chartguy

Intel's Atom Chip To Power Future iPhone

PS Semi is a virtual fab... it designs chips but doesn't build them. Somebody still needs to make the chip.

'Best of Breed' Business Model a Chink in Apple’s Armor?

Tempered responses, but all AAPL fanboys just the same. Unfortunately, I am in the same category. I started with an iMac for home. Then another for the kids because they were constantly on my computer.

I am forced to run Windows to access my business. Once I realized how easy it is to run OSX and Windows - simultaneously - it was easy to replace my old laptop with a MacBookPro. It's a little odd at first seeing Mac and Windows icons coexisting on the same desktop, but the operation is seamless. Once your brain gets used to the new layout and functionality it is hard not to increase your productivity.

Am I insane? Perhaps. But it gets better. When I decided to upgrade from Tiger to Leopard - different versions of OSX like going from XP to Vista for Windows people - I didn't have to buy a new computer. I just installed the software. I didn't have to hunt down drivers for my peripherals, either. Everything worked.

The Macs might have been more expensive at the outset if I only purchased on specs. But I would have missed the increased productivity and loss of frustration over constant error messages. More importantly, I likely would have been buying new computers if I decided to go with Vista. Instead, I know that my computers won't be obsolete in 2 years. That's something that I appreciate at home and for my business.

To wrap it up, I have to agree with Roger. Encourage your competitors to use Windows. If they see you with a Mac just say it was a gift or something and that you really only run Windows on it.

The Hidden Financial Impact of Apple's iPhone

Nice analysis, Andy. You covered some pretty complex material as well as anything I have read so far. FWIW, I agree with both Tommo and Ken, first regarding the channel inventory requirements for 3Q08 (that's FY4Q08 for AAPL) and also regarding the primary revenue impulse that will be recognized in CY3Q09 but especially the secondary impulse that will arrive in CY3Q10 as 8 full quarters of iPhone 2.0 sales hit the Income Statement.

As an aside, I hope you are right about the $400 ASP. I know you and Bullish Cross have historically been pretty accurate in modeling AAPLs revenue, however it appears that the company is focused very intently on gaining market share. AAPL can not yet predict the impact of Android, so seeding the market with as many iPhones as quickly as possible makes sense. To accomplish this goal, AAPL first adjusted the price of the original iPhone last fall and has now announced a significant reduction for iPhone 2.0 -- although carrier fees will largely offset the total cost of ownership.

Lastly, you have rightly ignored Apple TV. Although this product has the potential for massive market acceptance, I don't think that will happen with the current hardware configuration. My ideal product would add cable box functionality, digital recording, and 1080i support.

To wrap it up, I've changed my visual model of AAPLs business. Where I thought there was a 3-legged stool comprised of Macs, iPods and iPhones I now see something that consists of (i) traditional computers including Macs and a future tablet; (ii) handheld devices such as iPod/iPhone; (iii) home services such as Apple TV; (iv) enterprise products including servers; and (v) retail and support services including iTunes, the App Store, mobile.me and AppleCare with cloud computing at some point in the future. I don't know if this is a chair, a garden or what... but I'm reasonably confident it will generate a much higher EPS that the current product mix.

Not Buying It: Sanford Analyst Toni Sacconaghi's iPhone Hit Job

Nice write-up, Zach. All I can say about the "survey" is that I question the results of anything purporting to represent opinion about a device that has not yet sold, or even shipped, one unit.

When people become aware of all the iPhone can do it seems reasonable that the "survey" results will be different. Just wait until the CEO of one company starts talking with the CEO of another company about the custom apps they are running to increase sales yield, increase inventory turns or track employee productivity in the field via GPS.

A closed mind is a dangerous thing...

SanDisk: Flash Sales 'Soft' in April at Retail

Why is it so difficult to understand that price pressures for SNDK translate to better margins for company's purchasing flash memory? In fact, prices have fallen so precipitously that companies like AAPL can increase unit purchases by 50% and still expect to pay less than in 2007. I don't expect SNDK to realize any significant appreciation until consumption of flash memory increases through broader adoption in phones and computers. Said differently, I am very reluctant to use SNDK as a proxy to determine AAPLs prospects for 2008 as it appears that AAPL is on track to exceed expectations with its flash based products (iPhone, iTouch, MBA). Too bad for SNDK that AAPL alone can't rescue it.

For Microsoft, Apple Is the Elephant in the OS Room

When do we get to see MSFT start rolling out enterprise software for OSX? What's the tipping point in terms of AAPL penetration of the enterprise market?

My smallish (60 employees) company is wed to Wintel because of the software apps. Several senior managers and half the sales force are using Macs and emulating XP only to communicate with the server or to run some data analysis/graphing software. Office is run in the native OSX environment. The office staff all use Dell products.

Also, given the mobile nature of our sales force -- roughly half the employees -- the iPhone would be a natural fit. We already run a mobile platform to access our inventory and provide real-time order entry. Blackberries are the preferred device at this point, but we spent some time brainstorming ideas to exploit the iPhone's ability to run new applications. The biggest hiccup seems to be linking into our SQL database because we use Dynamics on the front end.

We may be forced to use Vista at some point in the future, just like we were forced to abandon Server 2000 when it was perfectly functional, but we're hoping there will be enough corporate pressure to continue support for XP past the June cut-off. Upgrading to Vista would be a large enough expense to warrant a full evaluation of our IT needs. Also, we do not have a dedicated IT person in-house. KISS... please.

Apple Confirms iPhones Targets, But Will Defer Some Hardware Numbers

Tan, your rant was eloquent, insightful and accurate IMO. Thanks!