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Sadly, that man is dead. The accountant they have running things now is very good at making money, but not very good at creating new products. They are already
by bodas 8y ago
Sadly, that man is dead. The accountant they have running things now is very good at making money, but not very good at creating new products. They are already selling $999 phones, it's hard to see how he can squeeze any more money out of the iPhone.
- social_quotient 8y agoI think it’s why they are attacking the entire vertical for where that 999 goes https://www.eetimes.com/document.asp?doc_id=1333633 https://www.eetimes.com/document.asp?doc_id=1333633
- samfisher83 8y agoThey can charge 1100 for the phone. Their revenues went up not because they are selling more phones, but Average Selling Price went up. If people are willing to pay 1k why not 1.1 or 1.2. At some point people will stop, but you can find the price point that maximizes profit.
- skookumchuck 8y agoThe higher Apple prices things, the more viable their competitors become.
- reaperducer 8y agoYou would think. But it seems like when Apple raises prices, especially on the iPhone, it just gives the competitors permission to do the same thing.
- coldtea 8y agoActually that has never been the case. Among other things, people buy Apple so that they won't be seen buying something more viable.
- scarface74 8y agoSo exactly what in the foreseeable future is going to be more impactful than the cellphone (not necessarily the iPhone)? What other product is owned by close to 2/3rds of the worlds population and growing? (https://www.statista.com/statistics/274774/forecast-of-mobile-phone-users-worldwide/ https://www.statista.com/statistics/274774/forecast-of-mobil...) What other consumer electronics company is doing anything innovative?
- stale2002 8y agoIt has nothing to do with apple being better or worse than other consumer electronics company. It instead has everything to do with the fact that high end consumer electronics is only so big of a market, and is one that Apple has almost entirely tapped out. Apple won the market, overwhelmingly so. But they can't win twice as hard, when they've won already as much as they can.
- scarface74 8y agoI agree and this is already priced in as well as the expectation of dividends They are trading at a much lower multiple than the other tech companies.
- nradov 8y agoMany investors expect augmented reality to eventually have as much impact as smartphones. That may not be realistic, but the current Apple valuation is at least partly based on the expectation that it will eventually become an AR market leader.
- scarface74 8y agoDoes anyone expect 2/3rds of the world to be using AR/VR?
- nradov 8y agoPerhaps so, if someone can figure out how to integrate a high quality AR display into something that looks like a regular pair of eyeglasses / sunglasses. But the technical challenges are huge and I expect that will take decades.
- coldtea 8y ago>They are already selling $999 phones, it's hard to see how he can squeeze any more money out of the iPhone. Several ways. They're actively looking into health sensor integration, with third party (and their own) devices, medical records, and with the Apple Watch as a continuous sensor. That's a huge market, even more lucrative than smartphones. Second, they're better poised than anybody in this IoT thing, with their home automation platform. Third, they are entering the living room, starting with the speakers, tv, etc. When they get serious with this (especially since they also combine it with their home automation) they'll have another nice market to tap. Fourth, they've long since licensed Car Play, and they also have their own autonomous car project under continuous development. Whether in partnership with a car company or on their own, they can do quite well with e.g. their own electric city car. Fifth, they also work heavily (and have made acquisitions etc) in AR / VR technology. If they put out some device, it wont be a prototype for enthusiasts like the one's we've seen, it will sell like crazy.