squawk

Storm vs. iPhone: Both Have Issues

Thanks for the analysis, & being a "guinea pig" for the consumer who can't decide between an iPhone on AT&T or a Storm on VZW . . . or neither.

Your article saved me the time & the pain of going through what you did, though I'd never expend the effort to do so. Your analysis confirms the conclusions I arrived at without going through the road test, or perhaps more appropriately "torture track," that you did. Kudos for your martrydom.

The iPhone is an utterly impressive device. However, I, personally, could never sacrifice a network for a device. I first studied the Storm @ CES 2009, & was initially impressed, but quickly learned, when "polling" iPhone users, that the Storm had tremendous shortcomings.

Consensus in the market, immediately after the Storm's launch was lukewarm. That should tell the consumer a lot. If one followed the release of the Storm prior to its launch, it seemed pretty clear that RIMM "pushed" the device to market in face of increasing pressure to jump start sales, that the device, so revolutionary for RIMM, had a lot of problems, that likely would be worked out over time, or in other words . . . wait for the next generation of the device.

Hopefully, RIMM is working out the kinks in the present phone's design, as well as addressing other complaints consumers has expressed abuot the Storm, such as the touchpad & the like.

To me, a smart phone has to be a phone above all else. If a phone's design makes it unnecessarily cumbersome to make a call, then it's not ready for prime time. A smartphone has to have an interface that makes for EZ input of text. It seems the Storm fails miserably in these two critical areas.

Staying away from both phones . . . for now . . .seems to be the right decision. I look forward to studying the next generation Storm, and the day VZW announces a deal with AAPL to offer the iPhone to its customers.

Fourth Quarter Sees Decline in Cell Phone Shipments

Re: "Are cell phones no longer a growth business?"

What planet do you live on, Eric?

What's Happening at Apple: Steve Jobs

Agree, Tom B. One need only take a look @ MSFT's relative stock performance compared to the S&P, as well as frequently quoted competitors such as IBM, ORCL to see how pitiful MSFT's stock has performed since Gates left the helm.

On the product side, you forgot to mention the sinking of MSFT's flagship product, Windows Vista. Need I say more?


On Dec 22 09:17 AM Tom B wrote:

> "In our closest example, Microsoft doesn’t seem to have missed a
> beat after Bill Gates stepped down."
>
>
> Really? think closely about what you just said. When I see Ballmer,
> I see a loud-mouthed frat boy who: 1) couldn't move the flagship
> product (Windows) to UNIX and spewed forth Vista instead 2) launched
> abortive products like Silverlight and Zune 3) Continues to bankroll
> the money-losing XBox white elephant 4) Couldn't convince the Yahoo
> board to roll over and commit hari-kiri before the Mighty Microsoft
> 5) gave us those inexplicable Jerry Seinfeld ads.

Apple Could Crush Competitors With a $99 iPhone

Sorry, but disagree. Two points.

(i) Growth in domestic sales of iPhone units (presume your opinion focuses upon US market) will not be materially driven by price, but rather proven quality of AT&T's network. I don't think that AT&T's growth in subscribers due to price, but rather exclusivity of offering of iPhone as an revolutionary & appealing mobile platform.

(ii) It is not AAPL's strategy to compete on price, but rather quality.

Jobs Has Sold His 10 Million iPhones

RE: "I suspect that the iPhone 3G is not going to make a dramatic change in the US vs. overseas sales, and that the iPhone fad is still very much an American phenomenon."

Joel, this is your second post is as many weeks where you have been clearly clueless. The iPhone is not just a US phenomenon. What planet do you live on?

Steve Jobs' Fake Heart Attack, Courtesy of CNN

RE: "Apple can also learn a lesson from this. The stock would not have dropped so much if there wasn’t already a deep level of concern for Steve Jobs’ health and if the market knew who might take over in case of an emergency."

Erick, having read a # of your posts the past few months, it is clear that you have a tendency to see only the negative regarding AAPL, the company as well as the stock. So anything negative you have to say regarding AAPL cannot be taken as anything of value. But in reference to the above quote from your post, it is now also clear that you are a complete moron.

One lesson to be learned, clearly, is how stupid CNN is/was to sponsor a blog over which it has not control. Another lesson to learn in similiar vein, is that Seeking Alpha to remove from their bloggers morons like you that more often than not, post inaccurate information (i.e. 3G iPhone inventories @ a NYC Apple store), inaccurate analysis with a clear intent to taint the company & the stock. In my view you are not that much afar from johntw . . . or are you in-fact johntw? Wouldn't suprise me the least . . . because that's how you paint yourself on this blog.

Apple Investors: Fasten Your Seatbelts, Put On Helmets

Zack,

In response to:

"The late session bounce was apparently caused in part by a published report that the Wall Street Journal cited, that there were a number of companies kicking the tires of Lehman, including BofA. But after the market close BofA said they weren't interested, and GS backed off too. The bump may have been assisted by Oil hitting a nearly 6 month low, and short covering on beaten down sectors. . . I'm not so sure how much credence to put into this bounce,"

how do you explain the stock trading up $.50 - $.70/share after hours?

Did Apple Cave or Did NBC Bend?

Generally agree with comments here. Neither side "caved in." Negotiations seek to achieve a "win-win" for each party, & it's apparent that each side achieved a win. To take a more cynical view of business negotiation as only "win-lose" (i.e. a "cave in") shows a lack of understanding or appreciation for the negotiation process, nor the attributes of an informed journalist.

