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Who Are You Going To Believe, The Biased, Apple Adoring Press Or Your Lyin' Eyes????

Reggie Middleton's picture




 

 

I picked up an iPhone 5 to put it through its paces and found a few more RDF (reality distortion field)-powered myths to bust along the way. Now, this is a financial blog, not a tech blog, but I do analyze a lot of tech and there's a lot of non-sense out there in the tech blogs that culminate into inaccurate and simply wrong conclusions - nearly all of which end up worshipping Apple products when they are severaly outclassed by Android, et. l.

The press is all aglow with the iPhone's prowess - apparently forgetting that this is just catching up to last year's Android phones save processor speed. This is what the iPhone has going for it:

  • Speed - it's very fast. About as fast as a 1.6 ghx quad core Samsung chipped phone, give or take.
  • Speaker sound - the best I've seen (heard) on a phone.
  • Battery power - it seems quite frugal, but the screen is still so friggin' small the batter doesn't have many pixels to push!

The rest? I don't think it matches even last year's Samsung Galaxy S2, definitely not this year's and will likely pale to the 1080p phones to be announced next month and the Galaxy Note 2. Now to be fair, I've only spend a couple of hours with this device, but I will issue a more complete finding in the near future.

For those that are gushing over the camera, well below you will find a side by side comparison with the now soon to be obscelesced (next month) Samsung Galaxy Note. That's right, last years tech against the flagship released yesterday. This pick was taken at the outdoor seating of S.E.A. in the Meat Packing District in NYC at about 11 pm. Those who know the area know the lighting situation. Look at the pick (reduced overall size since the whole thing was over 5 megs and I don't want you guys crashing my server), and enlarge if you wish to search for artifacts, accuracy and noise. Click here to see the original photos in full size, which allows you to see the difference more starkly.

 

thumb BoomBustBlog Girls Smartphone Camera comparison copythumb BoomBustBlog Girls Smartphone Camera comparison copy

 

 

Remember, this is a comparison of the new iphone against the old Note. The new Note/S3 have a much faster processor which allows the camera software to be configured to do much more. Yet even with this antiquated hardware, the iPhone 5 pales signficantly. The difference is exacerbated when viewed on screen for the Note makes the iPhone screen look like a toy.

thumb 20120922 091840thumb 20120922 091840

 

In addition, the demand for the iPhone 5 was obviously significant. The issue is we will never know how significant because the perception of demand has been artificially stoked. Last week's initial thought's on the iPhone 5 announcements contained:

There’s no doubt that demand is extreme for the iPhone 5, but Tim Cook (CEO of Apple) is a supply chain guru by both training and experience. I find it absolutely untenable that Cook cannot forecast demand for his main product and primary cash cow better than that. This is the 5th or 6th iteration of the most important device that Apple sells, and a supply chain whiz can’t avoid  sellout on the first day???!!! Come now.

A supposed insider going by "Dry Throat" allegedly corroborated my thoughts, as reported by the UK Register, theregister.co.uk/.../... (h/t BoomBustBlogger Simon Yohan):

Quote:

In a revelation that seems set to shake the technology world to its very foundations, a clandestine Register source has informed us that secretive shiny-stuff behemoth Apple could easily supply more than enough iPhone 5s to meet initial demand: but that it deliberately chose not to. Our source, known to us only by the codename "Dry Throat", claims to have enjoyed a high level of access to the decision-making process within the mighty gizmo-peddling operation in the run-up to last week's earth-shattering handset announcement. "Cook and all the top boys were worried," Dry Throat told his Reg handlers, referring to Apple supremo Tim Cook. "I mean, think about it. There's no Steve: that's not good. How the hell are you supposed to get mass cult hysteria going without the Grand High Warlock? "Then, look at the damn thing. It's basically a dead ringer for an old Samsung Galaxy, but with a smaller screen. And we really shot ourselves in the foot with 4G. It's a massive power gobbler - and that's going to kind of flag up the fact that we're the only guys who don't let you swap batteries ... basically because we're really insanely greedy.

