Seeking Alpha

Jefferies: Apple negotiating $100 iPhone 6 price hike with carriers

  • "Our checks indicate Apple (AAPL -0.3%) has started negotiating with carriers on a $100 iPhone 6 price increase. The initial response has been no, but there seems to be an admission that there is no other game-changing device this year," says Jefferies' Peter Misek.
  • Pac Crest cited the potential for higher iPhone 6 prices (owing to their expected larger displays) as a reason for upgrading Apple a month ago. As it is, the iPhone had a $637 ASP in the Dec. quarter, +$60 Q/Q thanks to strong 5S and soft 5C sales.
  • IDC estimates the smartphone industry's ASP was only at $335 last year, and will fall to $308 in 2014, as emerging markets continue growing their share of industry sales.
  • There's a good chance carriers will try to pass on most or all of any price hike to consumers, particularly given their recent efforts to lower subsidy spend, Pricing for Samsung's 5.7" Galaxy Note 3 (often sold for $300-$350 subsidized by U.S. carriers) points to an effort by carriers to charge a premium for high-end phablets.
  • In such a scenario, Apple would doubtlessly be counting on its high customer loyalty, along with pent-up demand for a bigger iPhone, to keep iPhone sales from slipping.
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Comments (89)
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    Good luck Apple ...
    14 Apr, 10:40 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    http://bit.ly/1lWTBQu
    "For all the attention and scrutiny it gets and for all the speculation and debate it sparks about whether it's done innovating, Apple remains fundamentally a very successful formula,'' says analyst John Jackson with IDC. "And that formula, along with the momentum it's created, remains intact.''
    14 Apr, 10:45 AM Reply Like
  • Tri Duong
    , contributor
    Comments (1497) | Send Message
     
    If Apple starts the base model at 32GB, use Sapphire glass and increase screen size, then they don't need luck. It will sell like hotcakes at $749. Will probably beat iphone 5S sales by at least 10%.

     

    Look what Samsung is giving you for $649. A large plastic case with an ugly back and a failed attempt at a fingerprint scanner. I have to give it to samsung for the outsanding screen. All other features like eyetracking software is mostly gimmicky and won't be used the vast majority of the time.

     

    I am in no way pro-Apple. I think the 5S was underwhelming as well with the only redeeming feature being a very good fingerprint scanner. There's nothing that would make everyone jump from a GS4 or an iphone 5.
    14 Apr, 12:16 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    " I think the 5S was underwhelming as well " ...

     

    has the latest Galaxy S done much better?

     

    "Overall, the Galaxy 5S is a very good phone, but not one compelling enough for me to recommend that you buy it to replace last year’s Galaxy or the current iPhone. But there’s one caveat: If you drop your phone in water a lot, you want this one."-- Walt Mossberg
    http://on.recode.net/1...
    14 Apr, 12:25 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Tri- What about the super fast, powerful and well respected A7 chip and additional features such as iBeacon?
    14 Apr, 01:04 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Samsung throws everything but the kitchen sink into each of their phones. From what I hear many features either don't work well or are unnecessary. Apple products are all about being innovative but simple and subtle. The philosophy of 'Less is More' has always been a company directive.
    14 Apr, 01:12 PM Reply Like
  • Randal James
    , contributor
    Comments (2799) | Send Message
     
    Braeburn

     

    Now changed to "Less for More."
    14 Apr, 01:26 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1497) | Send Message
     
    A7 chip: Unnecessary for iphone 5s. Great it's included but that's a lot of power pushing a small screen with the same resolution. Iphone 5 will run anything a 5S can.

     

    A7 chip in ipads: Great pairing due to the high res and people actually play graphics intensive games on it.

     

    ibeacon: Still relatively a gimmick. It needs at least a couple years to catch on. That's if it catches on.

