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  • Apple's Q1 Looks Certain To Disappoint  [View article]
    You state: "The strength of a platform can be measured in a number of ways:
    1) Strength of brand
    2) Number of users
    3) Size of applications library"

    How about who takes the most margin dollars? For an investor margin (i.e. profit) and margin share is king. As far as I am concerned making money is what makes the world's largest company successful, not unit market share. I'm glad they prioritize profits over units ... in iPhones, computers, App Store, and every other segment & business transaction.

    Wall Street Journal, July 12, 2015
    "Roughly 1,000 companies make smartphones. Just one reaps nearly all the profits.

    Apple Inc. recorded 92% of the total operating income from the world’s eight top smartphone makers in the first quarter, up from 65% a year earlier, estimates Canaccord Genuity managing director Mike Walkley. Samsung Electronics Co. took 15%, Canaccord says.

    Apple and Samsung account for more than 100% of industry profits because other makers broke even or lost money, in Canaccord’s calculations."
    Dec 30, 2015. 04:51 PM | 3 Likes Like |Link to Comment
  • Apple: Shift In Handset Distribution Model A Negative For iPhone Adoption  [View article]
    I Agree ... the lease approach and the new carrier "turn it in early" will keep folks in new phones, intact probably accelerating the churn for those who like/want the new models. Previously I had to pay several hundred dollars, sign a two year contract and be locked in to a carrier get a new phone "for free" using embedded payments. Now I just say i want a new one every 12-18 months, keep paying the $30 per month (which I believe most folks in this market will easily tolerate) and they get the new model.

    The refurb market is gravy for apple. They buy only what they want in terms of quality, refurb, and sell. Inventory management is simple, overhead is low, and the sales are upside as the buyers would not otherwise be buying "new" iPhones due to the entry price floor being too high.
    Oct 14, 2015. 11:39 AM | 3 Likes Like |Link to Comment
  • The Real Importance Of The Apple Car Project  [View article]
    There is much room in the world's economy of products for high quality, well designed, practical, functional, and easy to use integrated products. Apple is well positioned to service and capture this higher margin business. If not them, then who?

    I'm old enough to remember when things were built to function and last ... everything didn't always wear out or fall apart because it was made in China. Apple Everywhere could displace many cheap (low margin) "disposable" products with quality merchandise.

    Not everyone would buy Apple products, but as we can see now, Apple could continue to do very well in terms of both larger revenues and superior margins with respectable, but not dominant, market share.

    Long Apple...
    Feb 20, 2015. 11:13 AM | 5 Likes Like |Link to Comment
  • Did Apple Pay Just Lose Billions?  [View article]
    There will be a lot of jockeying as NFC, MCE and chip & pin create a disruption in the retail payment market. I will not use MCE - too much hassle and for now do not have an ApplePay capable device. With that said, merchants will pay what they have to in order to keep their sales growing. There is room for multiple payment methods just like iOS and Android exist together - to the significant benefit of the smaller market share iOS. Alas, the MCE crowd may find a lot of folks still pulling out plastic.
    Oct 29, 2014. 12:20 PM | 3 Likes Like |Link to Comment
  • Google Looks To Expand Its Addressable Market Size With Satellite Launch  [View article]
    Launching satellites is just part of the "opportunity". Receiving those signals and being able to transmit back is going to make some antenna company quite happy. After all, the Internet is a bi-directional beast.
    Jun 4, 2014. 08:31 PM | Likes Like |Link to Comment
  • Apple's R&D Spend Points To Multiple New Products Exiting The Pipeline  [View article]
    Please be careful how you compare patent filings. Samsung, IBM and then next 19 top filers may have much broader product ranges. We should compare patent filings in the relevant market spaces. Apple may not end up number 1 on the new scale ... but I suspect they would be top 3 or 4.
    Feb 3, 2014. 01:01 PM | 3 Likes Like |Link to Comment
  • Insiders Are Selling Google  [View article]
    Diversification ... 2 of 7 sold over 10% of their holdings ... the rest sold less than 1%. Free cash flow and diversification are the more likely story. Sounds like someone's gonna get a new iPad for Christmas!
    Nov 11, 2013. 04:24 PM | Likes Like |Link to Comment
  • Amazon Has A Moat Without A Castle  [View article]
    And their sales tax holiday will come to an end sooner or later too. I love Amazon as a supplier of goods, but I am not so excited about AMZN. As a consumer, I've bought a lot of goods over the years from companies that went out of business - but I never bought their stock.
    May 6, 2013. 05:43 PM | Likes Like |Link to Comment
  • Apple: Awaiting Period 3 Chaos  [View article]
    Or you could open a "stop gain" order at $460 !!
    May 2, 2013. 01:11 PM | Likes Like |Link to Comment
  • Apple Kitchen Sinks Q3, But Announces Huge Cash Plans  [View article]
    Thankfully, you're "not a professional wall street "analyst"." Those guys seem to have forgot what they are supposed to be doing.
    Apr 24, 2013. 09:02 PM | Likes Like |Link to Comment
  • Android Vs. iOS: Will The iPad Suffer The Same Fate As The iPhone?  [View article]
    Here we go again ... comparing apples to oranges ... or not.

