Seeking Alpha

Applocrat

Applocrat
Send Message
View as an RSS Feed
View Applocrat's Comments BY TICKER:
Latest  |  Highest rated
  • Analysis Of Apple's Gross Margin Through The Past 4 iPhone Product Cycles [View article]
    here again "the evidence that Samsung is forcing down the price of the iphone" would be much more easily detected by looking at the price of the iphone... Margins are affected by all product lines, capex, warranties etc.
    Aug 21 10:56 AM | Likes Like |Link to Comment
  • Analysis Of Apple's Gross Margin Through The Past 4 iPhone Product Cycles [View article]
    True chuck but to the point above, we can detect pricing pressure in the other details as well: devices sold ASP, etc. Also if they have been forced to change pricing. I don't think a focus on GM gives us any uniquely valuable information. Your thoughts?
    Aug 21 10:54 AM | Likes Like |Link to Comment
  • Analysis Of Apple's Gross Margin Through The Past 4 iPhone Product Cycles [View article]
    Any guess on how saphire might affect this metric? It is more durable after all. Great piece of information by the way :+) Always enjoy your reasonable and thorough-going approach!
    Aug 21 10:50 AM | Likes Like |Link to Comment
  • Apple: A Reversal Of Fortune Seems Inevitable [View article]
    The principal pragmatic reason to care about marketshare is that, naively, marketshare ensures developer support. and it is the health and variety of the software offerings that keep a hardware platform viable and useful.

    so Michael Blair has to believe that eventually developers will abandon Apple, but why would they do this? Apple has hundreds of millions of users that spend much more money on their platform that users of android etc. so developing for iOS pays better. not only that, but Apple users tend to upgrade their software en masse, and therefore they tend to be using a current or compatible version of the software. this makes life much easier for a software developer.

    furthermore, there is the sheer enormity of the scale of the ecosystems. iOS maybe smaller than android but it has several hundred million users and is on a trajectory directory towards a billion.

    The idea that a developer could ignore a market of 1 billion users and probably the most lucrative users is just absurd. sure, they might be outnumbered by several other billion people but it still too large to ignore. by Michael's logic, India,China 0,the United States or any country on earth ought to be worried about no longer having product developed for them since they don't have enough marketshare of the human race! Point being, there's a certain point at which a system is big enough to sustain network effects. iOS is big enough.

    The fuss he makes about selling prices is just as meaningless. iPhone created a market. that market has matured and developed several price tiers. as is the case with any market not all vendors participate in all price bands. as is the case with antimarket the lower-priced brands comprise most of the population.

    Let's be as clear as possible for Michael sake: in order for the market to be commoditized, you would have to see not just the emergence of low-priced products. The upper tier products from all market participants would have to become cheaper this manifestly is not happening.

    top of the line device from Samsung or HTC or Apple etc. occupy the same pricing niche. The pricing tiers are actually stabilizing. if you look at the average selling price of the iPhone it has been remarkably stable over the products seven-year lifespan. with new uses for the device being constantly added I don't really see any pressure on this model

    I think Michael misunderstand the nature of a luxury brand. luxury brands don't fear parity. BMW welcomes the fact that Hondas cars are just as good. this may sound counterintuitive but once a luxury brand is established and entrenched product parity actually helps the book the luxury brand retailer. because if I can count on my widget being as good as your widget and people are already accustomed to pay more for mine, then I know that yours won't become better than mine and I won't have to spend that many resources making sure mine is better than yours. so in the case of product equilibrium, price bands maintain themselves indefinitely.

    this brings us to I think the deepest elements of the argument. The Bears dogged believe that tech devices simply cannot maintain luxury pricing. This belief comes from an era when technology was a purely masculine hunk of metal that work behind-the-scenes to make our lives little easier.

    but Apple created technology with personality. they created technology that helps us run every part of our lives. from our businesses to our casual get-togethers to romance and dating. we read on them;we watch videos;we listen to music. These things are the most personal and pervasive gadgets ever known to man. if luxury had not existed in the human psyche or the world before 2007, The smartphone could've invented it. simply because the smartphone was able to so deeply penetrate our lives and our egos. you could bet against premium pricing in the sector. but you are betting against human vanity.

    I don't see much money being made that way.
    Aug 9 12:06 PM | 3 Likes Like |Link to Comment
  • Will Android Benefit From Samsung's Woes? [View article]
    there is no such thing as Android. You can call all auto manufacturers less Volvo "Wolvo" they can even decide to use the name when it suits them. Wolvo won't exist until actual cooperation and consolidation takes place.
    Aug 4 09:24 PM | Likes Like |Link to Comment
  • Please Be Cautious, Apple Bulls [View article]
    I saw a commenter above claim that Apple was behind the "innovation" curve. Without going on too much of a rant about how desperately overused that word is let's remember people Samsung et al took the same screen and made it BIGGER. Making something bigger is the easiest thing in engineering. It gives you more space for everything. Leaving that to one side, do we really live in a world where creativity consists in changing something's size? If that's true, who here hasn't done some really innovative laundry from time to time?? :-) Best to all
    Aug 2 11:05 AM | 2 Likes Like |Link to Comment
  • Apple updates MacBook Pros, cuts prices [View news story]
    why is that every other company cuts prices because of their market savvy and aggressive business style, but Apple does it out of desperation?. Microsoft fired thousands and it got positive billing! Yes I know many were from Nokia, but let's face it growing businesses hire.
    Jul 29 12:28 PM | 3 Likes Like |Link to Comment
  • Apple's Mac Is En Route To Dominance [View article]
    and frankly given how longs macs last the total cost of ownership is likely lower. Especially when you take factors like worry and stress into account. I don't worry about my Mac crashing etc.
    Jul 29 12:03 PM | 4 Likes Like |Link to Comment
  • Apple's Mac Is En Route To Dominance [View article]
    Exactly.
    Jul 29 11:58 AM | 1 Like Like |Link to Comment
  • Apple updates MacBook Pros, cuts prices [View news story]
    It could be the surface or it could be the new joint venture with IBM.
    Jul 29 11:49 AM | Likes Like |Link to Comment
  • Apple's Mac Is En Route To Dominance [View article]
    Do you want to lean forward stretch out your arm and fondle your computer all day? it doesn't seem to me the touch is the right user interface for the PC.

    voice baby or the Brain interface someday soon
    Jul 29 11:44 AM | 6 Likes Like |Link to Comment
  • Apple's 'Healthbook': Exactly What The Doctor Ordered, Especially For Women Like Me [View article]
    Wonderful blending of personal history and sound reasoning. What do you think of the potential downside of having TOO much health data? Just playing Devils advocate!
    Jul 29 11:33 AM | 2 Likes Like |Link to Comment
  • Apple's Mobile Profitability: The Illusion Of Advantage [View article]
    good points.
    Jul 28 05:19 PM | Likes Like |Link to Comment
  • Apple's Mobile Profitability: The Illusion Of Advantage [View article]
    NO...
    Jul 28 04:22 PM | Likes Like |Link to Comment
  • Apple's Mobile Profitability: The Illusion Of Advantage [View article]
    I really like this my only complaint being I totally wanted to use the "advantage of an illusion" bon mot, but you got there first
    Jul 28 04:20 PM | Likes Like |Link to Comment
COMMENTS STATS
757 Comments
1,020 Likes