"So we're left with Mr Dull from Accounts giving a pitch which says 'Hey guys, why don't you buy a Samsung Galaxy, except double price and with really bad battery life and no option to change batteries. Oh, and it costs more. And if you want it with an SD card, you have to buy one built in from us at like five times retail price, and we've chosen not to use an industry standard connector ... basically out of uncontrollable greed, again'

... "Don't let anyone have many," he said. "That way you're not saying, 'hey, buy our mediocre and really expensive offering'. You're saying, 'see this? Over here? Where everyone else is looking? You can't have this'.

"That way if you do get hold of one, you feel really pleased regardless of the fact it's not much good. And if you can't get one, you really want one. It's so simple - but so effective."

Quote:

"Come off it, like they couldn't have millions of the damn things ready in advance and just deliver them to the shops - of course they could, people do it all the time with normal products. But if you could just buy one straight off, it wouldn't be special any more, would it? It's not special in itself, it hasn't got anything the others haven't got. If a lot of people actually had one early on, even fanboys might just realise that. "As for 'shipping dates have moved back two weeks', don't make me laugh. They were probably sitting there in Cupertino saying 'Huh, nobody's buying it - move back shipping dates by a week, that'll get things moving'. In reality there are probably warehouses stuffed full of the damn things all over the world. Sure, your iPhone 'just left China' ... come on. It's been sitting in a warehouse round the corner for a fortnight while you were shivering in the queue outside the Apple Store like a chump. There are Apple guys rubbing handfuls of iPhone 5s against their naked bodies, using them as paperweights, playing iPhone 5 Jenga - while you're standing outside the shop with your nose pressed against the window, you simp. "I mean, what's next? 'Track the parts of your iPhone, watch as they come together in Shenzhen? Look, it's nearly assembled now - but, o noes! The unpaid slave intern has dropped it and cracked the case - track the replacement case as it moves to the factory by water buffalo ... track the worker as he reports to the motivational centre for corrective electroshock training' "Some people will believe anything."

Well, my visit to the Apple store pretty much said the same. I went by the Grand Central store in NYC about 5 pm, there was no line at all! This lady and I sat there alone talking to the gatekeeper with the tickets. I went to the 24 hour flagship store on 5th and Central Park South, and there was about a 20-30 minute line.

 thumb IMG 20120921 190223thumb IMG 20120921 190223

There was also a catch that plays well to the type of demographic that buys these overpriced products. You see, in the pic above, the Apple employees had you take an iPhone 5 inventory ticket and wait on line outside. Being who I am, I simply took a ticket and went in the store to buy the product, skipping the line outside. After getting in, I found that there was absolutely no line at the register to buy the iPhone and there were about 20 cashiers working. In addition, the store (5th ave, NYC) was not nearly as busy as usual, although there were a lot of people playing with the new iPhones. You see, the perception of a long wait was created, but all they had to do was to let the people walk in, they would have gotten their phones like me (it took me about 80 seconds) and walk back out. 

Reggie has busted that Apple long line wait conspiracy, eh?

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Mon, 09/24/2012 - 19:59 | 2826358 notadouche
notadouche's picture

Like a broken clock, Reggie, you will be right sometime and you can claim you were early, declare victory and depart the field.  You've been "suspecting the zenith" and fall of Apple since the stock was at 190.  One day you will be right so you might as well keep it up.  And it's a good strategy as the higher Apple climbs the farther and faster one day it will inevitably fall.  Of course I'd hate to be short for as long as you have been touting the Apple downfall.  

 

Mon, 09/24/2012 - 21:05 | 2826546 Zer0head
Zer0head's picture

Douche, you give the R man too much credit.

Being correct twice a day in this business would make you more powerful than the Barnank.  Once a week and you're golden. Reggie is correct more often than not and for most that is something to aspire to.

Mon, 09/24/2012 - 19:48 | 2826319 HowardBeale
HowardBeale's picture

It will be quite a day when the general population realizes they have been a victim of a brilliant marketing scheme and they turn on Apple: there will be as much joy in bad-mouthing the company then as there is in belonging to the idiots' club now...

It's a comin'...

Mon, 09/24/2012 - 19:44 | 2826308 Zer0head
Zer0head's picture

The photo image comparing the two is accurate, but why not just put iPhone next to a Galaxy tablet. The problem I have with the Galaxy III is that it is a big emeffer, like having half an ipad in you pocket.  iPhone is lighter and thinner though the droid os is preferable.

