Although it has been lost on just about everyone, there is an inherent brilliance in Apple's decision to forestall the delivery of the iPhone 5 and instead deliver a much improved iPhone 4 AT A MUCH LOWER PRICE POINT. Anticipating a tight consumer pocketbook, Apple knows that a lower price point will be key to driving sales in this poor economic environment. Better to delay the iPhone 5 for 9 - 12 months and let discretionary income rise to the iPhone 5 price point. Once again, Apple's strategic brilliance is way above the market, and its wisdom will prove itself in the revenue / earnings numbers in Q4 and beyond. My advice: load up on this mo'fo', now, while the gettin' is good. Back your truck, car, wheel barrow or any other freakin' conveyance you can get your grubby mits on and take advantage of this pull back. You will look back on this good fortune with the same delight you save for some of life's most precious moments: your first day of school; your first girl friend; getting laid the first time; getting in to an ivy league college; getting your knuckleheaded kid into a top upper east side pre-school. Get the picture? Get movin'
How about the brilliance being that they just introduced the best smartphone in the world? Are people really waiting for the new Samsung coming out? It has a display that is just a fraction of the resolution (less than 62 %) of the iphone 4s, it's camera isn't as good, the battery life talk time is just a fraction of the 4s, the software doesn't even come close to the functionality of the apple phones, let alone world wide breakthrough features like siri voice assistant or the fully integrated without user interaction icloud. People way underestimate the software of IOS 5. It truly will change expectations for the people who use it of how things should work together.
I can understand if hardware is all you have to pound home then the android makers have to concentrate on it, but they don't even have that advantage now. Don't buy into the lie of hardware specs. Hardware is what a person holds; software is what the user experiences. Apple has jumped out even farther ahead of everybody else than they were before. Iphone 4s - the best phone in the world.
Well-stated. Back to my original premise, the market is missing something uber-value-creating. My advice: back your truck, car, wheelbarrow or any other freakin' conveyance you can get your grubby mitts on and load up on this mo'fo' before the market wakes up this this temporary (under) valuation anomaly.
Agreed, it was brilliant. Remember, they have a 20 Billion guarantee from Sprint over the next 4 years, whether Sprnt sells through one phone or not. Not that APPL needs the 20 billion to pad any earnings disruptions, but it's just another reason to own this stock.
It adds hundreds of millions of new users in to Apple eco system who add to revenue stream through app purchase and itunes,
Once hooked to apple they will never go back and ultimately upgrade to higher models.
I agree. The free IPhone offer is probably the biggest announcement from yesterday. This brings the free phone crowd on board and like you said, once you go Apple, you never go back. I look forward to the 5 update next spring/summer. Just in time for my contract renewal.
In my opinion, it is a brilliant strategy. Analysts are very myopic in their thinking. Even if you count the numbers for iPhone 4S, which will bring new Sprint customers in US and New customers in China. Now that competition will follow the que of 4S, come with a much improved and redesigned iPhone 5.
Unfortunately, the "market" is driven by such a herd mentality, it misses the brilliance of the strategy. Once the year-end numbers come out, though, all the lemmings will be killing each other to get back on board.
You feel everything is alrigth with apple down 60 points in a little over 2 weeks huh ?
the eternal optimist.
you don't think apple could do anything...anything...at all to bolster the price of the stock ?
does this make it the best run company ?
Apple's major weakness at this point is its continuing unwillingness to communicate its strategic direction to the market. Because of this, you get negative surprises like the bungled new product announcement surrounding the iPhone 4S. This is very damaging to the company's, and, since the CEO is singularly identified with the company. Tim Cook's, credibiltiy. NOT a good way to debut as successor to Steve Jobs. I will be in touch with Tim, shortly, to offer to work with the company to address this deficit. Thoughts?