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While Facebook underwhelms on its big day, Apple (AAPL +1.4%) is outperforming after a string of...

While Facebook underwhelms on its big day, Apple (AAPL +1.4%) is outperforming after a string of selloffs. Possibly helping is a bullish note from Morgan Stanley's Katy Huberty (previous), who predicts average U.S. household spending on Apple gear will go from $444 in 2011 to $635 in 2013, and reach $888 (!) in 2015, provided rumors (I, II, III) of an iTV pan out. Meanwhile, BMO says its talks with carriers suggest they want to cut iPhone subsidies, but that actually doing so could prove tough.
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Comments (28)
  • TWagen
    , contributor
    Comments (143) | Send Message
     
    Those are insane averages. so a typical APPLE household is spending 1K or more per year (To compensate for all of the non Apple spending households).

     

    I do not believe it.
    18 May 2012, 12:18 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    Believe it. After using Wintel always and everywhere, I'm now iPhone and iPad for everything.

     

    Apple, T and/or VZ. That's all I need. Makes life much easier.

     

    For the 1st time in almost 20 years, no Mr Softee Office licenses.
    And, likely no more Wintel desktops after the existing set "expire".

     

    TCO and no hassle factor (remember Vista and XP) more than compensate for the few extra bucks for the devices. The new iPad is killer.

     

    To "not have to worry about it" is worth a ton! One company handling all my devices AND the hardware, OS and apps. All my glass from Apple hooked to the net. Nice. What a relief.

     

    Great sense of community also around the Apple eco-sphere.
    20 May 2012, 08:44 PM Reply Like
  • mcclux
    , contributor
    Comments (44) | Send Message
     
    Why is that hard to believe? It's the cost of an iPad, iPhone or laptop. Lots of APPL households would have at least one if not 2 of those devices, plus an AppleTV ($99) + spending on movies and apps through iTunes.
    18 May 2012, 12:23 PM Reply Like
  • mnicoletti
    , contributor
    Comments (57) | Send Message
     
    I agree with Mcclux.

     

    As a result of the consistent quality of their products, most people who purchase one Apple product (even those who once swore to never make the switch from the PC world, including myself), usually purchase more. In fact, I've been so pleased with their products that last year I said goodbye to MSFT based computing (other than running WinXP on VMware) and am now the proud owner of an iPhone, two iPads (although one is my daughters), a Macbook Pro and Thunderport monitor, and an AppleTV (and will be purchasing a second AppleTV for the bedroom in the next week or so).
    18 May 2012, 12:35 PM Reply Like
  • betonthehouse
    , contributor
    Comments (3) | Send Message
     
    ditto: I got an iPhone first and since then 2 iPads, 2 iPods (kids), another iPhone (wife) and a mac mini. Not giving up my wintel boxes/laptops; just expanding.
    18 May 2012, 03:44 PM Reply Like
  • mnicoletti
    , contributor
    Comments (57) | Send Message
     
    How funny! I forgot to mention that I also have a Mac Mini Server running my law practice.
    18 May 2012, 07:34 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    Cost -- hell no. I make money using the devices. They don't "cost" me money.
    20 May 2012, 09:04 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    Coletti,

     

    Same here! Microsoft is a great company, but I worried everytime I booted up a PC for the last 20 years.
    20 May 2012, 09:05 PM Reply Like
  • bimmerguy09
    , contributor
    Comments (61) | Send Message
     
    I think part of the issue is that this implies more households will adopt Apple products. There's still room for growth in America, much less overseas and in developing markets in particular. Given that "Apple gear" also includes $3k Mac Pros, it's not hard to imagine that some households would spend over $1k each year on Apple stuff. They may not all spend $1k every year, but every one of them are somewhere in the product replacement cycle, and eventually they will be that household that spends $1k in a year. It doesn't have to be the same households every year...
    18 May 2012, 12:28 PM Reply Like
  • berylrb
    , contributor
    Comments (2232) | Send Message
     
    Good points, I would just add that it would be unbelievable if ones view of Apple is limited to just one product - iPhone.
    18 May 2012, 12:32 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    hey Beryl

     

    how are you?
    20 May 2012, 08:51 PM Reply Like
  • jasaggie
    , contributor
    Comments (49) | Send Message
     
    music, books, iPhones, iPads, Apple TV, MacBook/Air, Cloud, Match, Accessories, Software, Apps, and maybe even an iPod...it's a no brainer. And if the iTV happens, that's another chunk. I'm surprised it is that low to be honest! Oh yeah, and I forgot just good old Macs.
    18 May 2012, 01:49 PM Reply Like
  • johnofarizonaoregon
    , contributor
    Comments (279) | Send Message
     
    The TV manufacturers are already fearing the rumored Apple television. One example: a local Costco store is carrying a newly introduced "Smart television" and there is a salesman from the company in Costo, approaching customers as they walk by the display. When I walked by, he approached me with an invitation to learn about the Smart TV but when I cheerily replied, "I'm waiting for the Apple television," he didn't look surprised at all, and also didn't venture another word about the Smart TV on display. I felt kinda sorry for him because it seemed obvious he knew that the product he was employed to push is a rushed-together product which will look shabby next to any upcoming Apple television's thoughtful overall design.
    18 May 2012, 02:00 PM Reply Like
  • Windsun33
    , contributor
    Comments (4280) | Send Message
     
    I don't know about the "fear" part. TV technology is moving fast, and Apples' entry may end up being underwhelming in that market.

     

    Three years ago I bought a new 42" "mostly dumb" TV, and paid around $2,000 for it. Yesterday I stopped by Sam's Club, and I see new "pretty smart" 55" TV's selling for less, after only 3 years. I think the entry level competition will be much higher in the TV sector for Apple than in the iPod/iPhone market.