     

    BTW I'm not complaining about the A7. I'm just saying it's not something anyone would upgrade to the 5S if they already had a 5. The only feature that made the 5S stand out and useful was the fingerprint scanner.
    14 Apr, 01:34 PM Reply Like
  • chopchop0
    , contributor
    Comments (3526) | Send Message
     
    Seriously... of course the AAPL bulls will paint this obvious drop in market share that will follow towards the holy grail of "better margins"
    14 Apr, 02:29 PM Reply Like
  • DougRk
    , contributor
    Comments (1592) | Send Message
     
    The problem is, for both Apple and Samsung, phones are just too good across the board. There is nothing compelling enough from any maker to warrant such prices. With so many good lesser makers producing very nice phones, margins simply can't hold up.
    14 Apr, 05:20 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Samsung and Droid users are typically much more price sensitive, not so with IOS secure/integrated longer term Apple users.
    14 Apr, 05:50 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    "There is nothing compelling enough from any maker to warrant such prices. "

     

    That is why Apple has to maintain its premium image. I have for the last year been writing on SA that needs to raise prices and not get into that commodity trap.

     

    Google's Nexus/Moto pricing strategy has indicated what top-of-the-line ought to cost. Even Samsung Galaxies can not maintain that premium as 4.7" screened older Galaxies are 2000 RMB cheaper than the the newest and greatest 5.0" Galaxy 4.

     

    That is why Apple needed to change the one year old 5 into a design differentiation from the new 5s, by creating the 5c-- so that the IPhone can maintain it premium.

     

    And I have been yet to see an 5s that is not champagne gold, when my step-father owns a 5 silver back, one cannot differentiate the difference as the exteriors are identical.

     

    And then the footprint of the 5-series to the 4-series is not easily noticed.

     

    Tim Cook earns the big bucks to keep Apple above the frey.
    14 Apr, 11:37 PM Reply Like
  • DougRk
    , contributor
    Comments (1592) | Send Message
     
    @sam, agreed that that is their strategy. But no telling if it will work in perpetuity.
    15 Apr, 08:12 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    They hike the price to offset market share loss, not for a .3" bigger screen. Desperation will sink in as sales further erode with lack of new product launches.
    14 Apr, 10:40 AM Reply Like
  • Jack Baker
    , contributor
    Comments (896) | Send Message
     
    They are not losing market share. The market numbers are inflated to include devices that are not being used for their smart capabilities. Apples market share of the "real" smart phone market is increasing. And, with 50% more surveyed people saying they will buy a larger iPhone 6 than they did for the 5s and an increased in price, Apple should kill-it on top line and bottom line growth starting in the third quarter of this year. And this is before the incremental gains from the iwatch, the new Apple TV, ibeacons, iphablet and any other new product category.
    14 Apr, 10:52 AM Reply Like
  • 2MuchDebt
    , contributor
    Comments (219) | Send Message
     
    @Jack: wasn't the survey based on the idea that the price of the iPhone 6 would remain unchanged at $199/2 year contract for 16GB? If the price is going up, less people would buy it.
    14 Apr, 10:57 AM Reply Like
  • shakazoid
    , contributor
    Comments (182) | Send Message
     
    hope you find a shrink soon for your icraziness, idelusion and igreed.
    14 Apr, 11:01 AM Reply Like
  • pat45
    , contributor
    Comments (338) | Send Message
     
    Not loosing market share. apple usually prices well, and if needs to lower price they will and rebate early buyers for price difference. If price too low they cannot raise price.
    14 Apr, 11:05 AM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (290) | Send Message
     
    Nothing in the survey addressed the price point of the iPhone6 as far as I am aware.
    14 Apr, 11:05 AM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    You can probably find such a psychiatrist listed under iShrink
    14 Apr, 06:01 PM Reply Like
  • Jack Baker
    , contributor
    Comments (896) | Send Message
     
    Yes, it was. But the price increase may be absorbed by the carriers. And, even if it is not, I don't think the numbers would come down that much. Most people I know would gladly pay another $100.00 for a bigger iPhone.
    15 Apr, 07:43 AM Reply Like
  • 6034700
    , contributor
    Comments (510) | Send Message
     
    We should all have such desperation.
    14 Apr, 10:43 AM Reply Like
  • june1234
    , contributor
    Comments (2659) | Send Message
     
    Its the ol "do you want it or not" negotiation.
    14 Apr, 10:47 AM Reply Like
  • u01bsb0
    , contributor
    Comments (646) | Send Message
     
    why is apple the only tech company who gets punished for not bringing out a new product category on a yearly basis?

