My wife always makes fun of me because I often refer to people in the public sphere by their first name as if I know them personally. And I’ve had many conversations with her that started with a “Steve did it again”, and sometimes “I don’t know what Steve is thinking”. Of course, I’m speaking of Steve Jobs, the technology industry icon and a brilliant man. His death yesterday was striking, not because it was unexpected, but because of the unexpected effect it had on me. I cried. I felt the loss. And I’ve never met the man. Now I’ll never have the chance, but his influence will continue, long after his company and his name are forgotten. He was a pioneer, who has laid the foundation for the future of the human race. Rest in peace Steve.
I Call Bullshit
“Apple no longer has a leading edge, its cloud service is even behind Android; it can only sell on brand loyalty now,” Gartner analyst C.K. Lu told Reuters on Wednesday. “Users may wait to buy the next iPhone; if they can’t wait, they may shift to brands with more advanced specs.”
“We had expected the company to announce two new devices, an iPhone 5 and a 4-plus,” JP Morgan analyst Mark Moskowitz wrote in a note to investors. “We are disappointed that Apple did not introduce a thinner form factor, but we see the feature set improvements in the iPhone 4S and the broader pricing strategy as positives.”
I love analysts. Such stupidity and yet so many attentive ears. People wanted thinner Apple, you fucking idiots! Your doomed, doomed I say!
And the headline of this article is so trollish BGR.
Rumor Insanity!
Only one day until the Apple iPhone event. The rumors are flying fast and furious. But most of what’s out there is likely to be a pile of crap.
A new iPhone is the star of Apple’s Tuesday event, but at this point, it looks like we’ll be seeing more than one new phone. In fact, we may see as many as three.
I don’t know how to make this more clear: the chance of Apple announcing three iPhone models tomorrow are the same as Steve Job showing up at my house with a complimentary iPhone 5. Zilch. Zero. Not going to happen. Apple doesn’t like having a gagillion SKUs. And the idea that they will introduce a cheap, scaled down iPhone is just as ludicrous. Here’s what will happen. Apple will introduce a new iPhone model. They’ll call it something different than the iPhone 4 and it won’t matter if it’s iPhone 5 or iPhone 4s. And then Cupertino will drop the iPhone 4 price and sell that version as the entry level model.
Amazon vs. Apple in the Tablet Space
On the Amazon Kindle Fire
Research firm IHS offers a rundown of the device’s components on its site. Materials for the Kindle Fire, which retails for $199, cost $191.65, but with factory expenses, that comes to $209.63. However, despite the apparent loss, IHS estimates that Amazon is “likely to generate a marginal profit of $10″ on each Kindle Fire sold, when you take into account sales of digital content with the device.
Why this has to be repeated ad naseum I don’t know, but Amazon is a retailer. They sell stuff. Lots of stuff. They aren’t in the high margin game. Even if they do have an iPad level competitor in the pipeline, their strategy will diverge. Besides, there is room for more than one major tablet offering.
According to a bill of materials (BOM) analysis by Brian Marshall of BroadPoint AmTech, the cost of goods inside Apple ‘s 16GB WiFi-only iPad totals $270.50. That figure includes a $10 line item dedicated to manufacturing, but doesn’t include another $20 set aside for under-warranty service costs. Adding the latter makes Marshall’s bottom-line total $290.50.
That’s for the entry level WiFi only iPad. It’s a 42% margin. Apple makes its money on hardware and offers content as an incentive. Amazon makes its money on volume sales and offers cheap hardware as an incentive.
J.P.Morgan Doesn’t Like the Kindle Fire
JP Morgan executive director Mark Moskowitz is not impressed with Amazon’s first attempt in the tablet market. In a recent note to investors, Moskowitz said the tablet is just “noise,” and that it lacks too many features to be a valid competitor. “We are not impressed with Kindle Fire,” Moskowitz wrote. “In our view, [the Kindle Fire] is a stepping stone, at best, into the tablet market. We think that for any vendor to wrestle momentum from Apple, a fully-loaded offering is a must, and here, Kindle Fire falls short for now.”
Amazingly, Mr. Moskowitz has made the obvious observation, that the Amazon Kindle Fire is not an iPad competitor. Apparently, this is a bad thing. He’s looking for a blockbuster investment. I wouldn’t feel too bad for Mr. Moskowitz. His company sold a lot of mortgage backed securities.
Is This Why Apple is So Secretive?
Steve Jobs considers extreme secrecy a core principle of both Apple’s business and marketing strategy: The more the public is kept in the dark, feeding off the seemingly limitless Apple-rumor blogs and rags, the more consumers are likely to lust after Apple’s gizmos.
I don’t like to pick on the same organization twice in one day, but they just don’t get it. The secrecy feeds a small part of a much larger marketing strategy. Apple operates in a very competitive market and their specialty is design. Why would they want to give the competition a headstart copying Apple products? Or let the media tear them apart before they have a chance to tell consumers a compelling use and lifestyle story?
Recycling the same tired “get the fans in a frenzy with secrecy” story doesn’t make it any more true today than it did 5 years ago.
This Week’s Craplet: The AndyPad Pro
When reviewing an Android Tablet, the question to ask is “Why this device over another?” In this case, it’s because for the price of an iPad 2, you can have two £180 ($280) AndyPad Pros with enough change left over for a meal out.
So aside from the appeal of buying two turds instead of one iPad, what makes this a “pro” device? Right, the other version is for toddlers. In the early nineties, PC hardware makers were in a race to the bottom. History repeats itself occasionally.
Is Facebook Really Afraid of a Apple-Twitter Union? Not Likely
“If Twitter’s interactions are easier to use on an iPhone and iPad, then folks may prefer to use Twitter–especially since Twitter’s largely avoided the “invasion of privacy” bad press of Facebook.”
Twitter doesn’t have a privacy issue because it’s completely public. How does that beat Facebook on privacy? And of course, the most important aspect of any social web service is this: Are the people I care about (family, friends, fans, customers, etc) connected and active?
