pats

Why I Would Not Bet on iPhone over Android

If you want to read a well thought out piece on the Apple vs Google battle. I suggest counternotions.com/200.../. He has some of the best, thought provoking ideas which will help you analyze what the different companies bring to the table

Why I Would Not Bet on iPhone over Android

There is so much lack of facts in this article that it makes any conclusions suspect. When you overgeneralize markets making statements like your average selling price vs Mac price you miss the fact that Apple does not compete in the lower half of the market and so will have a higher average selling price. You need to take a class in logic fallacies. Your article is filled with them and lacks in so many areas that your conclusion is not supported in your reasoning. I give you one example: You say "I'd argue however, that the smartphone experience is rapidly becoming mass market " The mass market is the group of consumers who occupy the overwhelming mass of a bell curve for common products. If we look at smart phones according to Gartner smart phones occupy about 11% of the cellphone market. Hardly the middle of the bell curve. You make a statement like it is fact "A PC with even the exact same components sells for far less than the same components with the Apple moniker". Which is false and then use the false statement to make your case.

10 Reasons Not to Buy Apple

Hao Jin
If I follow your wisdom who should I invest in? Point 1. The fact that a market is competitive doesn't mean there are not winners and losers. # 2 If you can read a financial statement. Go to Apple's investor web site and calculate the actual margin on the Iphone using the data provided by Apple. If you can't do a basic calculation like that you don't deserve to publish your article on a financial web site. The margin on the Iphone is about 55%. #3 is so what. They were new to the business and did exclusive deals for a few years with a number of carriers. Did this slow sales for the first couple years probably, but they are quite capable of adding these other carriers in the future so I don't get your point. The exclusive deals allowed them to bring a new device to market with great margins provided by the carrier subsidy.

#4 Gartner projects the smart phone market to grow 26% in 2009 which is the segment the Iphone would be included in. I think you should look at the correct statistics. How fast did the Iphone grow YOY or model over model. If you run those numbers then your picture might look different. Don't forget your deferred revenue accounting which means Apple is still recognizing revenue for every single Iphone sold and only this qtr will have two years of sale.
#5 Can you tell me how many handhelds Nitendo or Sony sold in the gaming market? Because until the App store opened Apple sold zero Itouches for gaming, but today they probably capture some of the handheld gaming market a new growth area, and what if this year they add a camera/video capability to the touch or a gps will they capture any of the dedicated point and shoot camera sales or PND sales.

#6 I love your statistics and your short term view of the world. If you expand your horizons past the current recession Apple's MAC growth has been phenomenal but it would ruin the story. By the way how has the rest of the PC world been doing this year? I guess it will never recover and Apple will never grow again.
#7
Will not argue that the Apple store was a huge investment, but have you ever compared the revenue per square foot of retail space to any other retailer in any market? You might find that Apple has the most profitable retail operation bar none in any business. Do the research and then tell me Apple made a mistake building their own stores
#8
Is a joke. Steve was on medical leave and he is doing great along with the company. As a great leader he has a strong bench and some are more then capable of filling his shoes

#9
Where did you read about Apple's future strategy. Do you have a published white paper or something because I follow Apple daily and I have never seen a published strategy but as far as execution they seem to be doing well

#10
The SEC investigation was terminated and pretty much any large company battles litigation on a continuous basis.

Good luck with your investments because with this kind of analysis you are not ready to invest in individual stocks. The QQQQ are probably a wise bet for you because you can't figure out good well run companies with great growth potential.

Does Palm's Pre Have Anything on the iPhone or Storm?

On May 12 11:41 AM Aryamehr wrote:

> Palm's choice of Sprint was brilliant, in that Sprint is the only,
> and will be the only, carrier for the next two years to have 4G capabilities,
> hence enhancing the Pre's speed by a factor of at least 10 over the
> iPhone and Blackberry phones. Other than having a more efficient
> User Interface and more versatility the Pre will be operating on
> a super fast highway that ATT won't have available until 2011, that
> is if they follow through with their 4G plans in a timely manner.
> Now give me some Spin about the iPhone 4G? ATT again doesn't have
> 4G, so no matter what Apple does they will be limited to 2.5G to
> 3G for at least two more years. During this time Palm will be testing
> a better versions of its WebOS on a fully functioning Sprint 4G network,
> giving its developers a clear advantage. Now beat that!

The Pre does not support 4G so how does this help Palm. ATT is upgrading their existing 3G network via software from 3.6 to 7.2 . The Sprint EVDO rev A operates at 3.1 Mbps. So If you buy a new IPhone which will come out about the same time as the Pre your network theoretically will be twice as fast on the Iphone as the Pre. Realize that peak rates and actual device speeds vary by time and location, but the bottom line is the Pre on Sprint's network will be slower then the next Iphone on ATT network.