     

    don't see any analysts saying microsoft, google, samsung, nokia, sony has to bring out a new product category to save themselves from being "doomed".
    14 Apr, 11:17 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    u)1bsb0

     

    Apple gets punished because it only has 3 products that make 90% of all its profits. If only one fails, the company fails. Microsoft and Google has hundreds of other products and business applications that make them robust and more resilient to market trends. If you don't know the differences between Microsoft, Google and Apple, maybe trading in Apple isn't your thing?
    14 Apr, 12:28 PM Reply Like
  • smart_investoor
    , contributor
    Comments (207) | Send Message
     
    "Google has hundreds of products that make them resilient" yet none of them brings in income. Google's profits has been stagnant lately. Motorola was a failure, Nest is waste of money, and ads is the only thing they make money out of.
    14 Apr, 01:10 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Apple's Board of Directors has encouraged management to pick up the pace of innovation and product releases. Think that directive will become very evident later this year.
    14 Apr, 01:17 PM Reply Like
  • Tri Duong
    , contributor
    Comments (1497) | Send Message
     
    Brae,

     

    I hope you know Google's whole businesses of providing free software, services and breakeven with hardware is to sell ads. They have no interest in making profit selling hardware. They have no interest in collecting money for software besides from businesses.

     

    You don't see the pattern? they make billions a year, I'm not sure I'm tracking how they are stagnant.

     

    Motorola was not a failure. The point of the purchase was for patents which they kept. After selling everything and taking Moto's cash, Google spent a total of $1.5B for almost all the patents.

     

    Nest is not a waste of money. When everyone can control everything in their house from their smartphone, then would you say it's a waste?

     

    Please put some thoughts in your post. Apple is doing well just like Google. No point in bashing.
    14 Apr, 01:59 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    Reading interviews with Motorola's former CEO, now CTO at (Drop) box, stated specifically that employees had 2-year contracts with Google.

     

    But the rapid discounting of the Moto X in the USA, suggests some lack of calculation on Google's part.

     

    And then, Google is retaining Motorola's advanced technologies and devices division and most patents.
    14 Apr, 02:06 PM Reply Like
  • littup
    , contributor
    Comments (409) | Send Message
     
    Matthew,

     

    that was like the worst comment ive read in weeks. Apple has ONLY three products that make 90% of all its profits.. Sorry we didnt you wanted Apple to launch a few burger joints and coffee and tea shops just to "diversify" its revenues.

     

    So microsoft has hundreds of other products eh? are microsoft's one hundred products 1% of revenue each?

     

    And no, we arent "trading" in APPLE. We are invested in Apple for a bunch of things you apparently cannot understand.

     

    1) TAM in the markets apple is active in is huge(and growing)
    2) Apple's ROI are H U G E. So risks are capped and upside is open.
    3) Already dominant in most of its businesses.
    4) CHEAP by any metric.
    5) If you need any more, you need to go back to basics.

     

    Oh yeah, and apple wont FAIL if one of the products it sells "fails" because it has no debt, huge cash and is basically the strongest tech company on the globe right now. On the other hand, Samsung can fail if it has a couple of bad years and a few hiccups.
    14 Apr, 02:15 PM Reply Like
  • chopchop0
    , contributor
    Comments (3526) | Send Message
     
    "why is apple the only tech company who gets punished for not bringing out a new product category on a yearly basis?"

     

    Because they profess to not being in the "commodity" business like everyone else, and you can literally count the number of products on one hand that contribute most of their revenue and profit?
    14 Apr, 02:30 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    smart

     

    Do not parse my words get the quote correct. "Microsoft and Google".
    14 Apr, 04:38 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Don't blame me for that comment, It was 'Smart' that made those statements
    14 Apr, 05:55 PM Reply Like
  • Hank890
    , contributor
    Comments (1159) | Send Message
     
    MS and Google are not getting meaningful revenue from hundreds of products; not even close.

     

    Google and advertising revenue are joined at the hip. There is no CF associated with most of the hyped stories Google plants in the press (cars, glasses, etc.) .

     

    MS has less than a dozen profitable businesses, ....mostly Office, Windows, Xbox, Azure, Enterprise....

     

    Apple has laptops, iTunes, pads, phones, and TV set-top boxes, predominately.
    14 Apr, 06:06 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    Hank

     

    Thanks for proving my point.
    14 Apr, 06:21 PM Reply Like
  • srenfer
    , contributor
    Comments (7) | Send Message
     
    The "smart phones" cited in countless references to market share is laughable. My 59 year old mother has a "smart phone" and it does nothing but snap a blurry picture and might connect to her gmail account if she stands in the right light. Can analysts please stop citing AAPL market share losses by including ASP phones of less than $400 because it skews the data.

