Lets say they give away 1/10 as many phones as apple sold last year. That's about 15M they'd give away free. And let's say they are so bare bones that they cost only $100 to make. That's a cool $1.5B in losses. Compare that to last year's $39M in losses. Amzn shareholders should love that "opportunity". Oh, and what carrier is going to provide the cellular service for these free phones? Maybe Amzn will set up free wifi nationwide, that shouldn't cost much to provide. Bezo and Amzn will be BANKRUPT soon. With sales tax leveling the playing field and Amazon purchases having to pay for shipping and losing the instant gratification that brick n mortar buyers enjoy, this is doomed. For comparison look at Coborns Delivers, an on line grocery company that delivers your groceries. Their prices are way higher because their costs are. Amzn has only been able to survive this long due to its unfair sales tax advantage which it will lose soon making their overall price including shipping higher. Their "dumping" of product to take market share and drive competitors out of business should be prosecuted.
1.). Iphone 5s will get a higher volume than 5 just due to growing wave upgrade cycle.
2.). Iphone 5c will break open sales in emerging markets with billions of new potential customers.
3.). Iphones will be launched to 800M customer base of China Mobile and DoCo.
4.). Recent news that ios sells 42% of ad clicks is only going to mushroom with new volume of iphone 5c's being laumched.
5.). Iphone 5c is going to be the like the kids ipod springboard to the iphone. In other words, those who buy the 5c will be inclined to want to upgrade at some point to the high end iphone in the future.
6.). New ipad form factor will be launched before holidays.
7.). Increased itunes and iradio sales due to expanding customer base due to all of above.
The iPod touch 16gb is $229 and the only difference would be the cellular transmitter and antenna. Plus with a lower 8gb, they should be able to double their market share in China in 90 days.
They need to announce the 5c with 8gb memory for $349 and a $2XX 3g verrsion for low end markets and China. Id like to see them announce some enhancements that can be used day to day involving icloud and those huge data centers. That sort of software in house stuff could bring the surprise value that has been missing under Cook who hasnt been able to keep any of their stuff secret despite supposedly "doubling down". Need China Mobile launched by Sept 20th to impact this quarter.
If nothing unexpectedly good is announced, there will be a concert of demands he be replaced. This is his last chance IMO.
At first hearing about the 5s i wasnt really impressed. But this could be the starting point for something big like mobile credit payments where you won't need your card but your thumb print will prove the user is the one using the credit card and nobody else. Could eliminate credit card fraud completely including on-line. This could be enormous! I also like that they're the only phone with 64 bit chip and what sounds like the best camera in or out of a cell phone. Business also may be much more attracted to the 5S due to all of the iOS features geared to business as well as the security measures which are claimed to be better than blackberry. This may be HUGE!!!
I keep reading posts and news stories saying that the 5c is low priced. $549 vs $649 is not a significant price difference especially considering $100 gets you a far better processor, better camera, fingerprint sensor, and far better material then plastic. Unless Apple announces a CM deal tonight that lowers the entry cost for the 5c, like a monthly cut from CM of $10/month to lower the up front cost to customers, there's going to be no improvement in sales in China.
This stock will drop like a rock because Apple punked shareholders by lining up a stupid video replay of their iPhone event which is old news. There is zero reason to invite the Chinese media to a video replay that they could just read about in the morning newspaper.
If this ends up just being a video replay and nothing else, the Chinese Media is going to trash Apple and every person in China who was thinking they were getting a special event there this morning will also think they got punked. Apple China market share will drop to 2% as nobody will want to be associated with a punk company. Height of stupidity by Apple if that's what ends up happening.
Chinese media is so going to trash Apple for this First Ever event which contained no news they couldnt get off the morning web or newspaper. Just fd Apple in China. $450 price target by end of week.