Source: Business Wire
quote: Apple is competing against Samsung and * every other company that produces Android devices *.
quote: Apple's relative performance against just one other company says next to nothing about the overall competitive landscape in the marketplace.
quote: I'd say Apple is doing very well in the competitive landscape considering they only sell phones for $450 and up.
quote: And yet... I haven't seen anything bad happen to Apple as a result.
quote: The current meme is that Apple MUST abandon their skimming strategy and pursue a price penetration strategy instead. However, the facts simply do not support this contention. Apple could, of course, “buy” more market share simply by lowering their prices, but this has two major disadvantages. First, the market share that they would be buying is worth far less than the market share that they already own. Second, a lower price would lead to lower profits as well. It is obvious – or rather it SHOULD be obvious – that this could be counter-productive.There’s nothing wrong with market share and I’m quite certain that Apple would be more than happy to expand their market share – but not at any price. For example, Apple has some 70% market share in iPods and around 50% market share in iPads. Yet they are doing this while still maintaining their price skimming strategy.Price skimming is neither the only strategy nor is it the only superior strategy. It is just one of many marketing strategies. However, Apple is executing the strategy of price skimming brilliantly…even if Wall Street and the pundits stubbornly refuse to acknowledge it.
quote: Apple could, of course, “buy” more market share simply by lowering their prices, but this has two major disadvantages. First, the market share that they would be buying is worth far less than the market share that they already own. Second, a lower price would lead to lower profits as well.
quote: You mean like the one where you imagine everything as a threat and you perceive anyone with anything bad to say about Apple as saying they are "doomed" and "failing"? No one says anything like that. All anyone is saying is that the free ride is over and now they are going to have to work for it.
quote: IOS so so... vanilla
quote: - Multi user support
quote: - Active stylus support (who wants a stylus to lose) - 10 10 million and counting.
quote: As of now, of the 4 major smartphone OS's (IOS6, Android4.2 , WP8 and B10) IOS is in last place.
quote: The problem for Apple is not that its business is collapsing. Indeed, the projected revenues of $41 to $43 billion Apple offered analysts in its quarterly guidance would represent another record second quarter for the company.Rather, it's what analysts call a "tough compare" in terms of gross margins -- a measure of the efficiency with which a company turns revenue into profits. Last year at this time Apple's gross margin peaked at an extraordinary 47.37%. This year, following the introduction of a slew of new products -- including new Macs, iPhones and iPads -- it is projecting gross margins somewhere between 37.5% and 38.5%. That's what's driving the income down. Wall Street seems to be betting that in the next six to 12 months, those numbers have nowhere to go but up.
quote: Hon Hai Precision Industry Co Ltd (????) shares surged to more than a one-month high yesterday after the company reported record-breaking quarterly net profits due to improved prices and production yield for Apple Inc’s new iPhones and iPad Mini tablets....The strong quarterly net profit was primarily driven by “higher selling prices for new products and improved production yield,” Daiwa Capital Markets analyst Birdy Lu (???) said, adding that Hon Hai chairman and chief executive Terry Gou (???) has said the iPhone 5 was the most difficult product to produce among Apple’s iPhone series. “Hon Hai has raised its prices for making the iPhone 5 and the iPad Mini,” Lu said. Better selling prices and a higher yield helped boosted Hon Hai’s gross margin to its highest in three years at 9.58 percent last quarter, up from 8.89 percent the previous year and 9.54 percent in the third quarter of last year, Lu said.