Mon, 09/24/2012 - 19:19 | 2826220 Unbezahlbar
Unbezahlbar's picture

I remember Lucent soared to 70...and then fell to 9. It was the most widel yheld stock by Congress...at one time.

 

Marketing is a very powerful tool.

Mon, 09/24/2012 - 18:42 | 2826071 Remington IV
Remington IV's picture

Those two ho's look better in the dark

Mon, 09/24/2012 - 17:19 | 2825823 Pseudolus
Pseudolus's picture

Reggie, meet Rabbit

Mon, 09/24/2012 - 17:13 | 2825802 rsnoble
rsnoble's picture

Of course it's going to pale to the 1080 p enter Iphone 6.  These fucking pieces of shit are worse than driving a new car off the lot.

Mon, 09/24/2012 - 17:04 | 2825770 ubercool
ubercool's picture

Reggie, your highly transparent anti-Apple bias is unbecoming of a supposedly unbiased analyst. Your entire analysis is colored by your pre-conceived notions, and it shows.

Mon, 09/24/2012 - 16:57 | 2825752 NoWayJose
NoWayJose's picture

Steve Jobs would have had the iPhone 5 released last year, and would never have done the iPhone 4s.  The iPhone 5 would have looked great - last year, and the iPhone 6 should have come out this year with an even bigger screen.  Apple is now one year behind Samsung and in danger of falling even further behind.

Mon, 09/24/2012 - 16:54 | 2825743 muppet_master
muppet_master's picture

mainstream media = full of IT !!

aapl is a massive panic SHORT SELL @ $700...its now @ $690 or so...SELL NOW !!!

Mon, 09/24/2012 - 16:37 | 2825681 Zero Govt
Zero Govt's picture

How did you manage to take such a crap photo Reggie?

My GF's iPhone4 takes amazing photos, it even beats our supposedtly superior digital camera. The only time we've managed to over-expose a picture like yours was facing a lazer show the other night at a big club

every other has been picture perfect, colours are amazing

how long to get served if the cue was inside BTW and you hadn't jumped it? Ever seen a cue for Android, bloody hell GOOfball has to give their copy-cat junk away

you really are crap and not suited to Apple at all old bean. Can't you bore your subscribers with your constant bias and whining?

Mon, 09/24/2012 - 16:27 | 2825647 mm17101978
mm17101978's picture

Good to see some owners of Android phones on this great website. Apple is impossible to like, given that they sue everything and everyone to try to pump up more profits. Their stock price is ridiculous, given the lack of innovation on its only two products (aside from the screen but only to a certain extent as Reggie demonstrated very well). As a proud owner for business reasons of an S2, a Galaxy Note and an S3, after selling two iPhone 4 (received as gifts), I am now ready to sell two iPads 1 (also received as gifts) to buy a Galaxy Note 10.1 and I will also upgrade to a Galaxy Note 2. I find Asian companies so forward looking compared to Apple not to mention that Asia gets it, as far as PMs and preservation of wealth.

 

Best regards.....oh let me go back to #boycottapple on Google+ :) ;)

Mon, 09/24/2012 - 16:01 | 2825555 John1950
John1950's picture

Yes the Samsung looks nice.

But my iphone 3gs is still working after just over 2 years.

And so are loads of other peoples.

I may look at an iphone 4s later in the year.....that will probably last years as well.

Nokia, samsung et-al: eat your hearts out.

Mon, 09/24/2012 - 15:27 | 2825427 Tango in the Blight
Tango in the Blight's picture

I'm not getting rid of my Samsung Galaxy S2 yet. I read ZeroHedge on it when I wake up in the morning. The screen is big enough to read the site comfortably. The battery lasts a full day even with WIFI enabled. Won't be getting an iPhone 5 and don't need no steenking iPad either. Love that I can fit it in my pocket and still browse regular sites instead of the mobile versions.

Mon, 09/24/2012 - 15:49 | 2825516 Skateboarder
Skateboarder's picture

Reading a mobile version of a site is like taking a shit in an airplane.

Mon, 09/24/2012 - 19:51 | 2826331 MaxFrost
MaxFrost's picture

I work in web dev in Silicon Valley. My company (and everybody else) desperately trying to figure out mobile. You sir, are a genius...

