“Lazard Capital Markets‘s Edward Parker [on Thursday] initiated coverage of Apple with a Buy rating and a $540 price target, arguing the Street has its conception of the company all wrong, that it is in fact a ‘storage’ company whose appeal is closer to that of EMC and NetApp than to that of Nokia and BlackBerry), as he puts it,” Tiernan Ray reports for Barron’s. “Parker argues that while people fret about the waning influence of late founder Steve Jobs, investors would do better to focus on ‘an alternative analytical framework that goes beyond addressing Apple’s product elegance and ecosystem lock-in will become increasingly more useful and insightful.'”
Ray reports, “Apple’s focus on utility gives it an economic advantage over Samsung much like Starbucks versus store-bought coffee: ‘Not everyone can charge $2.00 for a 12 oz. cup of coffee if one business model rests on attracting customers to sit in a café while another rests on selling coffee beans over the Internet so a customer can make coffee cheaply at home. Ask Starbucks. Then ask Folgers. Nor can everyone charge $1.00 per GB of HDD storage capacity if one business model rests on protecting and managing valuable corporate data while another rests on providing storage capacity alone. Ask EMC. Then ask Seagate.'”
Much more in the full article here.
But Folger’s didn’t steal recipes from Starbucks.
Hahahah! Borvo!! infinity!
wise and straight to the point, comment – bingo
Samsung partnered with Apple. A win win situation.
Later, Samsung sees the potential of competing with Apple by using Googles’ open source Android. An easy path to take without the need to create an OS, but furthermore, knowing what was under the hood of iPhone – Samsung dared to risk its partnership. And sell a phone at equal price. Apple offered licensing iOS to Samsung.
Samsung decided against the offer and continually, with intent to mimics Apple as closely as it could. For as long as possible.
With the sales of low end and higher end handsets; mainly to telecom companies who offer next to nothing phones yet long term contracts – Samsung is seen as dominating the market.
The real problem is not Samsung but Googles’ Android. Apple still needs to nuke this OS off the planet. Unlike, Google giving it all away for nothing but data mining. It is Android itself which has greatly infringed the IP of iOS. Without it, competitors like HTC, LG and Samsung would have failed in the same manner as Nokia, Rim and Windows.
And, lets remember that Apple & iOS are American. A home-brewed company, that outsources to keep manufacturing cost lower but strive for high profits to maintain quality, remain innovative and respectfully keeping its customers secure. WHat company today does not practice business this way?
Good points. But I will correct one fallacy:
Samsung sees the potential of competing with Apple by using Googles’ open source Android
1) Using Android does NOT ‘compete’ with Apple. It RIPS OFF APPLE. The Google transformation of the original Android OS was ENTIRELY an effort to IMITATE iOS. Nothing more. That’s parasitism. It is NOT ‘competition’ and never will be.
2) Android OS makes a JOKE of the term ‘open source’. Android OS is, in fact, NOT open source. It is ENTIRELY under the control of Google, NOT anyone else or a collective of contributors. Google CONSISTENTLY HIDES ANDROID CODE from the Android project and refuses to make it public. That, by definition, is PROPRIETARY software, never open source. Let’s get that clear.
It’s called Google EVIL.
understood and agreed, Derek — as stated:
WaterFalls2013
Friday, April 5, 2013 – 1:41 pm
Again, Android is the problem.
That OS, should never have been allowed to copy iOS regarding functionality, feel nor be given away freely to a partner of Apple under contracted to build phones. That’s illegal competition.
Android copied Apple with a virtual keyboard, with similar touch gestures — like swipe and pinch and has been marketing and setting up online store to further imitate Apple.
Certainly, there is a line of ancestry in smart phone GUIs that even Apple has followed. The Palm OS most certainly provided a template for the look of iOS. I’ve used both. However, BOTH OSes owe a major nod to the pioneer in the field, that being the Newton OS by Apple.
I like your point about Android being freely handed over (not as actual open source, but freely given nonetheless) to Apple’s competitors, or at least wannabe competitors. Pure Google evil.
I champion competition in business as it’s good for everyone concerned. But ripping off Apple and handing over the result to Apple competitors will always be a parasitic move, not a competitive move. I’d go so far as to call it a desperate move, because no other company has had the creativity (apart from RIM/Blackberry) to come out with something innovative enough to actually be different from Apple. I know there are some other OSes on the sidelines that have not been hits, like Windows Phone 8 and Web OS. I’d much rather those OSes were successful enough to know lousy ripoff Android out of the picture. That would be real competition. Sadly, the current outsider OSes require some maturity and/or catchup. It could happen!
No, but there is some convergence. See Folgers “Gourmet Selections” vs. Starbucks Coffee Pods competing for the high end home market.
Gourmet Selections:
http://www.slashfood.com/2006/08/26/folgers-launches-gourmet-blends/
Coffee Pods:
http://www.starbucksstore.com/verismo/verismo-pods,default,sc.html
Folger’s came first; then Starbucks.
Not quite the same thing.
but folgers changed their products look and taste to make it imitate starbucks!!!
Samsung was founded in 1938.
hey – don’t be misleading here…
– in 1938 it was a trading company.
