DTEJD1997 Posted September 5, 2013 Share Posted September 5, 2013 Apple is most certainly going to release an innovative computer in the form of the new Mac Pro. That is one of the most innovative designs I've ever seen, bar none. I've used and seen a LOT of computers in my time. Will it be a big seller? Don't know... Will it be a big profit center for the company? Probably not. If you have a spare 15 minutes, it is worth checking out... Link to comment Share on other sites More sharing options...
rkbabang Posted September 5, 2013 Share Posted September 5, 2013 I have a simple question for you all. Can you tell me, for you, what is innovation? I've seen so much comments like «Apple is being out of touch... Not innovating anymore, etc.». So i'd be curious to have your thoughts about that. Not sure you'll find a definitive answer, but there is an existing topic: innovation Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 5, 2013 Share Posted September 5, 2013 I have a simple question for you all. Can you tell me, for you, what is innovation? I've seen so much comments like «Apple is being out of touch... Not innovating anymore, etc.». So i'd be curious to have your thoughts about that. A change that improves people's lives. Link to comment Share on other sites More sharing options...
rkbabang Posted September 5, 2013 Share Posted September 5, 2013 I have a simple question for you all. Can you tell me, for you, what is innovation? I've seen so much comments like «Apple is being out of touch... Not innovating anymore, etc.». So i'd be curious to have your thoughts about that. A change that improves people's lives. ^^^^^^^^^^^^^^^^^^^^^^^^^ for the better. It can be something completely new or a new twist on something that already exists. Also, innovation isn't everything. The idea is useless without the ability to execute and get the product or service to people profitably. Link to comment Share on other sites More sharing options...
Palantir Posted September 5, 2013 Share Posted September 5, 2013 Can we ban the word "innovation" from this thread? My head hurts reading the same stuff over and over again, and it has really no bearing on the investment decision. Link to comment Share on other sites More sharing options...
CorpRaider Posted September 5, 2013 Share Posted September 5, 2013 Apple is most certainly going to release an innovative computer in the form of the new Mac Pro. That is one of the most innovative designs I've ever seen, bar none. I've used and seen a LOT of computers in my time. Will it be a big seller? Don't know... Will it be a big profit center for the company? Probably not. If you have a spare 15 minutes, it is worth checking out... Didn't they already do that? What's the hal 2000 looking little black cone called? Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 5, 2013 Share Posted September 5, 2013 uh- huh: http://venturebeat.com/2013/09/05/good-news-for-apple-japans-largest-mobile-carrier-docomo-will-start-selling-new-iphones/ Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 6, 2013 Share Posted September 6, 2013 Here's some segmentation info: http://tech.fortune.cnn.com/2013/09/05/apple-iphone-5c-daryanani/ Notice the difference between Apple and the other vendors. Link to comment Share on other sites More sharing options...
Viking Posted September 6, 2013 Share Posted September 6, 2013 This may explain some of Apple's surprising strength in iphone sales the past few months in the US; enterprise sales may be shifting from Blackberry to Apple. BlackBerry’s cloudy future hurts BB10 smartphone sales effort: http://www.theglobeandmail.com/report-on-business/blackberrys-cloudy-futurehurts-bb10-smartphone-sales-effort/article14154068/#dashboard/follows/ It is surprising how fast the mighty have fallen: Nokia, Blackberry, Palm, Motorola etc. This likely also at least partly explains why Apple trades at such a cheap multiple... nobody thinks they can maintain their profitability in smartphones & tablets. We will see.... Link to comment Share on other sites More sharing options...
Viking Posted September 6, 2013 Share Posted September 6, 2013 ValueInv, I read the RBC report today and they are modelling the 5C to sell for $300. I almost fell off my chair when I saw that price point. I was thinking Apple will sell the 5C for something around the $400 to $450 range. So many things about the 5C that are not known (internal specs, selling price, GM, cannibalization of 5S). I am very happy they are launching a product to sell to the mid market to grow sales and maximize total GM; I believe launching the ipad mini was also a great move (although it came with a near term hit to GM margins). I will be watching this development very closely. Looks like Apple will have lots to communicate next week. Hopefully deals with China Mobile and DoCoMo are announced. That will be huge. Rumors of a TV refresh as well; that would be icing on the cake. Link to comment Share on other sites More sharing options...
Palantir Posted September 6, 2013 Share Posted September 6, 2013 Cheaper iPhone is a great idea to increase marketshare, some people on this thread like to say that Apple should just keep the mkt share small, and milk cash out of it, but a larger marketshare will mean a better ecosystem. Right now Android users dont spend as much on apps as iOS users, but if they start defecting en masse, that will change. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 6, 2013 Share Posted September 6, 2013 Here is another example of a gimmick passing as an innovation: http://gigaom.com/2013/09/06/google-adds-remote-controls-to-google-glass-android-app/ Isn't the benefit of Glass that you don't have to take out your phone? It shows how little they are think out proper design. Link to comment Share on other sites More sharing options...
