Seeking Alpha

NealC

NealC
Send Message
View as an RSS Feed
View NealC's Comments BY TICKER:
Latest  |  Highest rated
  • Apple's Impressive Dividend Growth Potential [View article]
    I never understood why people are so happy to say that Apple is "going down". This is a company that employs 100's of thousands of people all over the world, and makes things that a lot of people like. I never hear people say "GM makes crappy cars...they're going down...yay!"
    Sep 15 07:09 PM | 7 Likes Like |Link to Comment
  • iPad: Growth Engine Or Achilles' Heel? [View article]
    I gave my iPad 2 to my daughter, after I bought an iPad Air. The installed base keeps growing. The iPads last longer than the other, cheap plastic android devices. The same happened with PC's. My neighbor went through 3 PCs in the same time as I owned one Mac. Then he bought a Mac, and still has it after 5 years. So is Apple stupid for making devices that don't break? No.

    Naturally, people who bought iPads will not upgrade every 2 years like a phone. They will keep it until it no longer meets their needs, or it breaks.
    Jul 5 04:04 PM | 8 Likes Like |Link to Comment
  • iPad: Growth Engine Or Achilles' Heel? [View article]
    Does Omega or Rolex worry about the sales of cheap Timex and generic watches from China? Timex may worry about those cheap watches. Rolex worries about Omega, Breitling and TAG Heuer, not Timex.

    As Apple continues to build QUALITY hardware with easy to use and usable software, they will stay ahead of cheap $70 plastic Android tablets sold at Walgreens and K-Mart and in China, and ahead of Samsung.

    This is NOT an either/or market. Many players can live in it, just like they do in ALL other industries (cars, watches, appliances, soft drinks, fast food, etc). This is NOT DOS/Windows vs Mac anymore. The world has changed.
    Jul 5 03:51 PM | 5 Likes Like |Link to Comment
  • The Next Phase Of Smartphones [View article]
    Steve Jobs understood the essentials of what makes something valuable to a customer. The lowest price for something isn't always better. The drive to build the cheapest thing has driven down quality in many industries. Refrigerators that used to last 20+ years without breaking now barely last 5. Amazon has so driven down the price for books that authors can't make money writing. Apple is doing the classic supply and demand thing. They build a quality product, and people will buy it at a higher price because it provides them with value. Those who call Apple customers "sheep" because they dare pay more than the absolute minimum for a device, don't understand how a value proposition works. Just as I would never understand how some women can pay $400 for a pair of uncomfortable shoes that look great, I do not fault the shoe maker for charging $400 if people find value in those shoes.

    Apple provides enough value to enough people to be the largest company in the world.
    Jul 5 10:51 AM | 1 Like Like |Link to Comment
  • Apple Needs To Deliver Now [View article]
    I have both an iPad Air and a MacBook Air. I find that for a good chunk of what I do, the iPad is very convenient, and some of the apps are more useable than the apps on the MacBook. I love reading the

    However, if I'm doing a lot of photo editing or MW Office work, I want the laptop. The iPad is NOT a full laptop substitute, even with the keyboard. And a i

    So make a list of what you want to do with the equipment, and that will tell you whether a laptop or iPad is better.

    Or get both!
    Feb 26 04:49 PM | Likes Like |Link to Comment
  • Apple Buy Signals Confirmed [View article]
    The problem is that there are so many large institutions and large funds that trade Apple technically, that technical trading (and options trading) drives the share price. The only things that would reduce the swings would be to massively increase the dividend (which rewards long term owners of the stock vs. options) and split the stock, which would also reduce the effect of options traders.

    I would also like to see Congress change the tax code to reward long term investors by reducing long term capital gains (maybe a 5% tax on long term gains on stock held for > 1yr), and punish short term traders (a 50% tax on stock held for less than one month, 30% for less than 6 months, 75% on stock held less than one day, etc.) The high speed traders are killing the "investor".
    Feb 12 11:52 AM | 4 Likes Like |Link to Comment
  • Apple urges shareholders vote against Icahn buyback proposal [View news story]
    Mr. M changes the oil on his car every 1000 miles, and does a complete engine overhaul every year. Me. A follows recommended practice and changes his oil every 10,000 miles, and does an overhaul every 100000 miles. He spends 20% of what Mr. M spent. Is Mr. A foolish, or is Mr. M foolish? Same for R&D. A company can spend huge amounts on R&D, and not commercialize much. Or they can have laser-like focus and spend a fraction, but get major commercial benefit. Picking on Apple's R&D spending is disingenuous. What did Microsoft get for their R&D spending on the Courier tablet? Besides, you should count Apple's purchase of smaller companies for their technology as R&D spending.
    Dec 28 02:01 AM | 7 Likes Like |Link to Comment
  • Apple's Huge Ecosystem Blunder [View article]
    And Apple had problems in the 90's because they followed conventional wisdom and also didn't actually make great products. There were some really sucky Mac's made in the late 80's and early 90's. I personally bought a Power Computing Mac-compatible in the early 90's, because it was cheaper and could run Mac OS. I contributed to their downfall. Steve Jobs separated Apple from the beige box syndrome, and started Apple back on the road of differentiated products that people wanted to buy, and also was profitable. So now Apple still has a low percentage of the traditional PC market, but they make more money than anyone else in that market (excluding iPads). With iPads, which now should be counted as a "PC", Apple is the clear winner.
    Sep 14 10:43 AM | Likes Like |Link to Comment
  • Apple's Huge Ecosystem Blunder [View article]
    What is this "global battle"? Has Mercedes or BMW lost the "global battle" for cars? They do make cars in India and China, but BMW and Mercedes are still aspirational brands. Perhaps Apple doesn't NEED high market share to "win". And by "win", I mean make large profits.

