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Perceptions of a lack of security and innovation may be damaging Apple share prices, as big device launches loom

On Wednesday shares of the world's most valuable company (in terms of market capitalization) Apple, Inc. (AAPL) shed 4.2 percent of their value, or roughly $4.36 USD per share to reach a closing value of $98.94 USD.  The drop was worst since Jan. 28, 2014 when shares dropped $71.17 USD (roughly 8.0 percent or $6.19 USD per share, effectively, based on the recent 7-to-1 split in Q1 2014).
 
I. Drop it Like It's Hot
 
The drop shed a whopping $26.1B USD in (market capitalization value) -- more than many large companies' entire market cap.  On Thursday, after a rebound, losses have continued with shares trading down roughly 1 percent, erasing another $6B USD or so in value.
 
January's drop followed its calendar Q4 2013 (fiscal Q1 2014) earnings.  While Apple grew across the board, sales of its iPhone 5C mid-range smartphone were weak, as were sales of the 7.9-inch iPad Mini.  Hence iPad and iPhone sales missed the ambitious targets set by analysts.

Apple Money
[Image Source: SoManyMP3s]

By contrast yesterday's drop came at a time when the upcoming earnings report was a source of optimism and hope among investors.  Instead, Apple finds itself struggling to answer questions about security and innovation that could undermine its lucrative business model.
 
The first question lingered around growing celebrity anger over the hack of multiple female celebrities' iCloud accounts, hacks that resulted in the release of nude pictures.  Apple admitted that a targeted attack by hackers compromised the accounts of "certain celebrity accounts", but said that it was not due to a "breach" of the iCloud or related accounts. Rather it claimed the hack was due to "a very targeted attack on user names, passwords and security questions" indicating a brute force or spear-phishing attack on the affected users' iCloud accounts.

Jennifer Lawrence
Jennifer Lawrence was among the celebrities whose account was penetrated by the iCloud hack.
[Image Source: Kevin Winter/WireImage]

Reportedly many celebrities weren't buying Apple's efforts to deflect blame onto them, and concern grew that the mounting anger could manifest into a backlash against the company's products and services.

Second, concern mounted after Samsung Electronics Comp., Ltd. (KRX:005930) (KRX:005935) announced a number of buzzed about items at the IFA 2014 (Sept. 5-10th), including the big surprise -- the Samsung Gear VR Innovator Edition.

Samsung Gear VR

This was the fruit of its new partnership with Facebook, Inc. (FB), which recently purchased virtual reality super-startup Oculus VR.  Available "this fall" for an unspecified price, the headset marks a growing alliance between the internet's top social network and the world's top device maker.
 
For Apple investors the concern is perhaps not so much that the Samsung Gear VR will sell like wildfire (although it would certainly be a headache for them if it did).  Rather the concern may stem more from the perception that Apple is trailing Samsung in terms of hardware innovations. Even as Apple looks to try to one-up Samsung's established smartwatch brand, Samsung appears to be a step ahead, expanding the "Gear" family to include yet another wearable.
 
The Gear VR is expected to retail for a premium of around $300 USD, according to one estimate by CIO.com, which expects it to be sold exclusively in carrier bundles with the companion 5.7-inch Galaxy Note 4, priced at around $500 USD for both devices on contract.
 
Samsung also reinforced its status as an elite smartwatch innovator, introducing yet another device -- the Gear S.  The Gear S is Samsung's long-awaited Tizen OS smartwatch that can make and receive phone calls -- which ships in October at an undisclosed price.  The watch packs support for S Health and Nike Inc.'s (NKE) Nike+ -- apps that mirror at least some of the supposed selling points of the upcoming iWatch.


Samsung Galaxy Note Edge

Last, but not least, the quirky curved-screen 5.6-inch Galaxy Note Edge turned heads for being innovative, if a bit too gimmicky.  Samsung's increasing penchant for creative designs and risk taking has some Apple investors more than a little nervous.

A final factor dragging Apple down may be the rumor that the iPhone 6 will carry only 1 GB of DRAM in its 4.7-inch variant.  If true, this would be a rather crippling limitation given that most premium Android smartphones feature 3 GB of DRAM, a memory allotment mobile developers are making increasingly liberal use of.
 