– by 1958, Samsung traded clothing, insurance and food processing methods
– not until the late 60’s did Samsung start with electronics, construction and ship building
– since the 90’s Samsung pressed deeper with electronics – particular in mobile phones
– today it is considered the world largest electronics co
Apple was founded on April 1, 1976.
the two companies were doing completely different things regarding electronics.
Apple was developing software (a OS) to run its uniquely flavoured hardware… Apple to this day still REMAINS FAITHFUL to what it was created from its founding day. And it has made a profound difference on the world.
Sorry I can not say the same for Samsung.
BTW – who picked SAMSUNG to partner with for the iPhone?
Tim Cook? Enough said, though the right choice at the time he should have been fired later on for it.
Sorry, I don’t know.
And that has nothing to do with ‘Folgers or Starbucks’.
Again, Android is the problem.
That OS, should never have been allowed to copy iOS regarding functionality, feel nor be given away freely to a partner of Apple under contracted to build phones. That’s illegal competition.
Android copied Apple with a virtual keyboard, with similar touch gestures — like swipe and pinch and has been marketing and setting up online store to further imitate Apple.
He should have been fired later on because Samsung changed their ways? I pity anyone who might ever have to work for you.
Oh please, Samsung was picked by Tim for supply and process reasons. Tim had no foresight in that Samsung would back stab Apple… but everyone in the global tech sector knew what Samsung has been capable of in the past.
Samsung has been stealing concepts and designs and technology from the Japanese and Chinese far before Apple partnered with them. So, it was a risk Apple wished to take… a bad one. Tims’ decision mainly from his past experience.
Sorry, Jim you would never have the opportunity to work beside, under or over me. Simply because you lack vision and wisdom to see beyond these matters; short sighted perhaps? Whatever, you just don’t qualify to be in my company. That means standing even ten feet near me. Duh 🙂
Apple 1976 and later brings the modern GUI to the masses…Followed later by everyone else. Much the same as the modern Smart phone with Gorilla Glass touch panels and a touch based version of the desktop Mac…Followed by everyone else. Not always about whom is first, rather how it it is implemented.
@psydocdennis
Samsung was making mobile phones before Apple.
OK – but what system ran those early Samsung phones?
Apple is first a software company with a difference, in that it configures and innovates its customized hardware, as a complete solution – by keeping control on both sides – hardware and software.
What came first the chicken or the egg?
Did Samsung build computers before Apple?
Did Samsung design an operating systems before Apple?
iPhone was the first smartphone to completely change the landscape – by innovating and offering a difference. Google freely gave away the key to close the gaps for manufactures to compete — do you feel that is right? The Korean government protects Samsung… why does the American government not protect this wonderful American success story?
I think we can all agree that samsungs phone were very different before the iPhone cam e along…
Samsung phones were built to order. Branded Samsung yet implemented with another manufactures OS.
Motorola was making mobile phones before everyone. What’s your point?
The talking heads and analysts need to answer one question, how many billion dollar server farms did Samsung build and how many server farms are they building now? Apple has 3 server farms that I know of up and running and I know of 2 more. Then they need to be able to answer the next question, “What is Apple doing with all this server farms and are they making others that we do not know about?”
It is to store all of the iMessages from all of the users worldwide. The messages are stored indefinitely. Unlike telcos who only store a few days worth at most.
Plus you really can’t expect Apple to be partially cloudy, now can you? 😉
It sure is interesting how the cycle is reversed: all data used to be stored in central systems and we worked with dumb terminals… now, we are migrated from local storage back to centralised locations. Just wait until you can store information in water vapour – that will be the real cloud. Oh, wait, you can. (Gargle it – information storage in water vapour/vapor)… amazing stuff that’s happening.
And Apple is leading the pack by making it better and doing it differently.
Cheers.
Is that true – lol – storing all our iMessages hahaha, is that all Apples solar powered farm capable of doing? extra lol
I would have though serving all those movies and songs AND all our personal contacts and files AND allowing use to freely chat in iMessage AND freely connect with FaceTime — be what it does.
Compared to Googles’ Data farm… which mostly
feeds advertising busy mining data and collecting user habits.
After all, iOS is the supreme mobile system of choice PLUS the number one being used the internet.
Do people really want to provide their credit information to Google Play to see movies, music and apps? No apparently – not so many.
Do businesses really wish to store sensitive files or collaborate with serious projects on Google Docs and Google Drive. Again, apparently not.
Ha ha – even China feels cautious of Google. Shouldn’t you?
Come on – do you really know what that Android for free does?
As of January, it was 2 billion iMessages per day. That’s maybe 4 TB per day. You wouldn’t need an entire server farm for that. It’s probably for iCloud document/music/movie synching.
Let’s hope they are there to improve upon iCloud, both for us end users and for developers.
Those farms are for raising digitally enhanced weed.
Okay it’s a storage company. There are lots of storage companies out there. This guys a goof!
I think this is a pro-Apple piece. Pro-AAPL, at least, right? Either way, one of the worst written things I’ve seen in a long time. Certainly a terrible analogy. Do financial analysts generally graduate high school?
Agree with the Folgers part.
But not the Starbucks part.
How about Apple is to Samsung as a BMW to a Sunfire?
Talk about damning with faint praise…