Mon, 09/24/2012 - 15:23 | 2825409 Meesohaawnee
Meesohaawnee's picture

is it "biased" or "paid off"??

Mon, 09/24/2012 - 15:11 | 2825354 ebworthen
ebworthen's picture

Any Apple investor or booster has to remind themselves every morning of this fact:

"Steve Jobs has passed on."

Jobs was the only reason Apple didn't die in the 90's, and the only reason for their meteoric rise.

I know there are other talented people there, but they are not the Mozart of Cupertino and never will be.

Mon, 09/24/2012 - 14:48 | 2825272 blueRidgeBoy
blueRidgeBoy's picture

so tiresome

Mon, 09/24/2012 - 13:55 | 2825092 Mr_Wonderful
Mr_Wonderful's picture

The market seems staggeringly overbought to say the least.

76% of stocks are above the 50 day SMA and 70% above the 200 day SMA.

Mon, 09/24/2012 - 15:16 | 2825382 ebworthen
ebworthen's picture

Apple up 70% in one year, the year in which the seminal founder and genius innovator passed on.

That in itself is scary for the NASDAQ, and more so Apple investors (or should be).

You are right, whole market high on FED cotton candy and Ritalin.

Mon, 09/24/2012 - 14:04 | 2825084 css1971
css1971's picture

Reggie, the problem for handset manufacturers is commoditisation. How do they compete against cheap Chinese knockoffs by for example Huawei?

Samsung don't own the platform or any services on the platform, they can be replaced in 5 minutes. This is a big problem for them whether they know it or not. The love affair between Google and Samsung will only go so far and Google's future in mobile phones may be less bright than you might imagine.

Mon, 09/24/2012 - 13:53 | 2825078 Lokking4AnEdge
Lokking4AnEdge's picture

Reggie,

WHat's the word with "PEI"??

They managed to re-finance and the stock is up sharply....

Thanks

Mon, 09/24/2012 - 13:44 | 2825036 GottaBKiddn
GottaBKiddn's picture

 

"The worms crawl in, the worms crawl out........"

Mon, 09/24/2012 - 13:36 | 2824996 Centauri
Centauri's picture

I note ol' Reg does not actually make a call. Just blathering on about nonsense, and when AAPL hits $800 he'll reply that he never said the company would actually be impacted by all the negative trends he highlights. 

Over the last 2 years Reg has been running this diatribe, Goog is up about 50% - nice. And of course AAPL is up about 130% over the same period. Nice work, Reg!

Mon, 09/24/2012 - 13:05 | 2824860 Lost Wages
Lost Wages's picture

I'm holding out for Google Glasses so I can out-douchebag everyone else.

Mon, 09/24/2012 - 12:39 | 2824716 obewon
obewon's picture

Reggie:

Tnks for "telling it as it truly is!!!"

I had a Galaxy S2 and upgraded to the Galaxy S3 two months ago. The S2 has some features that are superior to the iPhone 5, and the S3 is far superior in almost all categories. The iPhone is simply a status item, period!

Mon, 09/24/2012 - 12:39 | 2824711 obewon
obewon's picture

Reggie:

 

Tnks for "telling it as it truly is!!!"

I had a Galaxy S2 and upgraded to the Galaxy S3 two months ago.

The S2 has some features that are superior to the iPhone 5, and the S3 is far superior in almost all categories. The iPhone is simply a status item, period!

 

obe

Mon, 09/24/2012 - 12:35 | 2824706 hannah
hannah's picture

 

it's reggie or is it...?

it's 'blackwolf the dragonmaster'....LOL.....! PLEASE TELL US HOW TO TURN LEAD(or aapl?) INTO GOLD DRAGONMASTER.

 

http://www.slashfilm.com/wp/wp-content/images/blackwolfvotd.jpg

Mon, 09/24/2012 - 12:02 | 2824573 Winston Smith 2009
Winston Smith 2009's picture

I agree with all of your other complaints about this overpriced status seeking device, but "will likely pale to the 1080p phones to be announced next month" is going a bit far.  I suspect resolutions greater than 720p on such small LCDs would be indistinguishable from 720p.