The 4.7-in. iPhone 6 is rumored to pack a paltry 1 GB of DRAM. [Image Source: Feld @ Volk/Mac Rumors]

Commenters in the generally pro-Apple Forums section of MacRumors were largely blasting Apple's decision, if the rumors prove true.  Apple may yet bump the memory ration to 2 GB, but if it doesn't it's going to alienate many loyal fans, it appears.
 
II. Most Valuable Ever
 
In Aug. 2011 Apple's late CEO and cofounder Steven Paul "Steve" Jobs stepped down from the CEO spot of the company he founded for the third time in its then three-and-a-half decade history.  Investors went wild.  In after hours trading, shares of Apple stock bucked their long climb, falling as much as 7 percent during after hours trading. 

Steve Jobs
In his dying days Steve Jobs masterminded what seemed a clear blueprint for his successor, Timothy Cook. [Image Source: Jesus Diaz/Gizmodo]

Mr. Jobs would continue working from home for Apple until Oct. 4.  A day later he died of respiratory failure.  Apple share prices had climbed in roughly 7 percent in the month before his death, but they shed most of those gains in after-hours trading on the day of his death.
 
But Mr. Jobs had left his hand-groomed successor Timothy Cook with a clear roadmap which included potential future products like a smart TV and wearable "iWatch".  Apple's latest product, the iPad was only a year old and it was deep in the throes of wild growth.  And Apple's overall portfolio was just getting started sales-wise in many large electronics markets, such as China.
 
At the market close on Oct. 6, 2011, Apple had a market cap of $351B USD on share prices of $377.37 USD per share ($53.91 USD effective price per share with recent split) at the closing bell.  It had become the most valuable company in the world earlier in Aug. 2011, passing Exxon Mobil Corp. (XOM) (a feat analysts had widely predicted since Q1 2011). 

Timothy Cook
Using that plan Apple CEO Timothy Cook made Apple the most valuable company ever. [Image Source: AP]

A year later -- and ten months after the death of Steve Jobs -- Apple achieved an even more incredible feat, passing Microsoft Corp.'s (MSFT) December 1999 record of $615.34B USD nominal (inflation adjusted) high to become the most valuable company of the modern era in terms of nominal market cap.
 
That value was achieved after a 64 percent rise in Apple shares, with the record-setting share price set at $665.15 USD per share on Aug. 20, 2012 ($95.02 USD per share adjusted for recent split).  Later than month shares would reach $702.10 USD per share ($100.30 USD per share adjusted for recent split), for a market cap of $649.52B USD.
 
Some analysts predicted bullishly that by 2013 share prices would hit $1,000 USD per share.  Instead, 2013 saw a modest depression in share prices amid a global slowing of high-end device sales which stunted Apple's growth trajectory.
 
III. Market Saturation -- iWatch, 5.5-in. iPhone Phablet Face Tough Slog
 
But shares have been on a tear in 2014 since January's hiccup as new of larger screen iPhone phablets and the long awaited "iWatch" smartwatch approach.  Apple is expected to launch a 5.5-inch iPhone phablet (the iPhone 6) and its sports-geared smartwatch at a Sept. 9 press event on a community college campus in his hometown of Cupertino, Calif.
 
The 5.5-inch iPhone 6 phablet is expected to have a high-end spec that includes potentially a sapphire-glass screen, an Apple A8 SoC, and a new and improved camera.
 
But Apple's device faces a tough challenge given the deep entrenchment of LG Electronics, Inc. (KRX:066570)(KRX:066575) and Samsung in the phablet space.  Samsung's Galaxy Note product is in its fourth iteration and carries a nearly impeccable spec.  Apple will have to fight fire with fire.  It can do it, but it won't be easy.  Apple also has to worry about the 5.5-inch LG G3 Stylus and the 6-inch Samsung Galaxy Mega 2.

The Galaxy Note 4 -- the reigning king of the phablet market

Rumors about the iWatch have varied greatly, with some arguing it will have a square or round flat face, and others arguing it will have a curved display.  Either way, one thing's for sure -- it faces a tough task selling in the face of so many established rivals.
 
