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nothingtosay

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  • Apple's Stock Is Not Manipulated, But Things Are Changing [View article]
    Nasdaq is up .6%, AAPL is down 1%, no big news on either front, something doesn't smell right...
    May 10 02:22 PM | Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    Why would forward profit estimates have to come down if estimates of future margins are too high??? What if they sell more of the product at the lower margin, wouldn't profit estimates be correct?

    Furthermore, selling price has nothing to do with the margin. Please think before you post nonsense. I've been in IT industry for 15 years, I remember people like you saying that laptops would cost $100 some day at the rate the prices were declining. Hmmm, doesn't Apple still sell laptops for $3k?
    Jan 9 02:19 PM | 1 Like Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    Love it!!
    Jan 9 02:09 PM | Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    Not only the perception @JohnnyBones, but real issues, like me wanting to buy some stocks for my kids' college fund, but can only buy 1 share of AAPL every few months at this price. If the price was in the sub-$100 range, I would feel much better buying a few shares every month to fund the college savings accounts. How many people out there are willing, or able, to buy 10 shares of AAPL at $520? On the other hand, 10-1 split, millions of retail investors buy 5 shares each, price goes up. At $520 they can't buy 1/3 of a share, now can they?

    Maybe they want the share price to be the same a the price of the iPhone! :)
    Jan 9 02:04 PM | Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    For the laughs mollymac, for the laughs... :)
    Jan 9 01:58 PM | 2 Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    But why, why the conspiracy? Wasn't AAPL the darling of the Wall Street just a few months ago. Even so, they are not able to push it down below $500. Or are they trying to prevent it from going below $500? Maybe the stock is tanking but hedge funds are manipulating the price to the upside, trying to prevent the huge selloff if it hits $499.

    Similar argument was made when FB went up 15% in the wake of 800Million shares being released in November. Didn't make any sense, why would the price go up if there are 30% more floating shares??? But, FB is at $30 today, up 50% from that day in November.
    Jan 9 01:56 PM | Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    @spence59 - how would you feel if they announce some major changes during the earnings call? Like stock split, or major new buyback plan? Wouldn't that be the right time to do it? Seems like AAPL has found support at $520 level for now, after the earnings call who knows. You know how Apple likes to be secretive and create a WOW factor with their announcements...
    Jan 9 01:51 PM | Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    Innovation:
    1 : the introduction of something new
    2 : a new idea, method, or device

    If iPad mini is not innovation, your argument wins, otherwise please consider Apple's product matrix from Steve Jobs' famous presentation in 1997:
    PowerMac iMac
    PowerBook iBook

    That's it, 4 product lines!

    Apple is still building their product lines based on a neatly arranged matrix, but the matrix is expanding. It makes a lot of sense to execute in the missing segments while taking advantage of economies of scale. Maybe not revolutionary, but certainly evolutionary innovation.
    Jan 9 01:46 PM | 1 Like Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    Great post! Some people just don't understand that even in parts of Europe average income is less than $10K/year http://bit.ly/VHu27U

    Apple has not compromised quality or margin at any price in Apple 2.0 era (since 1997). What makes anyone think that they would do so with an iPhone mini is baffling. If they do finally release such a product (rumors have been flying since 2009), it will be a quality product at a good price, like the iPad mini.
    Jan 9 01:39 PM | Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple [View article]
    This article makes a lot of assumptions, not a lot of facts. You know what happens when you assume...

    Margin compression?? I guess we'll find out in couple of weeks, but I doubt it. It is natural for margins to shrink a little due to new product releases and the inevitable higher production costs, but margins will not "compress" from 40% to 25%, they may go from 40% to 37%. Recent reports suggest that they may come in at 38% after all.

    Lack of innovation?? Let's review Apple product matrix:

    Apple product matrix:

    Mac: mini iMac Pro
    Notebook: Air. Pro. Retina
    iPod: shuffle. nano. Touch
    iPad: mini. New. ??
    iPhone: mini? 5. ??