     

    Furthermore, as much as carriers don't want to deal with AAPL, they all know they have no choice since iOS dominates the data usage not only in the US, but globally. They make a killing off of teenage data usage when they exceed their plan limits. Let's face it, the iOS user is typically a more intelligent, better educated, and generally more affluent user that is more valuable to capitalism in this country. All this leads to pent up demand for the 6 release. My only concern is their supply chain and AAPl's ability to fulfill orders in their crucial 3rd and 4th quarters.
    14 Apr, 11:22 AM Reply Like
  • jzivick
    , contributor
    Comments (92) | Send Message
     
    Anyone see the Verizon commercials offering the brand new Samsung Galaxy 5, buy one get one free? Sounds like an awesome new product introduction. And of course free DRIOD phones too. Brand new! Isn't that great news for their profit margins!
    14 Apr, 12:10 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Jzivick- Desperate measures for desperate products. Apple customers are not looking for the lowest price, they want the best phone and ecosystem for their needs. Apple's customer retention rate is amazing, by far the highest in their industry. Samsung and Droid users are much more price sensitive and fickle.
    14 Apr, 01:48 PM Reply Like
  • Randal James
    , contributor
    Comments (2799) | Send Message
     
    Braeburn,

     

    Samsung may be stronger than you think.

     

    "Move over, Apple -- there’s a new brand dominating loyalty in the world of consumer electronics.

     

    Samsung, which has scored well in previous years, is now the leader in most of the categories in which it competes (as measured by Brand Keys’ 2013 Consumer Loyalty Engagement Index). The Korean electronics giant comes out on top of the laptop computer (tied with Apple), flat-screen TV and smartphone categories, and was number two among home printers and tablets."

     

    http://bit.ly/1gx6NXI

     

    More from Forbes:

     

    http://onforb.es/1gx6YlI
    14 Apr, 01:55 PM Reply Like
  • George Orwelll
    , contributor
    Comments (27) | Send Message
     
    I thought a lot of the large screen phone sales are to consumers whose phone is their main device to watch movies and work the internet. In other words they do not have tablets, laptops, or desktop computers. I will be a little surprised if Apple's big screen phone sees a huge market as is being suggested.
    14 Apr, 12:26 PM Reply Like
  • M dub
    , contributor
    Comments (80) | Send Message
     
    I know my personal pent up demand is huge. He absolutely should not have waited to push this thing back for a better screen technology. This is why AAPL has the valuation it does, plain and simple it is a Tim Cook discount. Tim if you a reading this - next time this happens, get the competitive feature out rather than feed your ego. So here we are, practically mid 2014 - - in Christmas 2011 Samsung sold over a million Galaxy Notes, 10 million by August 2012. Two years ago. So then you push back the phablet so you can get the latest greatest screen. WTF? There is no wonder why you have to spend tens of millions on stock buybacks. Maybe you should try some red bull in the morning, because as both a shareholder and a "fanboy" you regular brain isn't cutting it. Get some balls man.
    14 Apr, 12:30 PM Reply Like
  • Randal James
    , contributor
    Comments (2799) | Send Message
     
    For those of you who snoozed through econ 101, demand is said to be relatively elastic. Use whatever everyday product you are familiar with and consider the effects of changes in price. Cigarettes, long considered essential by smokers in NY, are less so when a carton sets you back $100+. Top sirloin steak, a bargain at $4.00/lb is questionable at $8. Large screen TVs have been falling in price for years. As more people see that a large screen can be theirs for $300, they are no longer a point of interest in someone's house - everyone has one.

     

    Everyone has phones as well and generally the ASPs have been declining. More phone for less money. If the news for a price increase is true, the new features will have to overcome the reluctance of a decent slice of current customers willing to commit to an extra $100 out-of pocket.

     

    You may be thinking that the carriers will just bundle it so no one notices how much the phones really cost. Sadly, since T-Mobile's new cheaper plans have become a threat, the carriers all shrank their plans in cost so there isn't room to tuck an extra $100 in a 2 year contract. They might go with a 30 month contract but that has the effect of reducing the replacement sales by 25%. Yikes!