If Apple is going to make a killing on the iWatch, it will have to stand out from a growing pack.  Sony Corp. (TYO:6758) has long been producing smartwatches.  In March Google announced a new build of Android, called Android Wear.  Android Wear devices were out in force at IFA 2014, with models including the €199 (~$260 USD) ZenWatch from ASUSTek Computer Inc. (TPE:2357), the LG Electronics’ G Watch (announced in June) and G Watch R (just announced); Samsung Gear Live (a third-gen design announced in June), and the $250 Moto 360 smartwatch from the Lenovo Group, Ltd. (HKG:0992).

G Watch R
The LG G Watch R

Microsoft is also rumored to be launching a smartwatch wearable in Q4 2014.  Even HP is reportedly coming out with a fashionable smartwatch.
 
Apple has some high-end talent behind its product, surely.  But sales volume will likely be predicated on price, and Apple's desire to offer a haute fashion, sensor-packed iOS wearable may conflict with its ability to release it at a price for the masses.
 
Surely, the iWatch will sell and make some profit for Apple.  But for investors, the chief concern should be what kind of volume Apple can achieve.  In the worst case iWatch sales may follow in the line of iPad sales: increasingly feature-packed but high-price products struggling to make a mark in a market saturated with intriguing, lower-priced alternatives.
 
IV. Can Apple Turn the iPad Around?
 
Speaking of which, iPad sales will be a keenly scrutinized section of Apple's Oct. 20, 2014 fiscal Q4 2014 (calendar Q3 2014) earnings report release, given comments Mr. Cook made last month about sales hitting a "speed bump".  After seeing strong growth in 2014, iPad sales have for consecutive quarters fallen short of their levels they achieved a year ago.
 
Apple might be able to assuage investors with a modest October revamp of the iPad line with iterative improvements such as the Apple A8 processor, Touch ID, 802.11ac wireless, etc.
 
The hotter question is whether rumors of a 12.9” iPad Pro model are true.  The device is rumored to be aimed at an early 2015 launch and will look to take on the Surface Pro 3, perhaps bringing to bear the full potential of iOS 8's split-screen multitasking functionality.  The strongest evidence that this product is truly on its way comes from the supply chain.  A recent Bloomberg report claims that there are signs that suppliers are already gearing up to produce the larger tablet.
 
However, some of the strongest tablet sales are not in the large form factor, but rather in the smaller, cheaper tablets.  Cost cuts have reduced the price of used first generation iPad Minis to ~$200 USD, about the same price as the larger first generation Microsoft Surface tablet.  
 
But with a plethora of Windows and Android tablets available from the likes of Samsung, Lenovo, Acer, Inc. (TPE:2353), Xiaomi, ASUSTek, LG Electronics, Inc. (KRX:066570)(KRX:066575), Dell, Inc., Hewlett-Packard Comp. (HPQ), and Toshiba Corp. (TYO:6502) Apple is in danger of getting lost in the crowd.  Perhaps most dangerous is that these rivals are pushing brand new tablets with solid basic hardware for prices as low as $80-150 USD.



HP's Android tablet can be found for around $80 USD -- about 2.5 times less than a two-year-old iPad Mini.

A pricey iPad Pro is either a genius bucking of the mainstream trend, or a flawed foray.  Only time will tell which it is, should the device launch.


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This article is over a month old, voting and posting comments is disabled

>.<
By Motoman on 9/4/2014 6:59:17 PM , Rating: 4
quote:
Perceptions of a lack of security and innovation may be damaging


...so now the "perceptions" are causing damage, but the last 30 years of those issues, and others, being reality haven't?




RE: >.<
By Morg72 on 9/5/2014 5:12:01 AM , Rating: 2
It's affecting "A-list" celebrities so now people are paying more attention. No one cared before it hit main stream pop culture darlings.

I'm sure apple marketing will find a way to spin it all into a feature of some kind. No matter what someone may think of apple, they have to admit, their marketing department is amazing.


RE: >.<
By tonyswash on 9/5/14, Rating: -1
RE: >.<
By retrospooty on 9/5/2014 7:19:07 PM , Rating: 2
It has a nice spin, I can dance to it... I like it.


