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  • Ultra Cheap Mobile Phones Will Upset The Industry Apple Cart [View article]
    India has 1.2 Billion people. The low end phones meet the functional needs of milk man, news paper delivery man, taxi drivers and so on. People at the high-end of the population that is about 200 Million will not be caught dead with the low-end phone. Similar logic can be applied in China, Indonesia and other countries with large population.

    Apple has plenty of market opportunities to differentiate and charge premium price. This constant noise about low-end products that Apple should be offering lacks basic understanding of the market, profit & loss modelling and product strategy.
    Aug 15 01:14 PM | 15 Likes Like |Link to Comment
  • A Long-Term Threat To Apple [View article]
    It is well established that consumers aspirations are similar. In every country as consumers increase their net worth they acquire better products. Apple is no different. As long as Apple continues to keep the market interest growth will follow. This article is much ado about nothing.
    Aug 13 04:08 PM | 6 Likes Like |Link to Comment
  • Why Tax Inversions Won't Go Away [View article]
    The real issue is that the political climate is poisoned for good. This administration has fanned the fire of class warfare there is no going back. With about 50% not paying federal tax; taxing the rich and taxing the corporation is a strong war cry for the democrats. GOP leadership is weak and inarticulate. Decisions based on politics will trump economic reality leading to slow and steady decline. I can only hope for something to break this trap.
    Aug 13 03:23 PM | 2 Likes Like |Link to Comment
  • Apple's R&D Continues To Fuel Future Growth [View article]
    "Apple is about style, pure and simple.", You can't be more wrong that this. Not that "Style" is not important. In consumer brand style is the most important aspect to make money. The other aspects are also built by Apple except for manufacturing. Apple has hundreds of Billions in their account to prove it. One thing I learnt is never to argue with real money in the bank.

    Amazon with Apple cloud are not in the same segment. Amazon cloud at this time is more for business computing. That market is hyper competitive. I wonder how they ever going to make money with Microsoft, IBM and Google competing with them.

    Amazon's, recent entry into consumer cloud will also have to face competition. Apple's iCloud already brings billions in real profit with hundreds of million registered consumers. With beats and money to make more acquisitions Apple is much better positioned than Amazon to offer more and more products in the consumer cloud space.

    Your take on Apple is not consistent with facts.
    Aug 13 01:53 PM | 2 Likes Like |Link to Comment
  • What Will Drive Future Growth For General Electric? [View article]
    I want to temper the African enthusiasm. I have heard the potential for Africa story all my life, unfortunately they have remained potential. I work in a segment that deals with Africa a bit. Except of South Africa and Kenya, rest of the Africa the progress is pretty much non existent. Mozambique is showing some progress due to recent find of natural gas. GE may get projects sponsored by UN, IMF, world bank and other sponsors, the self propelled growth within Africa is still a mirage.
    Aug 13 01:28 PM | 3 Likes Like |Link to Comment
  • Why Apple Won't Build A Cheap iPhone... And Why It Should [View article]
    Good post.
    Aug 12 03:57 PM | 1 Like Like |Link to Comment
  • Don't Be Fooled: IBM Still Reporting Low-Quality Earnings [View article]
    Investment in IBM is to be viewed over long time horizon. After the PC and internet product mix turnover, which IBM navigated very well, today IBM is in the process of navigating thru Cloud and Smart phone disruption. Additionally global recession has kept corporate and government spending low. IBM strategy to navigate cloud and smart phone disruption is good, and they are executing it well. Eventually corporate and government spending will come back. IBM's financial leverage of buying back stock by taking advantage of cheap loan will translate to higher earnings.

    Keep investing at these low price the reward will come. You can sleep well, don't have to be bothered by quarterly up & downs.
    Aug 6 02:59 PM | 2 Likes Like |Link to Comment
  • General Electric Sees Africa As Its New Frontier [View article]
    "Immelt is a Visionary", that is a joke. What do you expect African development bank to say? Immelt is nothing but Obama's minion. Not to say that is not important to keep GE alive these days.
    Aug 6 02:46 PM | Likes Like |Link to Comment
  • IBM: $250 A Share By End Of FY15 [View article]
    First of all most the debt is for their financing business. When money is cheap it is prudent to borrow and buy back share, particularly when the ROI margins are much higher than cost of debt.
    Aug 1 02:51 PM | 1 Like Like |Link to Comment
  • IBM: $250 A Share By End Of FY15 [View article]

    Why SaaS margin are lower than shrink wrap S/W? Look at sales force, NetSuite, and other SaaS companies. In fact the margins on SaaS will be better than shrink wrapped S/W. There is no distribution cost. You can package infrastructure and administration services into the price.
    Aug 1 02:50 PM | Likes Like |Link to Comment
  • iPad Cannibalization From iPhone 6 Sales Will Be Insignificant [View article]
    If there is a market that prefers a bigger screen smart phone instead of two devices then Apple is better off cannibalizing / substituting its product instead of some other company.
    Jul 30 12:35 PM | 2 Likes Like |Link to Comment
  • Apple's Xiaomi Problem [View article]
    Your point is not valid here. Last I checked Ford is doing well. GM and Chrysler are still around. Primary reason for the US auto industry is in less competitive condition today is because of union, EPA and labor laws. Not because of the companies ability to innovate and develop products that consumer want. Certainly labor intensive industry gives a huge competitive advantage for companies that are located in low wage countries. Even auto industry which has significant labor component has been resilient because of good amount of technology component.

    Apple is different. Last I checked there is no significant computer, networking or chip companies outside of US. Apple is a technology and innovation company. They already use China to manufacture their products so the labor advantage is nullified. Apple has been in PC market with substantial margin even though their market share is small. Where are the other PC makers? As long as the product is great and continues to evolve to offer great features Apple and their investors will take boat load of money to bank.

    Today's massive low-end consumers are tomorrow's Apple high-end customers. Catching.
    Jul 30 01:04 AM | 4 Likes Like |Link to Comment
  • The Coming Cloud Crash [View article]
    The author has lumped At & T, Verizon, IBM, Amazon and Google into one group. While they may have some overlap, their business models are very different and they serve different markets. Few companies like RAX maybe at risk but broadly I disagree with the author's analysis.

    The demand for cloud is growing in all areas. The pricing pressure that you are alluding is very manageable for the companies like AMZN, GOOG and MSFT. They are pricing to make sure no new entrant enter. At the end of the day these three companies address the so called container market and will have dominant position. The reason their utilization rate is low is because the demand for their services is soaring that they need to keep the capacity high to accommodate rapid demand.

    IBM, ORCL, MSFT and few others are basically shifting their offering to private cloud. The market for private cloud is just starting.

    Overall cloud market is just starting.
    Jul 29 09:01 PM | Likes Like |Link to Comment
  • Apple's Mobile Profitability: The Illusion Of Advantage [View article]
    You can't ignore AAPL huge cash distribution in terms of dividends and Buyback. If you look at cash generation per share AAPL trounces GOOG. I think this measure is more appropriate to compare for investing purposes.
    Jul 28 02:46 PM | 2 Likes Like |Link to Comment
  • Why The IBM-Apple Agreement Could Fail [View article]
    The customer better have a large budget to support multiple devices.
    Jul 22 03:22 PM | Likes Like |Link to Comment