Bastion

Apple: Like Starbucks and Whole Foods, A Trend That's Past Its Prime

Yeah - seriously lame article - total blog troll.

Hmmm, almost too bored to counterpoint...

Commodities still have quality grades (i.e. coffee and potatoes), but computers and mobile communicators designed for use and aesthetic are not commodities, and have more than just quality grades, but distinguishable functional differences (e.g. is there any functional difference between Starbucks and McDonalds coffees? No.)

Apple pricing is based more on margin and what the market will bear, not based on pushing large quantities. And in any case, their products are simply NOT whole-number multiples of the prices for "similar" products. The price myth is just that: myth.

The "early" competitive edge that he gives Apple with iTunes, he seems to think that other providers have come up with something comparable. Perhaps *several* providers in total can match the features of iTunes, but there is still no integrated service that cares for the customer experience as iTunes does.

And that applies to the App Store in huge multiples! Throw in the customer experience you get at an Apple retail store (where are those Blackberry stores and knowledgeable representatives?), and there simply is no comparison.

But here is his gem: "It does mean the glory days for the stock are over, unless they can tap back into the mass market that has left them."

Okay, you try to lump Apple with the performance of Starbucks and Whole Foods, but this is complete lunacy! For one, the mass market has NOT left Apple - they have been gaining market share in every category - and just had a record quarter, yeah, during the most dismal holiday season in a very, very long time.

Will this level of performance continue? Maybe not. Sure, lots of people will be tightening their budgets, whether they are still employed or not. But Apple is in a cash-rich position, which means that they can continue to invest and innovate during this recession/depression while their competitors will be cutting back. And that means that even if Apple is flat for the duration, they will be HUGE positive when we get to the backside of this recession.

A really sad, sad article. I hope your mother is proud of you.