RE: >.<
By tonyswash on 9/5/2014 7:44:12 PM , Rating: 2
Try it to a bosa nova beat :)

Move them hips!


RE: >.<
By retrospooty on 9/5/2014 7:52:17 PM , Rating: 2
LOL... Meanwhile on the shipping docs at Apple's CM's http://i.imgur.com/At3V72Q.gif


RE: >.<
By Banana Bandit on 9/6/2014 4:29:00 PM , Rating: 1
Problem is Tony that the only ones we will actually hear about are the a-list accounts that lose their nude pics. Anything else gets hushed up as fast as it happens.

For instance if I had a icloud acct and my nude photos were stolen, I doubt very much if you are gonna hear a peep about it (frankly the thief's eyes would spontaneously combust from sheer shock after seeing them I digress).

But if I were, say, Hillary Clinton, you can bet that word would get out and auditors would be so far up Apple's ass that you would need a flashlight and grappling hook to find them. You can also bet that Apple would indeed start enforcing mandatory use their 2-factor authentication system.

Thing is, if Apple had their way, everybody and their dog would be uploading all their personal stuff to the icloud. However they leave it to use whether or not to sue 2-factor authentication. THAT is where their "not our fault" story falls apart. They have 2-factor security, but they leave its use optional -- which is should not be if they were really interested in being proactive with the security of the data people trust them with.


RE: >.<
By Banana Bandit on 9/6/2014 4:30:23 PM , Rating: 2
Though as much as it breaks my heart to say this -- the leaked pics of the iWatch that I have seen look smexy as hell!


RE: >.<
By Bateluer on 9/11/2014 5:50:20 AM , Rating: 1
> OSX and iOS are both more secure than other desktop and mobile operating systems. Everybody knows that.

Is that why they're always the first to get hacked at DefCons? I speak from experience that our OSX offerings were all compromised within 2 weeks of going live.

OSX is actually the least secure operating system shipping today, and made worse by the false sense of security Apple advertises.


Typical DT apple articl...
By KeithP on 9/4/14, Rating: 0
RE: Typical DT apple articl...
By inperfectdarkness on 9/5/2014 2:23:49 AM , Rating: 1
Is this yet another of Tony's shill accounts?

Your post is much funnier when I replace "DT" with "Apple"; replace "write about Apple" with "try to compete in the tech market"; and replace "with the" with "flooding the market with".


By Cheesew1z69 on 9/5/2014 3:29:23 PM , Rating: 2
quote:
Is this yet another of Tony's shill accounts?
It sure does read like a Tony post doesn't it?


RE: Typical DT apple articl...
By tonyswash on 9/5/14, Rating: 0
RE: Typical DT apple articl...
By inperfectdarkness on 9/6/2014 4:16:12 AM , Rating: 3
Ah. So anyone who has the rational sense to take umbrage with Apple is automatically a cretin. I'm glad the world is so transparently cut and dry to you:

-Unsuccessful black man = kept down by "the MAN"
-Successful black man = sellout
-Successful woman = b*tch
-Self-Interest = egotistical sociopath

For the record "quite a few people holding an opposing opinion" is not the issue. It's that if brains were gold, those people collectively couldn't buy a stick of gum. Arguing with an iTard--such as yourself--only results in you bringing up sales figures, publicity stunts, PR spin, historical revisionism, and a knee-jerk out-lash at any competing product. Succinctly, the Reality Distortion Field.

Tony, your RDF has been turned on for so long, and has so deluded your mind, that your presence on DT has been simply one of comic relief--since at least as far as I can remember. Thus, whenever anyone else posts up who also appears to be suffering from the RDF, I naturally call into question their presence--since it appears so markedly similar to yours.

Furthermore, since Apple is NOTORIOUS for unscrupulous tactics (lawsuits over shapes, outright lies about inventing technology, conveniently ignoring prior-art, baseless preemptive lawsuits to drive competition out of business, denial that products have flaws and are instead "features")--it would not surprise me in the least to eventually find proof that you and all the others inflicted with RDF are actually paid shills WORKING FOR APPLE. Of course, you'll deny that tooth and nail--you're good at denial.


RE: Typical DT apple articl...
By deltaend on 9/6/2014 3:29:21 PM , Rating: 2
*claps* Here here!