     

    And boy are those foreign markets going to love even higher priced phones!

     

    I have no idea when the sapphire screens may be a reality and I expect consumers might pony up their incremental cost to have a more durable glass. That's about $25, not an extra $75. This is a potential train wreck as sales stall, people hold onto older devices longer and then the resulting promotions leave an aura of desperation.

     

    But the demand component that has been happily keeping Apple rich will fall when prices increase. Consumers have plenty of less expensive options including "do nothing."
    14 Apr, 12:31 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    Randal,

     

    Excellent.
    14 Apr, 12:33 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    "are those foreign markets going to love even higher priced phones!"

     

    Why is there a Vertu (formerly Nokia luxury), actually a few Vertu shops at Hong Kong International Airport?

     

    Study-up on the history of luxury.

     

    At least in Asia the demand (Apple's revenue) will not decline!

     

    On Sunday, the church maintenance man proudly pulled out his 2nd-hand Apple 4s which he bought over half-a-year ago for 2k RMB.

     

    Most Americans don't get it!
    http://bit.ly/1t0RQWx
    14 Apr, 12:44 PM Reply Like
  • jzivick
    , contributor
    Comments (92) | Send Message
     
    Why do people keep buying those Louis Vuitton bags? Why do people pay premium prices for BMWs when Kias will get them from point A to point B? Why do people go out for steaks at Ruth's Chris instead of Sizzler? Does everyone do this? Of course not. But enough do to keep those brands in demand so their parent company can keep making a nice ROI. Should Apple compete in only the high-end demographic? Should Apple compete in every demographic? I think the answer is simply they should compete where they make the most money, not get the most market share. After all, companies are suppose to make lots of money and Apple seems to be doing that pretty well.
    14 Apr, 12:52 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    Apple iPhone is not a BMW or a Louis Vuitton bag. If that were the case, if were such a "status symbol" the iPhone would be going for $1500 subsidized. That's a ridiculous analogy.
    14 Apr, 12:57 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    "Why do people go out for steaks at Ruth's Chris instead of Sizzler? "

     

    Because Sizzler in San Francisco's Tenderloin closed 20 years ago and Ruth's Chris less than half a mile away is still there.
    14 Apr, 12:57 PM Reply Like
  • Randal James
    , contributor
    Comments (2799) | Send Message
     
    Samuel,

     

    There is a difference between wishful demand and actionable demand. The % of the population that would love to own a Tesla is probably large but the pricing makes it unactionable for most. iPhones are desirable in Asia but unaffordable for most. [Let's exclude the 2nd-hand market and counterfeits.]

     

    Stories of someone visiting Shanghai and "everyone" having an iPhone are _____ _____. [What you find left behind on an equestrian trail.]
    14 Apr, 01:08 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    "Apple iPhone is not a BMW or a Louis Vuitton bag. If that were the case, if were such a "status symbol" the iPhone would be going for $1500 subsidized. That's a ridiculous analogy."

     

    Those that have or bought the older models first will upgrade to the latest and greatest.

     

    But afterward, as in Hong Kong, the next phone might be a Galaxy.

     

    Again the Global Consumer Class is growing rapidly, sales of the IPhone will mimic that!
    14 Apr, 01:32 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Apple iPhone is not a BMW, but it's now IN BMW's. With Angela Ahrendts coming to Apple, and wearable tech all the rage, soon iPhone will be fashioned into Louis Vuitton Bags as well !
    14 Apr, 02:02 PM Reply Like
  • jzivick
    , contributor
    Comments (92) | Send Message
     
    Ahh, so people buy luxury goods based on geography. Makes sense.
    14 Apr, 02:11 PM Reply Like
  • jzivick
    , contributor
    Comments (92) | Send Message
     
    I never said "status" you did. Premium is the term. And exactly how did you come up with a subsidized price of $1500 for an iPhone? I think a class in marketing is in your future, or not.