    Looks to me like there are some empty squares in the matrix. Apple should release iPhone mini as well as iPhone Pro. How many people would pay for a premium iPhone product just to differentiate themselves from the crowd? I would! I want a better camera (video and still), liquid metal case, diamond brushed screen, etc. Look, people pay $18K for a phone http://www.vertu.com , why not a $1500 iPhone? Apple may be missing out on a fat margin and potential marketing WOW factor here.
    Jan 9 11:07 AM | 2 Likes Like |Link to Comment
  • App Monetization Drives Revenue Growth For Apple [View article]
    I was just reading that Asymco article after I wrote my reply :)

    That article talks about total data center operations costs, including music, iCloud, Siri, other stuff that we don't know about, etc. iCloud is probably a large chunk of that cost as you need a lot of storage to store unlimited amount of user data (Apple allows unlimited storage for your apps, music, and photos). It doesn't take much to store a billion apps when average app size is 20Meg. I've been in IT for 15 years, I'm familiar with data center operations, my estimate was an educated guess, but it is close. Even if the cost is $500M, App store profits are still $1.2B, or 3% of PROFITS (wanted to emphasize that because the title of this article is about revenue growth).

    CC processing fees cannot be $.25 on a $.99 transaction, even PayPal charges 3% for international CC processing.
    Jan 9 09:25 AM | Likes Like |Link to Comment
  • App Monetization Drives Revenue Growth For Apple [View article]
    Interesting analysis @tftf, but since when do CC companies charge 25% for CC processing. You don't think that Apple gets better rate than average of 3% that small businesses pay for CC processing?

    Let's break it down like this:
    $15M/day = $5.5B/year
    less 2% CC processing fee = $5.4B/year
    30% of $5.4B = $1.62B in gross profit

    Data center operations probably cost no more than $100M/year (building and equipment costs are amortized over many years, also, data center operations are shared with other products like iCloud, hence it is hard to predict this number, but it can't be much more than $100M, but let's say $200M for good measure).

    That equals cool $1.6B/year in pure profit for Apple. I will take it off their hands if they don't want it!!!

    Apple's Net Profit was $41.47B last fiscal year. App profits represent almost 4% of the total profits. Not bad, not bad at all!!
    Jan 9 09:02 AM | 2 Likes Like |Link to Comment
  • Is Siri An Android Assassin? [View article]
    I've given up on Siri, unfairly. She didn't know what my name was, that made me mad, and I shut her off. Many people probably did the same. It is a new and misunderstood technology. Like @Dan Smith above pointed out, it does some stuff well. It is a "personal assistant". My 9 year old son asks her all kinds of stuff and is constantly frustrated that she doesn't know the answers. That's not what the technology is, she is not an encyclopedia, or a search assistant (yet), she's a personal assistant (refer to @Dan Smith's comments for detail of what she does well)
    Jan 9 08:20 AM | Likes Like |Link to Comment
  • Over 40B apps have now been downloaded from the App Store, and nearly 20B were downloaded last year, Apple (AAPL) declares. The company adds developer payouts have topped $7B, and that there are over 500M active iTunes accounts (very useful for a mobile payments solution if Apple ever wants to launch one). The App Store still has a big edge on Google Play when it comes to app monetization, though the latter has been growing faster lately. [View news story]
    By "manipulating the story" I meant that you've gone out of your way to put a negative twist (however insignificant) on a positive news release (for Apple).

    I see that I'm not going to win the debate, but I think I have made my point quite clearly.
    Jan 8 12:15 PM | 1 Like Like |Link to Comment
  • Is Siri An Android Assassin? [View article]
    Ditto! It should be Ad-free, Apple's business model is selling devices, their ad revenues are a drop in the bucket.
    Jan 8 12:07 PM | Likes Like |Link to Comment
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