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Expect Signs Of Peak Smartphone From The Market Leaders Samsung And Apple As Competition Increases
Apple announces after the market close today. For my subscribers, I believe true valuation hovers around my base case scenario from the last Apple update. Of course, after we have crunched the numbers from this quarterly update we will have considerably more empirical data to munch on. As a quick review...
- Apple 3Q2013 Valuation Update - Retail
(Technology) - Apple 3Q2013 Valuation Update - Pro & Institutional
Apple's major problem is that the vast majority of its profits come from 2 products, both of which are rapidly losing market share and are outclassed by the competition in many different ways. On top of that, the competition is both undercutting on prices and outperforming on tech. That's a bad combination for a company that relies on fat margins to sustain their share price.
iPhone-5-vs-Galaxy-S4-Xperia-Z-Ultra
The mere diversity of the Android universe is a significant threat to Apple's margins. Check this out...
2 40
A water-proof phone must be corny, right?
I know, many will say.. "But, But this is tablet, not a phone!!!" Well, if that's the case, it competes mightily against both the iPad and the iPad mini (the mini hurts Apple's historical margins and the iPad is dropping in both ASP and market share like a rock). We all know what follows rapid market share loss, right?
In early 2010 I warned on Blackberry (then RIMM), with market share loss to Android being the prime determinant... Many More Black Eyes for the Blackberry? A Complete Forensic Analysis of Research in Motion. I put significant data out in the public domain to illustrate my point and put explicit price points out for subscribers, ie. RIM Smart Phone Market Share, RIP? Was I right?
Blackberry market share vs margin correlation analysisBlackberry market share vs margin correlation analysisBlackberry market share vs margin correlation analysis
Sony Xperia Z Ultra Apple Compare
The iPhone and the iPad business franchises are still making money hand over fist, but they are also losing market share and margin - and doing so quickly...
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The addition of (margin) mini products and iPhone 5Cs simply evidence what is obvious, the existence of products like those below are pressuing Apple and continue to eat at its hegemony...
11 xperia z ultra 271315438590382730
On top of the fact that Apple faces extreme compeition on all fronts, common business sense begs the question, Have We Reached "Peak Premium Smartphone"?
See also:
Is Tim Cook Cooked? Market Share vs Profit Margin, part 2 - Follow What I Do, Not What I Say!
- Here I go again – Hardware is Dead & Samsung Agrees
- When Berries Go Bad: BlackBerry to Slash Workforce by Up to 40% (As Predicted)
- Samsung Follows Footsteps Of Apple, HTC, Nokia - Wasn't That Quick?
- Looking Through Windows To See The Big Data On Fruit - Or Android Gets 'em Again
- iPad Shipments Decline As BoomBustBlog Time Machine Disrupts The Apple Reality Distortion Field Once Again
- Apple Bonds Proven To Have A Nasty Taste
- Angels, ArchAngels and Data Demons: The Smartphone Battle Is Officially Taken To The Cloud!
- Google Has Officially Gone On Record To Confirm Reggie Middleton's "Negative Margin Business Model" Tactics
- Blackberries, Apples & Fruit Borne Successitis - The Problem With Excess Profits Is Hubristic Management Tends To Take Eyes Off The Prize!!!
- Is It Time To Buy Apple As A Valuation Play? The Contrarian That Called The Top In Apple Weighs In
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People love to hate Sony for strange reasons that are the same reasons why they claim to love Apple.
Sony puts DRM in music.
What do you think iTunes is?
Sony stuff is cheap Chinese crap in a shiny package?
Really, what do you think Apple is?
Sony is just an emotionless multinational corporation.
Apple is different?
Sony's customer service is terrible.
Ever deal with a warranty claim if you didn't buy Applecare?
If you've ever taken apart a gadget, you'll find Sony products to be made at a much higher level of quality than anything Apple. Apple's individual components may be quality pieces, but the overall build quality and the parts that connect them are terrible. Macbook Pro motherboards are terrible, bad soldering, bad connections.
The new Experia phones are unbelievably good. The camera blows away the iPhone's, the screen is light years beyond Apple's and you can't beat the waterproofing. Sony's phones also survive drops that would leave an iPhone in hundreds of pieces.
Sony's designs are truly thought out. There are little things you might not ever notice that make the devices more usable. Like a slight lip on the screen edge that keeps the glass from sliding on a surface. Also putting on factory applied screen protector, instead of making you pay $30 for one.
Yes, Sony fluxless solder and thermal paste is the bomb.
Just ask the millions of first gen PS3 owners what a quality product they build. Or any of the Vaio laptop motherboard owners what a quality product Sony delivers. The leaking caps in those boards were the death of ten of thousands of laptops.
Bonzai!
point well taken, but you have a whole generation of non-thinking young adults, (and adults) who buy label/hype-not quality or performance. A tee shit cost 5 bucks, but Hollister tee shirt costs 30 and all kinds of morons and their moronic parents will pay for it. From my research, Blackberry is the best phone on the market. Reggievision may be inaccurate...lol! Let's find out what the big boys use for phones...we know, from ZH, that Merkel has a Blackberry. Wouldn't be suprised to see Lenovo buy out BBRY.
It also helps that Sony actually has their own display technology. I mean, scientists and labs working on LCD, OLED and other tech. Apple just buys from whoever will sell the part they want, cheapest.
The comoditization efforts should now focus on monitors. I don't want to pay $US 1500 for a nice photography monitor.....
Sony and Apple are both promoters of proprietary bullshit.
I avoid them like the plague.
Bose, Beats and Monster are also up there on the PT Barnum chart.
Sony has actually backed away form most of the proprietary stuff since Kaz Hirai took over. There isn't anything proprietary on the new phones or computers anymore. Even the new cameras take SD cards.
They even dropped the proprietary charging cable from the Vita.
Great,
Maybe they can restore the Install Other OS function on my PS3 that they took away with a firmware update.
Oh nevermind. The fucker overheated and got the YLOD.
Thanks for such a quality product Sony.
I avoided Sony stuff for a decade because of the memory stick. Good to know.
I bought a Nexus 4 for $250...does everything I need...nice gps for hiking....does Skype...it's even a phone.
I walked into this store in Macau earlier this week to see what this was. The model I looked at was priced at $115,000 HKD. Apparently there are Chinese high rollers who buy these things.
I know of another Company that makes US $100,000 high end amplifier sets.
What is the Chinese world coming to...
Put a damn shirt on, Reggie! ;)
He lost it shorting RCL.