     

    The Discipline of Market Leaders (M. Treacy and F. Wiersema, 1993) discusses how most successful firms fall into one of three categories:
    Operationally excellent firms, which maintain a strong competitive advantage by maintaining exceptional efficiency, thus enabling the firm to provide reliable service to the customer at a significantly lower cost than those of less well organized and well run competitors. The emphasis here is mostly on low cost, subject to reliable performance, and less value is put on customizing the offering for the specific customer. Wal-Mart is an example of this discipline. Elaborate logistical designs allow goods to be moved at the lowest cost, with extensive systems predicting when specific quantities of supplies will be needed.
    Customer intimate firms, which excel in serving the specific needs of the individual customer well. There is less emphasis on efficiency, which is sacrificed for providing more precisely what is wanted by the customer. Reliability is also stressed. Nordstrom’s and IBM are examples of this discipline.
    Technologically excellent firms, which produce the most advanced products currently available with the latest technology, constantly maintaining leadership in innovation. These firms, because they work with costly technology that need constant refinement, cannot be as efficient as the operationally excellent firms and often cannot adapt their products as well to the needs of the individual customer. Intel is an example of this discipline.
    14 Apr, 02:16 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Most Americans are bad at geography, lack interest and knowledge about foreign countries and don't travel outside of USA very much. So how are they going to know about the global prestige and demand for highly desirable Apple products? As an American, I urge all Americans to buy American.
    14 Apr, 02:28 PM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    " I urge all Americans to buy American."

     

    I did a TX- G-Moto X!
    14 Apr, 02:29 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    Wearables are not the rage, nor the future. Samsung proved that.
    14 Apr, 04:48 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    You made the implication of comparing an iPhone to a Louis Vuitton bag...which costs $1500.
    14 Apr, 04:49 PM Reply Like
  • shakazoid
    , contributor
    Comments (182) | Send Message
     
    Unfortunately most Apple fanboys would not like to acknowledge this. As usual smart Mutual funds sold and reduced their stake @ the peak when these indicators started propping up while retail investors jumped in @ the peak of news not to sell cos it was going to to $1000 . I always wonder why most of us (retail investors ) fall for this scam. We see an increase of all these analyst going on tv asking anyone not to sell yet we know a lot of it are being sold @ that particular time ,do we ever ask ourselves why those "stupid early investors are selling @ the peak so that we can buy it from them @ peak" . Are we so blinded by our greed that we keep falling for this scam over and over again?
    We never seem to learn and that is why Wall street keeps playing us and always winning. It was obvious a long while ago that carriers would stop and start reducing the burden of subsidy of phones especially iphones cos AAPL was making money every Q. The carriers are not stupid. Seeing AAPL doubling profit every Q while they barely survive in a "supposedly symbiotic relationship" was and still not smart biz. One of AAPL greatest strength is also her greatest weakness , "never wanting to share & help partners" unlike a MSFT. The reason why MSFT survived for so long was bcos it always supported & welcomed partners, APPL wants every bit for itself. That's the reason no one is playing with them when it comes to the so called iTV . Everyone needs a true friend & partner.
    I brought up a lot of points you pointed out 2day, @ the peak when the funds were always going on TV to ask no one to sell while they were liquidating / distributing . Have learnt to sell things I hold when every Tom,Dick & Harry is going TV asking not sell cos it should continue to go higher. Do we honestly/ believe they will tell us to buy from they while they are in liquidation mode?.
    14 Apr, 05:25 PM Reply Like
  • nooseah
    , contributor
    Comments (494) | Send Message
     
    Wow. An oasis of common-sense in a sea Apple cult victims. Well done, sir.

     

    It's sure gonna be painful for all those up to the yin-yang in Apple stock. They're still willing the stock up to $1,000! Just wait till the declines continue - the Apple chumps will be demanding a bailout from .gov.
    14 Apr, 05:34 PM Reply Like
  • Hank890
    , contributor
    Comments (1159) | Send Message
     
    Actually, appreciation of luxury markets is related to geography inside the US. In the upper Mid-West, for example, and also in many rural locations, value trumps luxury everytime with the majority of the population. But in the large coastal cities, premium brands trump value for a large proportion of the population who possess any casually disposable income. This is a cultural issue, formed in childhood.
    14 Apr, 05:54 PM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    Remember music players before the iPod and feature phones before the iPhone. Wearable tech will be big, ONCE Apple releases a wearable product.
    14 Apr, 06:07 PM Reply Like
  • jzivick
    , contributor
    Comments (92) | Send Message
     
    No. I made the point that a company choses what demographic to target its products to. LV, BMW, etc are not interested in producing products for the masses and they are doing just fine. Why would Apple want to compete on price? Talk about a fast track to continuously declining margins, and that is what has to happen when you compete on low price.
    15 Apr, 09:50 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    jzivick

     

    Volume makes up for it. Apple is trying to sell to everyone though, they are mass marketing, they don't put up ads of only rich people using iPhones. Remember the "I'm a Mac" hippie commercials? They want poor people to buy and force them to pay a premium for the devices, which has worked so far. Apple does make a nice product, but its not a premium brand, stop living in la-la land. Show me one example of premium status they have marketed regarding the iPhone, they never have.

