“Over the past two decades, Apple has proven capable of exercising its rapidly lithe, innovating ability to take its existing technologies and create new computing forms that retain its influence over the most commercially successful and strategically important markets,” Daniel Eran Dilger writes for Roughly Drafted. “That winning strategy of the past also appears to be the best suited for the future of iPhone.”
“According to the world of analysts and punditry, Apple’s iPhone is nearing the end of the innovation runway, and the only direction it can now take is to radically lower prices and gain market share so it can shift from being a hardware company to being a services company that rents movies like Netflix,” Dilger writes. “Of course, the only reason they’re even talking about Services is because Apple spoonfed them its plans to develop expanded new Services for its vast installed base of iPhone users.”
“After inventing the false idea that periodic unit sales are more meaningful than Apple’s installed base, they’re left with the totally misguided conclusion that Services is a desperate move of a crumbling empire, rather than being essentially the same thing Microsoft did when it expanded its PC business from Windows to Office,” Dilger writes. “Building a platform and then building on top of it is exactly what companies are supposed to be doing, not an either-or conundrum.”
Read more in the full article – recommended – here.
MacDailyNews Take: With a company as dominant as Apple, the only way to create churn (commissions, brokerage fees, etc.) is via huge servings of fake news. There’s so much of it that some of these myopic pundits and easily-malleable analysts actually come to believe it.
We’re not sure that most analysts or investors can rally wrap their minds around the vast amounts of money that the machine that Steve Jobs built has generated, is generating, and is capable of generating going forward. — MacDailyNews, May 3, 2018
Apple has an installed base of 1.3 billion devices. When that number finally sinks in on Wall Street, hopefully sooner than later, Apple shareholders will benefit. — MacDailyNews, November 13, 2018
There is no better tech analyst writing today with the insight and facts and industry knowledge to totally obliterate all the nonsense written about Apple in both tech and financial media than Daniel Eran Dilger. It is very unfortunate that he does not have a higher profile platform from which he is posting. He does not get near the airplay he should. Jim Kramer should have him on the morning or evening show to discuss Apple and destroy false narratives. The Wall Street Journal or Bloomberg should feature him. There is way to much high profile BS being shoveled and not enough DED to correct it all.
Services alone are not going to make or break Apple. Indeed, pricing has in fact been an issue for the last 3 or 4 years. Ironically the biggest issue (amongst many) however is not pricing but a company wide lack of focus, coupled with systemic over charging for accessories and basically outright product neglect along several product lines. You could also include a lack of quality assurance and even subpar products (new Macbook Pros).
How do you fix these things? That’s ultimately going to be up to Apple and it’s board, because Cook is apparently okay with the status quo. This attitude clearly explains Wallstreet’s schizophrenic reaction to Apple stock. Cook pulls in profits but they come at a high cost. No one knows when the price of Apple’s profits might actually cost them the future prosperity of the company itself.
Yes, I am totally “derrr” and I bait ‘em with unintelligent bile