Apple refuses to build a bigger phone. Shorts rejoice.
The biggest thing i took from the conference call was Apple's refusal to offer more choices.
Apple will lose half it's market share or more before they realize tens of millions of people want a bigger phone. Read the WSJ article about Apple losing its cool. In it a customer says the iphone just looks tiny compared to the Galaxy. So true. Phones, more now than ever are used for everything but phone calls. Sure, millions want a smaller phone, but millions more want a bigger phone. Here is a quote from the earnings call:
Tim Cook - CEO: Bill, its Tim. The iPhone 5 offers as you know a new 4-inch Retina display which is the most advanced display in the industry, and no one comes close to matching the level of quality as the Retina display. It also provides a larger screen size for iPhone customers without sacrificing the one-headed ease-of-use that our customers love. So, we put a lot of thinking into screen size and believe we picked the right one.
Is Tim Cook serious? No one comes close?? Lol
When the 5s is released make sure you're short, as i foresee a 15-20% drop when they stick with the 4 inch screen. Further, i don't think they'll release a larger iphone until late 2014 after sales have dropped over 50%. The same thing happen to Rimm. They thought no one wanted a touch screen. When they realized they were wrong, it was far too late. They were finished. Apple, to a certain extent is going down the same road. Short any and all rallies for the foreseeable future.