Mon, 09/24/2012 - 11:53 | 2824523 PTDBDucks
PTDBDucks's picture

Why are the Apple new products always featured on the news? They shouldn't be given top billing over world news events. This free advertsing always bugs me. When a a new model fridge or stove comes out, it isn't fawned over like the Apple crap.

Mon, 09/24/2012 - 13:37 | 2825006 laomei
laomei's picture

It's because all the hedge funds are loaded in deep with apple stock, the interests are mutual and they want to ensure free advertising for their cash cow.  Give me government-controlled news any day, better than the corporate-controlled garbage.

Mon, 09/24/2012 - 11:25 | 2824405 dlmaniac
dlmaniac's picture

I'm getting a Nok920 instead.

Mon, 09/24/2012 - 10:45 | 2824236 fredquimby
fredquimby's picture

So they did a new Range Rover/Victoria Beckham in other words?!!

i.e tell everyone that VB designed the interior, everyone rightly thinks it will be the shitest car ever made, get in one and you are, against all odds, mightly impressed.

Under promise, over deliver....... the only way be a success in sales!!

Mon, 09/24/2012 - 10:35 | 2824212 Kina
Kina's picture

Galaxy Note is great, had it since November last year, just about to upgrade to the latest.

 

Yeh, apple chasin someone elses tail. Is why they to need litigate everybody to death, give them time to keep catchin up.

 

Apple = iRectum

 

And their great profits, that the US courts and local iFan juries protect.... go to create employment everywhere else, except the US.

Mon, 09/24/2012 - 10:30 | 2824199 Ying-Yang
Ying-Yang's picture

Reggie poke around the story of Fox Conn selling customer direct from some of their factories. Anything to this?

Mon, 09/24/2012 - 13:12 | 2824877 flattrader
flattrader's picture

Similar thing happening with tablets.

http://venturebeat.com/2012/09/15/hardware-is-dead/

>>>...

The truth is that if your company sells hardware today, your business model is essentially over. No one can make money selling hardware when faced with the cold hard truth of a $45 computer that is already shipping in volume.

My contacts in the supply chain tell me they expect these devices to ship 20 million to 40 million units this year. Most of these designs are powered by a processor from a company that is not known outside China — All Winner. As a result, we have heard the tablets referred to as “A-Pads.”

When I show this tablet to people in the industry, they have universally shared my shock. And then they always ask “Who made it?.” My stock answer is “Who cares?” But the truth of it is that I do not know. There was no brand on the box or on the device. I have combed some of the internal documentation and cannot find an answer. This is how far the Shenzhen electronics complex has evolved. The hardware maker literally does not matter. Contract manufacturers can download a reference design from the chip maker and build to suit customer orders. If I had 20,000 friends and an easy way to import these into the US, I would put my own name on it and hand them out as a business cards or Chanukah gifts.

I think this leads to an important conclusion: No one can make money selling hardware anymore. The only way to make money with hardware is to sell something else and get consumers to pay for the whole device and experience...<<<

How long can Apple keep doing what is in that last sentence...to a increasingly strapped and declioning American middle-class???  How long will Americans fall for it???

 

Mon, 09/24/2012 - 14:10 | 2825160 css1971
css1971's picture

You just made my point about Samsung. They're dead.

Mon, 09/24/2012 - 13:39 | 2825010 laomei
laomei's picture

Fry's selling it for $80. Sells in China for $45 retail. Typical really, greedy shits jacking up the price just because they can. For bulk they can be had for around $25 for the basic model. Seriously, if Taobao got the balls to enter into the US market, and hook up alipay, that would be the end of B&M stores and paypal.

Mon, 09/24/2012 - 15:26 | 2825327 flattrader
flattrader's picture

I have been looking at 9.7 inch tablets at Light in the Box dot com running Android ICS 4.0

The one I want is out of stock.  A friend got one and let me play with it for a few hours.  At $239.99 I can forego the icrap experience.

If you are willing to squint at a 7 inch screen, you have even more options at a lower price.

Check specs and reviews to see if they have what you need and want and you can get over pretty cheaply.

I don't see how Apple survives this.

This was an ineresting read too.

http://venturebeat.com/2012/09/08/why-amazon-apple-tablet-releases-wont-...