     

    What you are describing isn't based in reality.
    15 Apr, 09:52 AM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (290) | Send Message
     
    @Matthew Davis,

     

    "They want poor people to buy and force them to pay a premium for the devices"... Nobody is "FORCING" anyone to buy an iPhone or any other product (other than the government forcing us to buy health insurance). It is ALL a choice... People WANT to buy Apple products, they are not forced to!
    15 Apr, 10:35 AM Reply Like
  • jzivick
    , contributor
    Comments (92) | Send Message
     
    Yes, if you want to be low-cost you can make large profits by also selling a large volume of products. But you can make the same profit by selling at a lower volume and a higher margin. There is more than one way to make money is my simple point. There are companies that choose the high profit/low volume approach.
    As for whether Apple is a premium brand, well that is in the eye of the beholder and you clearly do not see Apple in this light. I wonder what your definition of a premium brand is? Typically is it selling price relative to functionally equivalent products or services. The US market for cell phones distorts the real price of all products because of the subsidizing that the phone companies do. However, the average selling price of an iOS device in 2013 was $650 versus an Android device of $276 (http://bit.ly/1eQsMhr).
    18 Apr, 09:29 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    I understand your point but if you make your product, which you want millions to buy, you run this risk of alienating them through price gouging. Apple makes more profit because they inflate prices, for the time being, they can get away with it.
    18 Apr, 10:20 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    Apple does not inflate prices on all its products and services!
    18 Apr, 10:25 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    Of course they do! Why do you think their margins are so high?
    18 Apr, 10:29 AM Reply Like
  • Eric Gregg
    , contributor
    Comments (19) | Send Message
     
    One of the reasons for a potential price increase may be not just the size, but the potential that the display is sapphire. If that is indeed the case, the durability argument alone (and the fact that the costs would be significantly greater for a sapphire display) would warrant the increase.
    14 Apr, 01:14 PM Reply Like
  • Warren Buffet007
    , contributor
    Comments (955) | Send Message
     
    It is normal for Apple raise the prices, because the competitors has the same prices, but with very poor quality and very poor in customer care!.
    14 Apr, 01:24 PM Reply Like
  • ultraz2@aol.com
    , contributor
    Comments (569) | Send Message
     
    Less than 120 days till new Apple phones hit the market. Apple stock is going up.
    14 Apr, 02:16 PM Reply Like
  • chopchop0
    , contributor
    Comments (3526) | Send Message
     
    That's what they said last year. lol
    14 Apr, 02:31 PM Reply Like
  • nooseah
    , contributor
    Comments (494) | Send Message
     
    Hahahaha ha. What do you know that the market doesn't?

     

    Think about that one.
    14 Apr, 05:24 PM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    No one is talking about the iPhone 6.
    15 Apr, 12:30 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    Matthew:

     

    How can people talk about something that doesn't exist, unless it is speculation.

     

    Listening to "This American Life" false hearsay over the internet can bring about a successful liability suit.
    http://bit.ly/1qXzJgi
    15 Apr, 12:34 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    What are you talking about? There is no buzz for the upcoming phone. I don't hear it like it used to when the 3's and 4's were coming out. Now no one cares.
    15 Apr, 12:36 AM Reply Like
  • Braeburn
    , contributor
    Comments (1029) | Send Message
     
    You are! Bet you can't wait to get yours.
    15 Apr, 01:20 AM Reply Like
  • Randal James
    , contributor
    Comments (2799) | Send Message
     
    Matthew

     

    The other day I saw a mob of people waiting in line and asked what it was all about. Girl told me they were waiting for the new iPhone. I actually have a pretty great Nexus and the line was long so I just smiled and moved on.