    [a more legitimate concern is that Google's (GOOG) Android based tablets would rapidly eat up iPad's market share just like Android smartphones are dominating the smartphone market]

    If you want to analyze iOS vs. Android marketing share and infer something about the developer of the operating system that is one thing. (arguably Apple makes a lot money more money on iOS, the operating system, than Google does on Android) However, if you wish to compare hardware using iOS to hardware using Android then you need to look at the hardware manufacturers by name.

    As a single proprietary iOS vendor, Apple is doing awesome in market share. Name me another market where 20% or 60% market share respectively, and more importantly the majority of the market profits, would not be praised with a proprietary product. When comparing hardware vendors, other than Samsung (i.e. 1 competitor) the other suppliers of products using the generic Android O/S are minuscule compared to Apple (and Samsung) in both units and margin dollars.

    So we have two dominant competitors - what in the world is wrong - or different - about that than any other industry?

    Let's look at the Prius division of Toyota - Your argument is kind of like saying the Prius division is going away because all of the gasoline vehicles (GM, Ford, Toyota, Nissan, Volvo, and 100 other manufacturers) sell more cars. Buut the Prius division is highly profitable (presumably). Prius is one model from one company - don't compare it to all of the other non-electric cars lumped together - that doesn't make sense. If you want to compare Prius electric to Volvo gasoline - one on one - that's fine but not 1 on 100, i.e. all of the gasoline vehicles.

    Apple is but one company that in the case of both iPhone and iPad essentially made the category viable (I know they weren't the first in either category - but they made both categories explode in sales). Of course manufacturer "first" in a category will always lose unit market share - that is to be expected and is not necessarily a bad thing. The key, which Apple has been able to manage exceptionally well, is that they dominate the take home of margin dollars (and an awesome ecosystem). Ultimately, there is no reward in the board room or on wall street for selling the most units, the rewards are for for revenues and margin/profit dollars.

    - Does it matter if Apple does not have 70% market share (iOS or by device)? no.
    - Does Apple need to make sure it's market share does not go to zero? yes.
    - Does it matter that total Apple's margin dollars are the highest in the segments? absolutely?
    - Do they need to make sure they keep making money on their product sales? yes.
    - Does the fact that the rest of the world uses Google Android and Apple uses iOS matter? yes, because Apple is monetizing iOS.
    - If Android outsells iOS, or Apple has less than 50% O/S market share mean bad things? Absolutely not.
    - Do the trends in market share matter? yes.
    - Should we be looking at market unit growth alongside market share? yes. These markets continue to grow.
    - Do the trends in margin dollars matter? Yes, more than market share does. Apple's margin dollars continue to grow in spite of declines in market share and the ups and downs of absolute product margins.
    - And do all of those other market dynamics about product attributes and customer needs matter? absolutely!
    Apr 8, 2013. 10:52 AM | 10 Likes Like |Link to Comment
  • Apple Rumors Are Swirling About Music Deals This Week: Buy The Rumor  [View article]
    Or all of the above. Truly sewing up content (audio, video, old & new) on an awesome platform (iOS/OS X) on superior hardware (iPhone, iPad, Mac) in a integrated (closed!) environment (iTunes, App Store, iStreaming) could be the piece d'resistance. They have the cash - I'd rather they invest in their future than dole it out to us - much higher total investor ROI!
    Apr 7, 2013. 06:09 PM | 4 Likes Like |Link to Comment
  • Google Fiber Is A Growth Catalyst  [View article]
    "Despite profit margin erosion, I would always welcome any additional source of revenue so as long as it adds to the bottom line."

    I agree. I also wonder why this is a positive for Google and a negative when applied to Apple?
    Mar 21, 2013. 03:00 PM | 1 Like Like |Link to Comment
  • Will Apple Exist 3 Years From Now? How Much Will It Be Worth?  [View article]
    A day going by without an innovative product just might just be a day _closer_ to an innovative product. Don't forget Apple has a track record of surprising success with most of its new products over the past 10 years or so, however, like every other company, they have had a few dogs and "hobbies" as well.

    Whether the author is right or wrong is not really the point - to me it's a point of view and perspective that should be considered when I invest and or trade.
    Feb 22, 2013. 11:47 AM | 2 Likes Like |Link to Comment
  • A Cheaper iPhone Would Confirm A Lack Of Innovation And Declining Margins At Apple  [View article]
    So if Apple competes with Samsung they have no innovation and if they don't they are going out of business because Samsung is dominating. Seems like analysts think they are damned if the do and damned if they don't.

    Leveraging existing technology in new markets is good business. And frankly, some "cannibalization" of your own existing products to grow the over margin dollars of new markets is good too. Of course we would prefer to take share from others, but preventing others from growing share (or shrinking their share) is also good strategy.

    Take a look at this chart http://bit.ly/Zryrwi from this article http://seekingalpha.co... to better understand how Apple is competing across the board ... and apparently winning because they have the profit margins dollar dominance (more important I think that unit share dominance) to show for it.
    Jan 9, 2013. 12:17 PM | 1 Like Like |Link to Comment