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citizenleung

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  • The Future Of Apple Pay [View article]
    I am long AAPL. That said, the chances of Apple Pay disrupting Visa and MasterCard are between none and none.

    Here are the steps of a credit card payment:

    1. The cardholder presents a credit card to the merchant to pay.
    2. The acquirer (the merchant's bank) pays the merchant the amount of the credit card sale.
    3. The issuer (the bank that issued the card to the cardholder) pays the acquirer. Visa and MasterCard serve as networks to connect the acquirer and the issuer and facilitate this transaction.
    4. The cardholder pays the issuer.

    Apple is not the cardholder, the acquirer, the issuer, or the network, and unless you shop at an Apple Store, Apple is not the merchant, either. In other words, Apple does not play an irreplaceable role in transferring money from the buyer to the seller. To think that Apple can create a network of Visa and MasterCard's breadth or to become a closed-loop like American Express, even over a decade, is sheer lunacy. Even spending every penny of Apple's gigantic cash hoard to do so will not guarantee success.

    What Apple Pay does brilliantly is to make step 1 of the payment process as easy, private, and secure as possible. These qualities will likely cause more people to want to buy an iPhone and, after joining the ecosystem, to buy even more Apple products.

    Finally, to suggest that the money saved from removing Visa will be passed on to the consumer is naive. Either Apple will increase its fee or the retailers will pad their bottom line (most likely both). There will be no savings.
    Nov 6, 2014. 10:36 PM | 29 Likes Like |Link to Comment
  • Apple Set For Strong Sales Of iPhone 6 In Just A Few Weeks - But Is It Too Little, Too Late? [View article]
    It's sad to see an adult whose life is so empty that he needs to define himself by what stock he shorts.
    Aug 28, 2014. 02:30 AM | 26 Likes Like |Link to Comment
  • Apple's Achilles' Heel: Samsung Has An Arrow Pointed Straight At It [View article]
    "There are more developers using Android ..."

    Perhaps, but they don't appear to be interested in developing apps for Android tablets.
    Dec 17, 2012. 12:42 AM | Likes Like |Link to Comment
  • Apple's Achilles' Heel: Samsung Has An Arrow Pointed Straight At It [View article]
    Sure, Android's tablet share will outpace Apple's in 2013. However, how many of those Android tablets are either 1) shipped but not sold or 2) serving as glorified paperweights on their owners' desks or, worse yet, forgotten in a drawer or closet? Based on usage statistics compiled by numerous third parties, there are huge piles of Android e-trash lying around.
    Dec 12, 2012. 03:41 PM | 5 Likes Like |Link to Comment
  • Apple's R&D Numbers - Something Good Brewing, Or Something Wrong? [View article]
    Apple is doing more and more in-house (designing chips for mobile devices, maps, etc.), which probably necessitates greater R&D spending.

    On innovation, the only developments over the last 5-6 years in the mobile space that qualify as "innovations" are the original iPhone and the original iPad. All mobile devices since, whether by Apple or any other manufacturer, have been evolutionary rather than revolutionary products. The Surface is innovative for Microsoft's standards, but tiles and a kickstand are not, in and of themselves, "innovative."
    Nov 27, 2012. 04:58 PM | 6 Likes Like |Link to Comment
  • Apple: Take Profits Before You Lose Them [View article]
    I was severely tempted to sell AAPL (less than 10% of the total) yesterday. After seeing what happened in the premarket, I pulled the trigger. AAPL was pushing 20% of the portfolio, and as much as I love it, I had to sell some.

    Internally debating whether to sell AAPL is a good problem to have.
    Apr 3, 2012. 10:04 AM | Likes Like |Link to Comment
  • Apple's Cash Should Be Used For These Acquisitions Instead [View article]
    I love how people continue to think of inventive ways for Apple to set fire to large piles of its cash.
    Mar 26, 2012. 11:07 PM | Likes Like |Link to Comment
  • Should Apple Shareholders Take Boycott Talk Seriously? [View article]
    Apple gets the headlines because of its dominance, but you correctly mention that the issue applies to all electronics makers. Boycott Apple for who? I hope would-be boycotters understand that Samsungs, Lenovos, and Dells are not manufactured at Googleplex-like fantasylands where workers can play video games and receive massages on the companies' dime. Perhaps they can do without their smartphones, tablets, computers, etc., etc., ... .
    Jan 30, 2012. 11:07 PM | 1 Like Like |Link to Comment
  • How The Steve Jobs News Impacts Apple In The Long-Term [View article]
    Immelt's not as good as Welch at earnings manipulation.

    Of course, Welch's turning GE into a financial services company had nothing to do with its performance over the last few years ...
    Aug 25, 2011. 09:06 AM | 1 Like Like |Link to Comment
  • A Perspective On The Great Steve Jobs [View article]
    Politically, Jobs is much closer to Krugman than you.

    Nevertheless, it would take an Arab-American, Democratic, liberal hippie to be the best at capitalism and entrepreneurship, wouldn't it?
    Aug 25, 2011. 12:24 AM | Likes Like |Link to Comment
  • Is Apple Mania Warranted? [View article]
    GE is a financial services company with a minor focus on the industrial sector. Given the uncertainties in the financial sector, one can argue that a $200B market cap is generous. If you strip away the Welch-style accounting gimmicks and fake profits, Apple could very well be three to four times larger than GE.
    Jul 25, 2011. 03:59 PM | 3 Likes Like |Link to Comment
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