     

    http://bit.ly/1gzjZPe
    15 Apr, 01:33 AM Reply Like
  • Matthew Davis
    , contributor
    Comments (3903) | Send Message
     
    I'm glad I clicked the link, lol
    15 Apr, 09:36 AM Reply Like
  • nooseah
    , contributor
    Comments (494) | Send Message
     
    Question is: will the 'victims' continue to queue up for every new iteration of the iPhone? Eventually even the most die-hard fan will grow cynical.
    14 Apr, 05:22 PM Reply Like
  • Hank890
    , contributor
    Comments (1159) | Send Message
     
    I replace mine every two years; same as my laptop, but in a staggered cycle.
    14 Apr, 05:41 PM Reply Like
  • Hank890
    , contributor
    Comments (1159) | Send Message
     
    In the US market, I doubt there is much of ANY pent-up demand for a much larger screen on the iPhone 6. The majority of 2014 new iPhone purchasers in the US already use ipads and laptops, both; they do not need or want a much big phone screen that renders the device too large to carry conveniently in most clothing pockets.

     

    Outside the US, especially in the developing world, the demand profile may be different.
    14 Apr, 05:39 PM Reply Like
  • MJ Badagliacco
    , contributor
    Comments (290) | Send Message
     
    I cannot wait to get my hands on a larger screen iPhone. 4.7" is the perfect size screen for me. iPhone users prefer the iOS experience over Android because of its intuitive nature. Plus the Apps are better built and feature rich.

     

    I see much about the fact that Android has just as many apps, blahblahblah... fact is that the Android apps work differently, they SUCK!

     

    I have used all the different OS's and Apple has the experience down, Android cannot touch the Apple experience. THAT is why people use Apple products, not because they have the "latest and greatest tech" crammed into them.

     

    iPhone users are loyal not because they are sheep, but because Apple understands that there is more to a device than the latest tech. They want to create an experience that is second to none. And like Audi, BMW, Mercedes, et al, there is an experience that comes along with them. Those who have never experienced it will never and can never know what that experience is unless they have sat behind the wheel. Same goes for using an iPhone, the flow is completely different than any other OS. Is it for everyone or is it perfect? NO... BUT, the overall experience is better than all the rest... IMHO
    15 Apr, 10:52 AM Reply Like
  • samuel_liu
    , contributor
    Comments (2799) | Send Message
     
    The one negativity of my Moto X is the 4.7" screen proved to be as difficult to type on vertically as my 3.5" IPOD touch.
    15 Apr, 11:11 AM Reply Like
  • mobyss
    , contributor
    Comments (2042) | Send Message
     
    Why is Apple offering a larger screen on the i6? Is it because the competition does?

     

    Who is leading and who is following in the smartphone development race? Wouldn't it be a better sign for Apple if the competition was moving toward smaller, more "Apple-like" screens?
    14 Apr, 06:33 PM Reply Like
  • jrhc
    , contributor
    Comments (436) | Send Message
     
    Large screen in Galaxies was to go after Apple IPads after all, in plastic. And cheaper. Development is a different animal: A7, sapphire screen, digital sensor, better applications.
    15 Apr, 01:56 AM Reply Like
  • Doc's Trading
    , contributor
    Comments (1351) | Send Message
     
    IMPORTANT.......AAPL..... All may have made a reversal today. Rule of thumb is lows must hold for 3-5 days on closing basis to be an intermediate bottom..If lows are breached earlier all bets are off....recommend long position here at 15-117 level with protective stop at 509.90.
    If lows are breached earlier all bets are off....
    more later.......
    15 Apr, 04:06 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (1351) | Send Message
     
    AAPL......that,s 515-517 long with stop at 509.90
    15 Apr, 04:08 PM Reply Like
  • Doc's Trading
    , contributor
    Comments (1351) | Send Message
     
    AAPL.... Raise sell stop to 525.90 from 509.90... this will assure a minimum gain of 10 points from where bought....
    more later.....
    17 Apr, 02:37 PM Reply Like
  • Christopher Dall
    , contributor
    Comments (18) | Send Message
     
    Am I the only one that thinks they're going to slap a solar panel on the back?

     

    http://seekingalpha.co...

     

    Norsk Hydro ASA owns the preferreds on Ascent Solar, a company that can put solar cells on plastic / flexible substrates. Norsk Hydro is relevant because they signed the contract in 2012 to make the frames for Apple products... Thoughts?
    9 May, 09:08 PM Reply Like
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