Six Reasons Why Apple's Still a Buy

Pretty much agree with most of your thoughts, however, the market will choose to believe what it wants. Agree with your premise that the "slowing demand" for handsets from manufacturers such as NOK, LG & Samsung may in-fact be due to the iPhone. Stated this hypothesis myself last week over at Silicon Investor. It's just a theory, but a believable one. Bottom line, we can't believe just one analyst's interpretaiton of the numbers. Stats are often subject to more than one interpretation.

Apple: Major Bounce or Major Breakdown?

Agree with prior comments. If anything, AAPL is not a "sell on news" stock but rather "sell on rumor." At least, that's been my experience. Hence, the author's article cannot be given much credence.

Why Apple Stock Is Poised To Go Flat - At Best

John,

Overall, your arguments are at best weak. Impression I got as I read what you had to say, was that you recently liquidated your holdings in AAPL, & hence felt a need to express your rationalization for doing so. Do you feel a bit better now?

The argument I find most hollow is the one about decreasing margins. Margins are not decreasing because of increasing costs, nor an inability to maintain existing price points. Rather, the decrease in margins is core to an intentional strategy to expand AAPL's market share, where in the past, many consumers have shied away from AAPL computer products because their relatively high price compared to competing Windows-based PC products.

I've never owned an AAPL iMac, but have continually purchased PC after PC . . . because of the business-accepted Windows-based OS. That is changing. I first considered an iMac when I deciding upon my last purchase. I went for a PC again . . . because I felt the iMac was too high priced . . . about 3X the cost of my Dell PC. Today, with AAPL's increasingly influence among consumers . . . & small business customers, the iMac et al become increasingly attractive. Lowering the price point of these products will only lead to increasing demand for AAPL products. The executives at AAPL clearly know this. Apparently, you do not.

Apple Investors: Capital Preservation First, Maximum Profits Second

Zack, nice to read that you're the first to admit that you talk out of both sides of your both. Inference to be drawn is that you really have no idea what you spoo on this blog on a daily basis. More likely, it appears to be some cathartic release for you to rationalize you constantly changing position in AAPL. It would be one thing to take a long term position & share with us your rationale, but it's a completely different thing to explain yourself on such a short term basis, as such thinking makes a market.

Bottom line, you're such a small fish that what you have to say is of absolutely no value nor consequence. Spare us unless you have to share your longer term views of the stock. TIA.

iPhone Apps: One Month, 60 Million Downloads

Having read your recent "articles," it's clear you have a negative bent on AAPL. How about writing something positive to demonstrate your objectivity? Until then, you have little if any credibility.

Research In Motion's 3G Counteroffensive: The Smartphone Arms Race Escalates

I think the "collision" b/w AAPL & RIMM is way overblown, likely b/c those in the media have nothing else to write about, & need something to write to attract an audience.

The iPhone is only available in the US from AT&T, so it's attractiveness is going to be limited to that segment of the market willing to "suffer" AT&T's network.

The iPhone is designed for the consumer, not the business market, though AAPL has opened the door to "compete" in the business market, by making the iPhone compatible with corporate email Exchange servers. Big deal.

I don't think AAPL is so focused on the business market, but for some reason, RIMM, or the so-called "pundits" who write about RIMM, are running scared. If the BlackBerry is all it is "cracked" up to be, why the fear?

In disclosure, I own a BlackBerry Curve, after having a replacement (i.e. re-furbished) Treo from Verizon crash on me. The tech supervisor steered me away from getting another Palm phone. That says a lot. I settled on the BlackBerry, & all I can say is that I'm not impressed. I don't fine the email UI that great, & the browser slow as well as problematic due to the extra relaying that takes place between my phone, BlackBerry servers, and the web page I'm linked to.

Notwithstanding, I would not even consider an iPhone until it was offered by Verizon Wireless, as I value the network more than I value the phone.

Bottom line, I don't think BlackBerry has much to be concerned with, and neither does AAPL for the foreseeable future. But let's re-visit this issue in a year or two, & see what inroads AAPL is able to make in the business market with its 3G iPhone. I'm willing to bet it is not going to be as great as some hope (AAPL cheerleaders), or as some fear (RIMM). JMO.

5 Reasons Not to Upgrade to the New iPhone 3G

Sorry, Tome, but one of the most pathetic posts I've come across on Seeking Alpha. It's pretty clear that you didn't do your homework before migrating to the 3G iPhone. You had to be aware of everyone one of the complaints you cite in your article.

1) AT&T networks sucks. Duh. If this were truly a reason to not to "upgrade" to the 3G, then why buy an iPhone in the States at all? Bottom line, you knew that AT&T network sucks before your upgrade.

2) Battery life sucks. This fact was widely reported in the press before the 3G iPhone went on sale. If an issue, why did you upgrade?

3) Wi-Fi will be ubiquitous. No, not really. Wi-Fi has limited range & will not be deployed beyond the current inventory of hot spots. You might be confusing Wi-Fi with WiMAX, but that's another story & no solution to your hope that 3G will become less important going forward. Bottom line, it won't.

4) No free SMS messages. Again, Tom, you knew this before deciding to upgrade. AT&T & AAPL are in business to make money, you know, generate revenue for investors. There's no free lunch. I'm sure the terms of the offer were made clear before you made the decision to accept them.

5) $10 for the data plan is a ripoff. No it's not. I pay $30/mo to Verizon for my data plan. Before getting a BlackBerry, I was paying $25/mo for only 10MB of data for my Treo. Sorry, don't think $10/mo more for 3G data is a ripoff.

Bottom line, I hate to say, but am in agreement with prior post, your article really makes you out to be a fool (i.e. idiot). Better luck next time. Caveat emptor, buddy.