The mechanics of Apple’s next slingshot

“Apple’s summer/fall action is revealing itself,” Jason Schwarz writes for TheStreet. “The pre-earnings run has officially ended, which means we have a tight window of opportunity forming between July 23 and Oct. 23. Knowing when a run isn’t going to happen is just as important as knowing when a run is going to happen.”

“Because of the tentative action ahead of the July 23 earnings report, the Street is severely underestimating the potential impact of a new iPhone lineup,” Schwarz writes. “This sentiment is set to dramatically change in two weeks as the stock action will finally be free to begin its process of pricing in a fall bonanza. We caught a glimpse of this positive action during the recent run from $388 to $423. We expect to see much more as Apple emerges as the top play on Wall Street in the second half of 2013.”

Schwarz writes, “The new iPhone lineup represents the iPodification of Apple’s most important business segment. When multiple colors and sizes of the iPod were released in 2004, they produced triple-digit hypergrowth. A similar phenomenon could happen on a global scale in the aftermath of the fall launch.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]


  1. Jobs would never have allowed a super low cost iPhone… He lowered prices of past production models, but not an inferior product. You dilute the brand when you do that… Therefore, it’s not gonna happen in my opinion.

    1. The market of those who are willing to pay $600 (whether through a contract or not) is definitely reaching its limit. This is why Android has spread like it did. Apple has a good chance to capture a significant portion of that market back if they release a lower cost phone.

      Steve Jobs was quoted as saying that he regretted that Sculley’s Apple sat back and enjoyed their large profit margins on the Mac and never pushed for marketshare. He never intended for Apple to be content with 5-10 percent of the market.

      The lower price phone doesn’t have to be the same price as the rest of the market. Look at the iPad mini at $329 while the rest of the market fights for relevance at $199. But if Apple finds a price where it can expand its market share to 20-40 percent of the worldwide market, they write their own future.

    2. From the rumors it will just be inferior in build quality, like the casing. A low cost iphone with the same internals and screen as the high end phone could unfragment Apple completely for developers.

  2. who is anyone to say what Steve Jobs would have done? He made the iPod mini aftre the iPod, and that was a reduction in price for the same item. One thing we know he did say, and that was for Tim Cook to follow the vision of TIm Cook, and specidically *NOT* Steve Jobs. That we know for sure.

    1. True. Building an empire, and maintaining are two completely different endeavors. Tim Cook couldn’t have built Apple better than Steve, but who’s to say he can’t be better at maintaining it?

  3. Why do think Apple has started this latest round of positioning marketing? To prepare everyone for the fact it can still make quality products even out of plastic or some other cheaper material than the traditional iPhone.
    They know exactly that there will be endless drop test YouTube clips, scratch tests, etc carried out on these models so they’re spending the time now to let everyone know that they wouldn’t release a product if it was cheap and nasty and to keep that in mind when non-metal backed iPhones are announced.
    They do make car and plane components out of plastic you know…

  4. Oh boy! Here we go again with Apple’s cosmic slingshot. It’s Andy Zaky all over again. Andy disappeared without a trace because his cosmic slingshot never happened. Look, I’m only asking for a nice steady climb. I’m not expecting Netflix-type performance from Apple. Even a Cisco-type rise would be great. But how the hell does one get stuck with the company that goes down as the rest of the market goes up?

    If Apple has no intentions of selling a low-cost iPhone in China, I can fully understand it, but Apple has to offer at least some incentives to Chinese consumers in some form or fashion. Free apps or free media content or something to at least pull them in. I’m just getting sick of hearing all the negativity for no reason at all. If analysts don’t like Apple they should just talk about the stocks they think are good. No point in slandering a company and issuing groundless rumors. I know Timid Cook can’t work miracles but I sincerely hope his pep talk worked somewhat and that not everyone fell asleep at the meeting.

    I’m hoping for $450 by the end of August although at this point, I’m just praying it’s not going back down to $400. There’s only so much nonsense I’m willing to take before I explode.

    1. People like drama, stupid analysts created all the problems spreading all the negative rumors without facts for Apple, regardless how great the company is ranking #19 on Global 500 recently, profits parallel to ExxonMobil. It is difficult being on top like Apple which everyone aimed at and shot as a good targets.

  5. New colors is a Samsung like innovation move.

    They just can’t see any other drivers:
    • 5 plus billion dollar server farms coming on line (streaming 4K HDTV and much more)
    • New black colored Mac Pro (the same black color as the rest of your home entertainment system)
    • The final 2/3rd of China with China Mobile
    • iWatch
    • New OS and iOS
    • New AppleTV or just let 3rd party apps happen making Apple the largest home gaming company of all times!

    Yeah, it is the colors. Idiots!

  6. 4K Apple TV just has top beat the price of the $700 Sony 4K media streamer, with $30 movies to buy and $8 to rent.

    Want to bet that the cable companies will rely on Apple TV to serve the 4K content from their server farm and that it’s not going to go out over regular cable in the near future?

  7. Well, there were nay-sayers galore on the iPad Mini before Apple announced it. And most of those said it would cheapen the iPad, or hurt Apple’s profits or somewhere in between.

    Look at Apple now. Apple does not cheapen a market segment that they go into just because it is a step down in size or economics, price or original target segment. Quite the contrary, when Apple enters a new market segment with a lower price, history has shown that they take that market by storm while delivering quality at a more affordable price.

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