggests it's for games only.
The Nexus 7 might be about to get cheaper: in addition to predicting a summer launch for the next-gen 7, a source tells Reuters Google (GOOG) is thinking of either selling the device for $149, or selling it for $199 while discounting the current version (starts at $199). The next-gen 7 is also said to have a thinner bezel (like the iPad Mini) and a higher-res display. The reported pricing could put pressure on Amazon (AMZN), which sells the Kindle Fire HD for $199 and the current Fire for $159. Separately, SamMobile reports Samsung (SSNLF.PK) is working on a new high-end 10" Galaxy Tab, and 5.8" and 6.3" "Galaxy Mega" phablets. [View news story]
Wouldn't be surprised if Google's Nexus tablets and other Android tablets take huge market share. I've been using an iPad mini and a Google Nexus 7. The Nexus 7 has one huge advantage over the iPad mini - it's much more comfortable to hold in one hand, and fits in a (largish) pocket.
Surprisingly, the Seeking Alpha apps which we released for Android phones look amazing on the Nexus 7. They're listed here: http://bit.ly/17nQszI
Google (GOOG) looks like it will avoid heavy penalties after it offered a package of proposals to settle an EU antitrust investigation into the company's search business. Google's offer reportedly includes making "users clearly aware" when it promotes its own specialized sites in search results, and allowing Internet publishers to opt out of "vertical" sites such as Google News and Google+. The company's proposals will be legally binding for five years. [View news story]
I stand corrected, Yigal. You evaded my criticism :-)
Google (GOOG) looks like it will avoid heavy penalties after it offered a package of proposals to settle an EU antitrust investigation into the company's search business. Google's offer reportedly includes making "users clearly aware" when it promotes its own specialized sites in search results, and allowing Internet publishers to opt out of "vertical" sites such as Google News and Google+. The company's proposals will be legally binding for five years. [View news story]
"Google (GOOG) looks like it will evade heavy penalties..."
Don't you mean "avoid" rather than "evade"? Evade = illegal.
The pace at which new technologies are disrupting companies makes it dangerous to be a value investor, argues VC Ashvin Bachireddy. As mobile devices, cloud software, e-commerce, and much else upends old business models, investing in a BlackBerry or an OfficeMax/Office Depot due to a low P/E can prove painful. "While there may still be opportunities for value investing, you need to be cautious of businesses that appear to be on a slow decline." His remarks seem prescient in light of what happened today to several PC-related names with low multiples. [View news story]
mysterywriter,
That was an outstanding comment. Not sure I agree with *everything* you wrote, but you're spot on about Buffett. Look at his investment in GS, for example: no other investor could get those terms.
On IBM, it's always been hard to understand the company fully, and the complexity gives it ways to manage earnings, which makes me uncomfortable as an investor.
The pace at which new technologies are disrupting companies makes it dangerous to be a value investor, argues VC Ashvin Bachireddy. As mobile devices, cloud software, e-commerce, and much else upends old business models, investing in a BlackBerry or an OfficeMax/Office Depot due to a low P/E can prove painful. "While there may still be opportunities for value investing, you need to be cautious of businesses that appear to be on a slow decline." His remarks seem prescient in light of what happened today to several PC-related names with low multiples. [View news story]
Value investing and tech stocks have rarely gone together, because technology markets exhibit strong economies of scale and networking effects, leading to "winner takes all" outcomes. For that reason, most value investors (eg. Buffett) have avoided tech stocks.
Office supply retailing is a different type of market. Retailers of technology thrived in the Wintel world because there were multiple hardware vendors all running MSFT Windows. (The OS was a winner takes all market for MSFT.) But then Apple disrupted the retailers by winning the next gen OS market from MSFT, going vertically integrated, and opening its own retail stores.
Bottom line: value investing and tech stocks never went together. And outside tech, value investing (like dividend investing) is alive and well.
Why This Rally Is More Broad And Sustainable [View article]
In the 2000 bubble, note also the telcos' inflated share of the S&P 500. It was a TMT (tech, media and telecom) bubble.
If bubbles are largely sector-driven and not broad market phenomena, that would be a strong argument for using an equal weighted ETF (RSP) instead of a market cap weighted ETF (SPY).
Israel has started production of natural gas from its offshore Tamar field, taking the country further along the road towards energy independence. The news is also a boon to the companies who have been developing Tamar - which holds 10T cubic feet of gas - including Noble Energy (NBL) and Delek Group (DGRLY.PK). [View news story]
Is the discovery fully priced in to DGRLY.PK - or is there more upside? Interested to hear views of anyone holding the stock.
Apple's Magic Is Broken [View article]
The lack of game-changing new functionality in the iPhone 5 created an opportunity for Google Android to catch up to iOS, and Samsung and others to catch up on the hardware front. Even if you think that the iPhone is still better, the gap is much smaller than it was when the earlier iPhone models were launched.
Apple's Magic Is Broken [View article]
But isn't that already priced in to the stock?
Apple's Magic Is Broken [View article]
The result is that the Seeking Alpha Android apps are far better than our iPhone app (which we'll hopefully upgrade soon to bring it up to par). And, importantly, we offer a bunch of extremely popular Android apps which we don't yet offer for the iPhone: http://bit.ly/17nQszI
Barnes & Noble (BKS) announces Google Play is available for Nook HD products. Though the move is a further capitulation by B&N from offering up a closed eco-system, it also increases the number of apps available to consumers to 750K from 10K to make the Nook more attractive. Barnes & Noble is also cozying up to Google on the browser front with Chrome set to replace the existing default browser. [View news story]
BKS has to make a big push for market share to keep the NOOK ecosystem (bookstore etc) relevant. So it will get very aggressive about pricing.