Although I don't know if Tony is paid by Apple, he is very likely highly invested in them. If you search the internet, Tony seems to spend every day of his life posting on every forum you have ever seen as an Apple apologist. Either he has nothing better to do with his time (such as being retired) or he really is paid by Apple to "spin" news articles, forums, and blogs to make Apple's name look shiny.

I will give Tony this... when he is done on a forum, he can polish a festering turd into a sparkling, white dump and then sell it you as an "innovation". :)


By themaster08 on 9/7/2014 7:20:04 AM , Rating: 2
quote:
Furthermore, since Apple is NOTORIOUS for unscrupulous tactics (lawsuits over shapes, outright lies about inventing technology, conveniently ignoring prior-art, baseless preemptive lawsuits to drive competition out of business, denial that products have flaws and are instead "features")--it would not surprise me in the least to eventually find proof that you and all the others inflicted with RDF are actually paid shills WORKING FOR APPLE. Of course, you'll deny that tooth and nail--you're good at denial.
Funny you should bring this up. Neowin and 9to5 Mac recently had an interesting article regarding Apple's journalistic manipulation:

http://www.neowin.net/news/apple-manipulates-journ...


iPad Pro
By djdjohnson on 9/5/2014 4:32:26 AM , Rating: 2
A 12+ inch iPad Pro wouldn't sell. I have a Samsung Galaxy Tab Pro 12.2", and it is unwieldingly large and awkward to use and carry. Everybody I've shown it to thinks so too.




RE: iPad Pro
By Bill S. on 9/8/2014 8:14:14 AM , Rating: 2
Well, it wouldn't sell to most normal folks. But we're talking Apple fanatics here, who will "upgrade" to the "next best thing", simply because of the perception that it's better because it's newer....and because it's Apple.


Duh
By hughlle on 9/4/2014 6:49:23 PM , Rating: 2
But then they can claim a record increase in share price, silly ??




12.9 inch iPad is for?
By GPig on 9/5/2014 4:17:54 AM , Rating: 2
I don't get it. The biggest complaint about iPads is that they do not do "work" well at all. Making it bigger will not make it a laptop replacement. Gauging by current iPad prices, it will probably be into Surface Pro 3 territory. It would be a no brainer which device to buy.

Perhaps they are intending to target rich old ladies with poor vision.




Clickbait article... again
By saarek on 9/5/2014 8:10:03 AM , Rating: 2
Well, let’s see what is revealed at the Apple event shall we.

Personally I prefer the Apple mentality of release one complete product as opposed to Samsung’s throw loads of shit at the wall and see which parts stick.

Of course I suppose some people will see 6 generations of a “smart” watch in the period of a year as innovative, as for me I see it as a desperate attempt to get half baked ideas out of the door so that they can claim they were there first.

Investors of any company are fickle and act like a flock of sheep, if a group is buying they must buy too and if a group sells then they must sell too.




Another Jason Mick Masterpiece
By SayWhut on 9/5/2014 10:57:15 AM , Rating: 2
I'm not going to defend Apple here, but I love how Dailytech has become the next semiaccurate. I swear, Jason must have learned directly from Charlie D how to have accurate "articles" on anything tech related. Purely sensationalistic drivel intended to drive page views and ad revenue.

Or, maybe he's practicing for a "journalism" career at Slate or Huffpo. I'd imagine this kind of "reporting" would go far there. Actually maybe those sites would be taken more seriously if they just put (blog) after every slanted article to excuse away their obvious bias. Seems to work for Jason.




Stock down?!
By just4U on 9/4/14, Rating: -1
RE: Stock down?!
By glowingghoul on 9/4/2014 9:18:58 PM , Rating: 5
Priced at 15 times earning in a sector where 25x earnings is the norm is "overvalued"? Along with some of the best financials of any company in the world, a healthy dividend, and they're about to buy back nearly $10 billion of their own shares.

Let me guess, you're Wall Street pro with an MBA from Wharton right? LOL!

The money is in the ecosystem, and Samsung ain't got one.


RE: Stock down?!
By Solandri on 9/4/2014 10:59:31 PM , Rating: 5
quote:
Priced at 15 times earning in a sector where 25x earnings is the norm is "overvalued"?