Palantir Posted September 6, 2013 Share Posted September 6, 2013 China Mobile said to have ‘all the power’ in iPhone negotiations http://bgr.com/2013/09/05/apple-china-mobile-iphone-negotiations/ Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 6, 2013 Share Posted September 6, 2013 China Mobile said to have ‘all the power’ in iPhone negotiations http://bgr.com/2013/09/05/apple-china-mobile-iphone-negotiations/ Right Link to comment Share on other sites More sharing options...
Palantir Posted September 6, 2013 Share Posted September 6, 2013 I think they do have all the power, given that they are you know, owned the the PRC government. Who could also easily wreak havoc with Apple's supply chain and manufacturing if they wanted to. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 6, 2013 Share Posted September 6, 2013 I think they do have all the power, given that they are you know, owned the the PRC government. Who could also easily wreak havoc with Apple's supply chain and manufacturing if they wanted to. Sure, and then they would a riot with all the unemployed workers. Not to mention the effect on the other two operators and consumers in China. On the flip side, China Mobile has been bleeding 3G smartphone subscribers. They have kept this to a minimum using cheaper phones. Enter the 5C and now rivals have a more affordable iPhone. The equation changes. Link to comment Share on other sites More sharing options...
Palantir Posted September 6, 2013 Share Posted September 6, 2013 I'm pretty sure the danger to Apple is far more than the potential danger to China. If Chinese don't get the iPhone, life will go on, and anyways they would like to promote their own industries, amplified by the fact that American firms are spying for the NSA! Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 7, 2013 Share Posted September 7, 2013 I'm pretty sure the danger to Apple is far more than the potential danger to China. If Chinese don't get the iPhone, life will go on, and anyways they would like to promote their own industries, amplified by the fact that American firms are spying for the NSA! And why is the danger to Apple more? Link to comment Share on other sites More sharing options...
Palantir Posted September 7, 2013 Share Posted September 7, 2013 Because Apple is at risk for reduced margins on iPhone if China Mobile demands concessions, refuses to subsidize it heavily, disruptions to the supply chains if China decides they don't like Apple's working conditions. I think it is near certain that Apple will have lower margins in China due to the weaker position they're in there. Link to comment Share on other sites More sharing options...
Guest valueInv Posted September 7, 2013 Share Posted September 7, 2013 Because Apple is at risk for reduced margins on iPhone if China Mobile demands concessions, refuses to subsidize it heavily, disruptions to the supply chains if China decides they don't like Apple's working conditions. I think it is near certain that Apple will have lower margins in China due to the weaker position they're in there. Or Apple can simply decide not to be at China Mobile. Link to comment Share on other sites More sharing options...
Liberty Posted September 10, 2013 Share Posted September 10, 2013 http://stratechery.com/2013/thinking-about-iphone-pricing/ Interesting thoughts on potential 5c pricing strategy. Link to comment Share on other sites More sharing options...
LC Posted September 10, 2013 Share Posted September 10, 2013 I have to say, I don't think they should attack the mid and especially not the low end of the market. Remember Munger's question about instances when a high price can actually increase sales: one such scenario is "mission critical" devices. Is a do-it-all smartphone not a "mission critical" device in people's daily lives? Link to comment Share on other sites More sharing options...
Palantir Posted September 10, 2013 Share Posted September 10, 2013 Yes, that is fine, but you need a decent amount of marketshare too. High end buyers will not update their phones as fast as in the future, and if they lose the low end their share would shrink. Some will argue that instead of marketshare, just try to capture a niche profit and milk cash out of it. Currently, iOS users spend more money on apps and other things, however, the problem with that is that if Android users start increasing their spending on apps, then that gap will start to close, which will be a problem for the attractiveness of the iOS platform. You need both, marketshare and profits. Link to comment Share on other sites More sharing options...
Guest wellmont Posted September 10, 2013 Share Posted September 10, 2013 I have to say, I don't think they should attack the mid and especially not the low end of the market. Remember Munger's question about instances when a high price can actually increase sales: one such scenario is "mission critical" devices. Is a do-it-all smartphone not a "mission critical" device in people's daily lives? it may do it all...but so do lots of other smartphones, and for less money. I have a $220 (1/3 cost of ip5) LTE smartphone, no contract, that "does it all". I don't believe raising the price of the iphone would yield satisfactory results. A student of history would suggest that, for all who are doing well in smartphones and tablets now, it's time to find what's "next". Link to comment Share on other sites More sharing options...
LC Posted September 10, 2013 Share Posted September 10, 2013 Currently, iOS users spend more money on apps and other things, however, the problem with that is that if Android users start increasing their spending on apps, then that gap will start to close, which will be a problem for the attractiveness of the iOS platform. I don't follow...if Android users start spending more, how does it follow that the iOS ecosystem becomes less profitable? Link to comment Share on other sites More sharing options...
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