Do you know what's in your preferred stock ETF? The PowerShares Financial Preferred Portfolio (PGF) has nearly all holdings in perpetual preferreds - fixed yields with no maturity dates, thus particularly vulnerable to rising rates. The iShares Preferred Stock ETF (PFF) has just 45%. Mutual preferred funds, though more expensive, might offer even better protection against higher rates - they're able to participate in the OTC market where much of the action in floating-rate preferreds takes place. [View news story]
Barnes & Noble (BKS) announces Google Play is available for Nook HD products. Though the move is a further capitulation by B&N from offering up a closed eco-system, it also increases the number of apps available to consumers to 750K from 10K to make the Nook more attractive. Barnes & Noble is also cozying up to Google on the browser front with Chrome set to replace the existing default browser. [View news story]
I personally think this will put pressure on AMZN's Kindle business. There are now two players releasing tablets at cost in a push to make money from services, but BKS has a fully fledged Android tablet whereas AMZN has a tablet that doesn't run most of the apps people want.
Just imagine the "Which tablet should you buy?" articles before next holiday season. "The Kindle is great and cheap, but doesn't run most of the apps you want. The Nook is great and cheap and runs everything you want (including the Kindle app). The iPad is beautiful and runs everything you want, but is $200 more than a Nook or Nexus 7."
Barnes & Noble (BKS) announces Google Play is available for Nook HD products. Though the move is a further capitulation by B&N from offering up a closed eco-system, it also increases the number of apps available to consumers to 750K from 10K to make the Nook more attractive. Barnes & Noble is also cozying up to Google on the browser front with Chrome set to replace the existing default browser. [View news story]
BKS seems to understand this - note what a big deal they're making about adding Google Play on the Nook website: http://bit.ly/13Rsk8o
I wonder whether AMZN will be forced to open up the Kindle to Google Play as well.
One final thought: Don't you think Google needs to change the name of its app store? "Google Play" suggests it's for games only.
The Nexus 7 might be about to get cheaper: in addition to predicting a summer launch for the next-gen 7, a source tells Reuters Google (GOOG) is thinking of either selling the device for $149, or selling it for $199 while discounting the current version (starts at $199). The next-gen 7 is also said to have a thinner bezel (like the iPad Mini) and a higher-res display. The reported pricing could put pressure on Amazon (AMZN), which sells the Kindle Fire HD for $199 and the current Fire for $159. Separately, SamMobile reports Samsung (SSNLF.PK) is working on a new high-end 10" Galaxy Tab, and 5.8" and 6.3" "Galaxy Mega" phablets. [View news story]
Surprisingly, the Seeking Alpha apps which we released for Android phones look amazing on the Nexus 7. They're listed here: http://bit.ly/17nQszI
The New Seeking Alpha Portfolio Android App [View article]
Google (GOOG) looks like it will avoid heavy penalties after it offered a package of proposals to settle an EU antitrust investigation into the company's search business. Google's offer reportedly includes making "users clearly aware" when it promotes its own specialized sites in search results, and allowing Internet publishers to opt out of "vertical" sites such as Google News and Google+. The company's proposals will be legally binding for five years. [View news story]
Google (GOOG) looks like it will avoid heavy penalties after it offered a package of proposals to settle an EU antitrust investigation into the company's search business. Google's offer reportedly includes making "users clearly aware" when it promotes its own specialized sites in search results, and allowing Internet publishers to opt out of "vertical" sites such as Google News and Google+. The company's proposals will be legally binding for five years. [View news story]
Don't you mean "avoid" rather than "evade"?
Evade = illegal.
The pace at which new technologies are disrupting companies makes it dangerous to be a value investor, argues VC Ashvin Bachireddy. As mobile devices, cloud software, e-commerce, and much else upends old business models, investing in a BlackBerry or an OfficeMax/Office Depot due to a low P/E can prove painful. "While there may still be opportunities for value investing, you need to be cautious of businesses that appear to be on a slow decline." His remarks seem prescient in light of what happened today to several PC-related names with low multiples. [View news story]
That was an outstanding comment. Not sure I agree with *everything* you wrote, but you're spot on about Buffett. Look at his investment in GS, for example: no other investor could get those terms.
On IBM, it's always been hard to understand the company fully, and the complexity gives it ways to manage earnings, which makes me uncomfortable as an investor.
The pace at which new technologies are disrupting companies makes it dangerous to be a value investor, argues VC Ashvin Bachireddy. As mobile devices, cloud software, e-commerce, and much else upends old business models, investing in a BlackBerry or an OfficeMax/Office Depot due to a low P/E can prove painful. "While there may still be opportunities for value investing, you need to be cautious of businesses that appear to be on a slow decline." His remarks seem prescient in light of what happened today to several PC-related names with low multiples. [View news story]
Office supply retailing is a different type of market. Retailers of technology thrived in the Wintel world because there were multiple hardware vendors all running MSFT Windows. (The OS was a winner takes all market for MSFT.) But then Apple disrupted the retailers by winning the next gen OS market from MSFT, going vertically integrated, and opening its own retail stores.
Bottom line: value investing and tech stocks never went together. And outside tech, value investing (like dividend investing) is alive and well.
Why This Rally Is More Broad And Sustainable [View article]
If bubbles are largely sector-driven and not broad market phenomena, that would be a strong argument for using an equal weighted ETF (RSP) instead of a market cap weighted ETF (SPY).
Israel has started production of natural gas from its offshore Tamar field, taking the country further along the road towards energy independence. The news is also a boon to the companies who have been developing Tamar - which holds 10T cubic feet of gas - including Noble Energy (NBL) and Delek Group (DGRLY.PK). [View news story]