I think most investors are keenly aware that most of Apple's earnings is empty profit. That is, they're making huge earnings because of a fat profit margins, not because their products are necessary or provide integral pieces of technology.

Don't get me wrong - I'm not saying a huge profit margins are a bad thing. It's just that profit margins can vanish overnight. Whereas owning key technology (e.g. OLED, memory, and microprocessors for Samsung, CDMA for Qualcomm, Windows for Microsoft) is guaranteed to keep you in the game for many years. Apple doesn't have these things because they are for the most part a parts assembler and software company. The only key technology Apple owns is the iTunes/iOS store. And pricing stock based on iOS' continued dominance is a very risky assumption when it looks like iOS is headed for the same 5% market share as the Mac (albeit a lucrative 5%).

That's why AAPL is priced at "only" 15x earnings in a sector where 25x earning is the norm. They are one flop of an iPhone release away from losing half their earnings and market cap. (Contrast that with Microsoft which weathered the dismal reception of Windows Vista and 8 pretty well - because even though those releases flopped, it didn't mean people were gonna stop using Windows.)


RE: Stock down?!
By tonyswash on 9/5/14, Rating: -1
RE: Stock down?!
By Philippine Mango on 9/6/2014 1:59:05 AM , Rating: 3
Difference is, Jobs is dead, Apple will survive mostly because of how much cash they have. Otherwise they have no direction, no leadership. They share a lot in common with Microsoft in the regard that these companies just aren't capable of being disruptive with the market and innovating.


RE: Stock down?!
By nikon133 on 9/7/2014 5:43:28 PM , Rating: 2
But are Apple products overpriced - compared to comparable products from other vendors? Yeah I know they don't have products on lower end of price lists, where margins are paper-thin... but where they do operate... I don't know. It looks like high margins are rule of the game for everyone. I'm in a market for premium laptop. Price is not major issue (but still is), fulfilling following requirements is:

Light, 13 - 14"
Standard CPU preferable to ULV
8GB of RAM
256 - 512GB SSD
Good screen, both resolution and IQ wise
Good backlit keyboard and touchpad (machine will be used a lot away from the desk and in all lightning situations)
Good battery life - as good as I can get.

I am not limited with OS on this one. It is my personal travel/couch laptop, software requirements are Lightroom, MS Office, maybe some light video editing; all achievable with both Windows and OSX. Beside that, it is usual business - mail, FB, browsing, YouTube etc... so no limitations regarding platform there either. Eventually, I'd like Photoshop on that machine too, if I can get it for reasonable price... but that also does not limit me regarding platform. I don't want to game on this, as I game on most everything else - this is my escape from gaming, sort of.

And the thing is, for the price of MBP 13" Retina - NZ$2,500 for 8GB/512GB SSD - I cannot get equally equipped Carbon X1, or T440s, HP Spectre or Asus Zenbook... or any other that I came across. For the same price range, if I want premium Windows machine, I will have to settle with at least one of following compromises: less RAM, less SSD, weaker screen, weaker battery life; often more than one.

Granted, NZ is small market and thus limited. Maybe outside I could find better machine for the price, but I cannot be bothered with importing my laptop. A lot of brands are protecting their local branches and will refuse to sell you from overseas location, and there is question of international warranty too, which is still not universally offered. In short, I don't want to go that way.

So MBP is sitting on top of my laptop list. And that from a person who is not Apple fan. Last year I swapped my iPhone to Lumia 920 (and could not be happier), have Windows desktop for gaming and other "this-job-requires-I-get-my-lazy-arse-to-study room" tasks, Windows home server and media PC... even my tablet is Windows Pro ThinkPad Tablet 2; if nothing, I'm more anti-Apple than pro-Apple.

But if I ignore brand loyalties and try to think of what will serve my needs best, MBP it is.


RE: Stock down?!
By StevoLincolnite on 9/5/2014 3:02:15 AM , Rating: 2
quote:
"The drop shed a whopping $26.1B USD in (market capitalization value) -- more than many large companies' entire market cap."


Well, DT in this article have already stated multiple times that Apple is the "Most valued" company of all time in terms of market cap as Apple managed to hit "$702.10 USD".