    People tend to forget that while people like Afam would probably buy an iPhone if it were $200, they are likely not spending money in the app ecosystem. Mr. Edozie, do you and your friends BUY a lot of apps through the Google Play store? or do you download mostly free apps?

    It is the totality of the revenue stream that is also important. Many iOS developers say that they use fewer resources developing for iOS vs. Android's various versions, and that their revenues are higher from iOS. That was also Microsoft's secret sauce in the 90's (Developers, Developers, Developers... to quote a soon to be former MSFT CEO). Apple learned this with the App store.
    Sep 14 10:36 AM | 3 Likes Like |Link to Comment
  • Apple: Is Tim Cook The Next Steve Ballmer? [View article]
    Who would be a better CEO for Apple than Tim Cook? Someone currently at Apple (Phil Schiller, Eddie Cue, Jony Ive)?? Or someone from the outside? Steve Jobs is dead, and he didn't leave a clone. So when you suggest that Cook isn't up to the task, please suggest an alternative.
    Feb 20 04:41 PM | Likes Like |Link to Comment
  • A Sober Wake-Up Call The Morning After [View article]
    Libraries are places where communities gather, children learn to love books, and in general, benefit society as a whole. In poor communities, libraries can be a place where inner city kids can find a place to enjoy learning.

    My local library DOES hold adult education classes, which helps retrain people. Libraries have been around for 1000's of years (run by closed societies), but PUBLIC libraries to help society in general is relatively recent.
    Nov 8 04:38 PM | Likes Like |Link to Comment
  • A Sober Wake-Up Call The Morning After [View article]
    People want something for nothing. Greeks are protesting because they want a leisurely lifestyle, government subsidies and not pay taxes for it. We Americans work more and vacation less than most developed countries. So we will do OK. But those of us working are working harder than ever. But people who say they want to cut the deficit, cut taxes and STILL want the government services are not being realistic. We need more realism in politics. If nothing else, let's start by sitting down and looking at the problems realistically. If you hate Obama, fine. But love this country and work together to fix the problems.
    Nov 8 10:53 AM | 1 Like Like |Link to Comment
  • A Sober Wake-Up Call The Morning After [View article]
    The point is that there are many people who do not and would not give money to help whole communities of people, which improves the lives of everyone. Imagine if public libraries did not exist today, and then someone proposed using tax money to let people read books for free? Would you be against it? There ARE legitimate reasons for levying taxes, and most people (Democrats, Liberals, Republicans, Tea-Partiers), myself included, would not volunteer to pay for some things if not FORCED to do so via taxes.
    Nov 8 10:45 AM | Likes Like |Link to Comment
  • A Sober Wake-Up Call The Morning After [View article]
    There is no "wealth redistribution" in the United States. There IS the idea of shared sacrifice and paying for the common good (hurricane relief, military, police, fire, clean energy, etc.). There are many people who are very selfish, and don't like the idea of helping others who are less fortunate. The federal income tax started only really started in 1913 (there were various income taxes before that, but short lived). Before that, there was a HUGE income gap between rich and poor.

    If you want to see socialism, look at Sweden and Norway. They pay $10gal for gasoline, and 80% income taxes. They also have health care for all. Obama would be a right-wing conservative in those countries!
    Nov 7 11:39 AM | 5 Likes Like |Link to Comment
  • Why Apple's Numbers Tell Us Not To Worry [View article]
    OK, so Apple has more competition. But they've always had more competition. And many seem to assume that Apple will have no new products, just more of the same products. Is that realistic? Even in the "lost decade" between Jobs, there were new products.

    Single digit P/E growth? People all of a sudden dropping iPads for Surfaces? I doubt it. Apple may be forced to lower their prices, or maybe not. During the crash of 2008, pundits said that people won't buy higher priced Apple products. But they did, and Apple actually grew then.

    Arguing that an iPad Mini is $130 too high is like saying that all watches should be similar in price because they all tell time. Why should a Citizen watch cost more than a Timex or Casio? How is it possible that Rolex can charge more money and get away with it?

    Computing devices are becoming just like any other device. People will buy them based on their perceived value to them, and how the purchase makes them feel.
    Nov 2 06:23 PM | 6 Likes Like |Link to Comment
COMMENTS STATS
47 Comments
130 Likes