Written several weeks ago.  We are just about there based on some of the 7 inch tablet prices I've seen.  Perhaps by Christmas.

Mon, 09/24/2012 - 13:26 | 2824857 flattrader
flattrader's picture

Double post.  Ooops...

Mon, 09/24/2012 - 10:25 | 2824180 diogeneslaertius
diogeneslaertius's picture

the real story?

how shitty hardware is writing the playbook for Software i.e. flash vs html5 etc.

fuck apple and fuck apple user, take your gimped version of unix for dummies and all of your consoles pretending to be computing devices and go wash stallman's balls, its like you people WANT TO BE SLAVES FFS 

Mon, 09/24/2012 - 10:23 | 2824170 williambanzai7
williambanzai7's picture

Check out iReggie: http://vimeo.com/26656819

Mon, 09/24/2012 - 10:28 | 2824191 diogeneslaertius
diogeneslaertius's picture

digital kismet and smelting zohar sir as usual

Mon, 09/24/2012 - 10:23 | 2824164 diogeneslaertius
diogeneslaertius's picture

Reggie Motherfucking Middleton Baby Yeah!

meanwhile at Foxconn in China ...

 

http://farm9.staticflickr.com/8309/8017870061_26cd19ef07_b.jpg

 

enjoy the fake-ass tricorders all you incredibly hip and trendy people

Mon, 09/24/2012 - 10:22 | 2824163 jimijon
jimijon's picture

Here we go again... all the fandroids bash the fanboys and visa versa. All pure emotion and certainly all tree and no forest.

1) Apple unveiled its first processor and it rocks. 

2) Apple cut out Google Maps... soon Windows will follow.

3) Personally, I don't like the S3 size for a phone. For a smart device it is great.

4) Apple is winning the marketing war again. Remember the all adage, All news is good news!

And you know what? The phone works great, sounds great, and connects to a great ecosystem. And that my friend is good enough for 80% of the world. And if Apple ever gets another 1 or 2% follow through to more sales of MacBook Airs, Pros, and then a refreshed pro line, and oh a much better new iPad and good ol' Apple will be again the highlight of the media.

Anyway, I think I have been following Reggies rant on Apple from about $300 dollars a share.  'nough said.

Mon, 09/24/2012 - 11:28 | 2824416 Meesohaawnee
Meesohaawnee's picture

100 or 800. the bottom line is its a product that has in effect dumbed down a whole generation. Its  a brilliant business model. Make a product that assists people in tending to their natural human insecurities. The fact that 90% of the population are just 4 legged hooved animals needing to know the other fellow brainless cattle  is right near. I loath the day "smart phones" were invented. Actually they are anything but "smart".nough said

Mon, 09/24/2012 - 19:09 | 2826184 Parrotile
Parrotile's picture

Well in my experience the invention of the "Smart Phone" has certainly led to the death of polite (or in fact any) conversation. I work part time in Healthcare, and during my occasional forays to the "Staff Room" the occupants are always (and I DO mean ALWAYS) playing with their devices. There is NO conversation (except the occasional snippet related to something just downloaded), and forget anything important - our Department employs 120, and I'm the ONLY ONE who visits ANY finance / alternative finance blog sites.

The absolute lack of any critical thought processes, and firm belief in the "Evertything's just fine and the "Experts" will keep it that way" mantra bodes very badly for the future.

Mon, 09/24/2012 - 18:04 | 2825962 jimijon
jimijon's picture

Face it. Apple invented the smart phone as we know it today. And has created a maelstrom of true democracy to boot.

So, Apple has helped the Internet Reformation immensely. So, my dumb down, when the whole Internet is in your pocket only you can be dumb to think this will dumb people down. Do you even have kids?

Anddd.. what is different between a fanboy and fandroid? Really I see none. Who is following who?

Come on, for twenty years everyone mocked Apple and followed like sheep because everyone uses Microsoft. So who were the sheep then? This has become totally juvenile and losing site of what makes a company successful.

However, with Facebook still growing, Apple canning Google, Microsoft canning Google and soon, other Chinese OS's will... oooops sorry, it seems like Google will sue you if you try to use a different OS.

You guys (don't see many gals in these discussions) are truly brainwashed into a Red / Blue paradigm. 

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