However, back in 1999, Microsoft hit $620.58 billion, adjusted for inflation that's $846 billion.

However, there is still another company that beat them both, PetroChina, which on it's opening day hit $1 trillion.

Of course there are probably other "Companies" which probably dwarfs them all, but they would be state-owned.


Deeply amusing article
By tonyswash on 9/4/14, Rating: -1
RE: Deeply amusing article
By Makaveli on 9/4/2014 8:05:57 PM , Rating: 2
I bet that one hit you right in the balls didn't it tony :)


RE: Deeply amusing article
By Samus on 9/4/2014 11:25:14 PM , Rating: 1
I felt the article simply stated facts. The fact is Samsung is knee deep in smartwatch tech and apple hasn't even announced one yet.

What will save the iWatch, however, is NFC. If apple pushes NFC like they should have years ago, people will adopt it and the iWatch will easily be the hottest NFC accessory. Imagine paying for stuff just by authenticating your watch with a fingerprint then waving it in front of a terminal. Secure and convenient.

The iPhone on the other hand feels like a step, backwards. I think both models are too big. They should just make a 4.5" model and improve integration with the iPad for those that want a bigger device.

Things like touch to share and split screen airplay would be awesome.


RE: Deeply amusing article
By hpglow on 9/5/2014 2:40:27 AM , Rating: 2
4.5" is a step in the right direction but it doesn't cover all use cases. 90% of my phone use is browsing or answering email. I shouldn't have to buy a separate device like an ipad. That is insane. Just offer more variety. Having something in the 5.5" range suits my use case best. My wife only cares about the camera, again where is a photo focused product?

If all these rumors are true a new iPhone is going to be a hard sell... iOS is lean compared to Android but 1G of ram again. Yeh I realize it is to save some power but I think it is time to step up to 1.5 or 2G. The last sticking point is 16GB in the base model. If I can get a 32GB thumb drive for less than $15 I know Apple can source the NAND for under $10. Dual core doesn't bother me as long as it's responsive. My household has over $1k invested in iTunes purchases so I don't make these statements blindly. Apple really has no idea what we want anymore. I love the industrial designs but there are a lot of players catching up in that department.


RE: Deeply amusing article
By saarek on 9/5/2014 8:15:16 AM , Rating: 2
My wife's iPhone 5S runs extremely fast in all applications with no slow down.

If the performance is like that then throwing in extra ram is not really going to benefit you.

Assuming Apple can keep iOS optmised for it's devices the ram issue is actually a total non issue.


RE: Deeply amusing article
By FATCamaro on 9/5/2014 12:57:21 PM , Rating: 2
Well, the JLaw "selfies" on imgur nearly crashed my phone. The page size was too big for 1 GB RAM. I'm hoping for 2 GB at a minimum.


RE: Deeply amusing article
By drycrust3 on 9/5/2014 2:13:41 PM , Rating: 2
Totally agree. Innovation isn't about coming up with the right product every time, Innovation is about coming up with a new way of using technology every time. As the Mythbusters say, "Failure is always an option". You can't expect to innovate and not have failures.
The reason why apps are so important is because they let the user innovate in ways the maker of a smartphone can't imagine. That is also the reason the reported lack of memory in the new iPhone is so bad, if true then it hinders room for innovation.

Understand this: the biggest value and benefit of a new piece of technology is something the developer hadn't thought of.

I've said before, that one day only smartphones with 64 bit processors will be considered true smartphones, why did I say that? Because there is a level of capability with a 64 bit processor that isn't available with a 32 bit processor. That extra capability is what gives people more opportunity to innovate. The less capability a smartphone has, the less people can use it do different things, thus the less likely they are to innovate with it. Conversely, the more capability a smartphone has, the more likely people are to try out different ideas. An essential part of a smartphones capability is RAM. Here we have a smartphone with a 64 bit processor, which should be enough for people to say "Ah ha! A true smartphone! It will be great for innovating with!", yet it has reportedly less RAM in the phone than the industry standard, which, if true, gives it less capability than the industry standard. Thus, users have less opportunity to be innovative with it than other smartphones.
Go back to Steven Jobs "Blueprint", if you follow his blueprint exactly you will fail, because you will only be using technology he knew about in ways he thought of, but innovation requires using technology he didn't know about in ways he hadn't thought of.
Imagine if Edison had left a blueprint that was still followed exactly today, what sort of technology would we be using today? Vacuum tube radios and amplifiers, gramophones, incandescent lighting, sliderules, telephones required an operator to switch the call, long distance phone calls would have a constant background noise hiss and faintly in the background is someone else's conversation, twitter would be based on telegrams, Buzz Aldrin would have had to send a Morse code message saying back to earth saying Neil Armstrong was stepping onto the moon, the tallest building in the world would be the Empire State building, the most used camera would be a 35 mm, etc.