     

    One holdup I see right now for "Apple TV" ( the channel) is the same one holding Vudu and Amazon and others back - the lack of higher speed connections. Only a very small percentage of US households has enough bandwidth to handle HD or HDX. Until FIOS finally gets to more than a very small percentage of the consumers, I think this will be a very crowded arena.

     

    I have researched it a bit, and I actually see very little that is new that Apple could bring to that sector, aside from the cute little logo.
    20 May 2012, 10:12 AM Reply Like
  • BigJ1260
    , contributor
    Comments (206) | Send Message
     
    This whole "sudden idea" that all the carriers each decided to consider/discuss cutting iPhone subsidies and also as a group cutting back on upgrades - completely smacks of collusion.

     

    Why doesn't the DOJ look into this instead of Apple competing on eBooks with Amazon ??

     

    If one carrier tried they would immediatelly lose almost 50% of their business
    18 May 2012, 03:33 PM Reply Like
  • mnicoletti
    , contributor
    Comments (57) | Send Message
     
    DOJ doesn't look into rumors of things that might happen. But you are correct that VZ and AT&T would need to collude in violation of anti-trust laws or risk mass exodus of subscribers. And i can't see Sprint joining them because they just started offering $100 bonus to anyone trading in an old iPhone for for a subsidized iPhone 4S and will gladly take any subscribers who AT&T or VZ won't subsidize.
    19 May 2012, 01:39 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    There was a day when you had to have a slide rule, then a calculator, then a fax, then a cell phone, then a PC, then a smart-phone, and now a smart-tablet

     

    What are you gonna buy?

     

    Check the developer and publishing community. iPad is the next wave.
    20 May 2012, 08:55 PM Reply Like
  • OleBO
    , contributor
    Comments (10) | Send Message
     
    I actually CAN believe it. In our household of 9 (includes 2 kids 4 & 7 + 2 teens + 1 college age + 4 adults) , 4 ipads and 6 i phone 4s' were purchased last year alone. Only I bought a Motorola Photon, which works great but I am not in the Apple ecosystem and always out of the loop as a result. After observing this phenomenon of Apple cultist-like joy, I invested heavily in AAPL and have made a bundle. I will soon buy the Apple iphone 5 and the ipad. Anyone interested in a nice Photon?
    18 May 2012, 03:50 PM Reply Like
  • mnicoletti
    , contributor
    Comments (57) | Send Message
     
    If you paint it silver, the Photon will make a nice paperweight for your desk.
    19 May 2012, 01:42 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    Yup -- that's one of the feedback loops. You can't be out of the loop. TCO is a killer.
    20 May 2012, 08:56 PM Reply Like
  • OleBO
    , contributor
    Comments (10) | Send Message
     
    OH yes, one more thing........We also bought an Apple TV @ $99 and everone loves it to watch Netflix through it.
    18 May 2012, 03:50 PM Reply Like
  • what do I know
    , contributor
    Comments (1049) | Send Message
     
    I'd buy 12 ipads if that would Apple back on its track upwards!
    18 May 2012, 04:50 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1166) | Send Message
     
    +1, but AAPL really isn't off track. It traded at $366 at Thanksgiving. A sell-off was somewhat predictable. Stocks simply don't shoot straight up w/o corrections and interruptions. There's a lot of gap up that AAPL had to fill and much profit taking. If it goes under $500, its multiples ex-cash would be absurdly low and the price wouldn't be sustainable that low. Apple regularly bounces around in a 10-12-15% range and the sell-off thus far has been within those parameters. The reversal when Apple hit a market cap of $600B was somewhat suspicious. It did an about face, almost as if institutions noted that the stock was overheated or the income fund managers started shouting that they're not in yet, the price is getting too high. Of course I have no idea what I'm talking. Every quarter it seems to be the same drill. The price starts moving down and everyone starts writing an obituary, then the stock starts taking off again.
    19 May 2012, 02:30 PM Reply Like
  • dab3z
    , contributor
    Comments (312) | Send Message
     
    In the last year I bought an iPad ($700), iPod classic ($250) and iPod shuffle ($50). There's your $1000. Plus a couple hundred bucks on iTunes/App Store purchases.

     

    Growth potential is still unbelievable. Especially overseas. It's only a matter of time before we start the ride up again.
    18 May 2012, 06:29 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    iPad with a Zagg case and integrated keyboard, and a stylus. Productivity machine.
    20 May 2012, 08:58 PM Reply Like
  • bailinnumberguy
    , contributor
    Comments (1166) | Send Message
     
    I have an iMac, 2 iPads, an iPhone, a nano, an iPod classic and a smaller iPod. My next computer purchase will be a MacBook. I probably purchase 2 apps a month, a book, an album or 2 and assorted other junk. I'm a dream Apple customer and many of my friends do pretty much the same.
    19 May 2012, 02:30 PM Reply Like
  • IncomeYield
    , contributor
    Comments (2346) | Send Message
     
    Another feedback loop. The more devices, the more apps. The more apps, the more devices.

     

    Smart-phone and smart-tablet from the SAME company (and it happens to be Apple) is key though. Lowers TCO and headaches by orders of magnitude.
    20 May 2012, 09:01 PM Reply Like
  • fsatt
    , contributor
    Comment (1) | Send Message
     
    I started out with an Apple IIe in 1981 and have had Apples ever since. Apple stock has paid for my computers, iPhones, iPads etc many times over. I sometimes lose patience with Apple's relentless push to get me to change and do things their way - however, bottom line, I do put up with it and still look for the next innovation.
    20 May 2012, 11:07 PM Reply Like
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