RE: Deeply amusing article
By tonyswash on 9/5/14, Rating: 0
RE: Deeply amusing article
By robinthakur on 9/5/2014 6:14:28 AM , Rating: 2
The article didn't seem very realistic to me other than being quite down on Apple at the very end of a product cycle. A one-day loss is a paper loss for most holders, and the characterisitic of the market Apple playas in is that it is news-driven. For many this drop is an opportunity to get on board. As an Android phone user currently, to me Apple is not where I'm looking at the moment, but that doesn't mean that everybody feels the same as me.

The sales rise of the iPhones in the previous quarter took me totally by surprise as I usually just read articles on here, which are generally Apple bashing, such as the one about Apple lowering orders from Samsung for Phone screens a few months back prompting (wildly incorrect) speculation that their sales were slowing on iPhones. That's just called Supply-chain management.

Apple's stock price has recently surpassed it's all time highs and then dropped a bit after Samsung's announcements recently, but that is what usually happens in the build-up to any Apple product announcement.

I didn't think Samsung knocked the ball out of the park with their recent announcements personally, not like they needed to. The Note 4 is disappointmently conservative and incrementally dull and the Alpha isn't even as powerful as the S5. The VR stuff was interesting, but not near to mass-marketable and the only vaguely interesting idea was the curved screen handset. Samsung's market is being taken apart by Xiaomi, Huawei and the rest and there are not many things particularly successful that they add to stock Android other than their S-Pen support. Certainly nothing at all when it comes to design, even Apple-copying Xiaomi has them beat, and its hard to market something as high-end that looks and feels so generic and cheap.

The buzz is certainly there for the iPhone 6 and I do think that alot of non techies will be lured back to a big screen premium iPhone. Using a rooted HTC One M8, I'm certainly tempted to go back to iPhone-land, although I like to play with Android from time to time. Apple was not the first to the MP3 party either, so I don't think a waiting approach on watches is a bad thing.

Get it wrong and you'd be in the same boat as Samsung which erodes consumer confidence in the underlying concept; Do you know anyone that owns a Galaxy Gear or any smart watch that didn't get it free with a phone? I certainly don't. If you want to see wearables (and NFC payments for that matter) done in a way that makes sense to the majority of non technical users, wait until Apple enters the market and watch it explode in popularity.


RE: Deeply amusing article
By w8gaming on 9/5/2014 9:24:57 AM , Rating: 2
Only if Apple willing to sell iWatch cheaply. Apple premium pricing strategy will never achieve market dominance. While a lot of fanboys here would think Apple is worth it for its quality, to most of the common people all around the world they are simply too expensive for their potential uses. If Apple wants to dominate the tech scene, they will have to learn to switch to market strategy like Samsung, several different models for different market segments with the mainstream product being very affordable.


RE: Deeply amusing article
By tonyswash on 9/5/2014 2:30:35 PM , Rating: 1
quote:
Only if Apple willing to sell iWatch cheaply.


Clearly you do not know what a Veblen good is. Here are some basics.

http://en.wikipedia.org/wiki/Veblen_good

Here is an analysis from Stratechery about the Veblen good phenomena and Apple's pricing strategy.

http://stratechery.com/2014/iphone-6-louis-vuitton...


RE: Deeply amusing article
By tonyswash on 9/5/14, Rating: 0
RE: Deeply amusing article
By Cheesew1z69 on 9/5/2014 2:44:30 PM , Rating: 2
quote:
feed their pathetic obsessions
How...ironic.


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