Posts Tagged ‘iphone’
AAPL: Buy Ahead of Tuesday’s Announcement?
- Published on Monday, 03 October 2011 15:54
- Written by Jared Levy, Editor, Options Strategies Weekly
I’m not here to tell you whether Apple is a good or bad company. That’s not going to make you money. As a trader, it’s my job to figure out how the masses will act when there is an event such as earnings reports or a product launch.
It’s the ability to understand and calculate the crowd’s mentality that separates an analyst from a successful trader or investor.
I would be lying if I said it was an easy task.
For Apple (AAPL:NASDAQ), the stakes and expectations are high. Even though Apple tends to downplay future expectations, it is an industry leader that must deliver big. The new iPhone launch tomorrow could be a big one for Apple’s stock in the near term, so be prepared.
Does Apple Still Have the Edge on Competition?
The iPhone, which has been out for almost five years now, has a few more adversaries to confront and conquer, and they are serious contenders.
Don’t get me wrong; the iPhone is an awesome product that was a trendsetter in form and function, but iPhone’s innovative design is now the norm and is losing uniqueness and sex appeal. There are several things we have to think about before buying one share of Apple ahead of Tuesday’s (alleged) unveiling of the next generation of its flagship product.
First off, the iPhone accounts for about 53% of Apple’s revenue. That’s a lot riding on one product that is highly scrutinized. It is a huge seller and always exceeds sales expectations, but by how much and for how long?
As cool as the device may be and as innovative as Apple is, the iPhone is being copied and improved upon every single day. The original iPhone was a game changer, but now it’s showing a bit of age and losing its place as the cool, must-have smartphone.
Google, HTC, Samsung, Microsoft and others are doing everything they can to steal the iPhone’s thunder: 3-D phones that have faster processors, more memory, and increased flexibility and functionality are creeping into the iPhone’s market share.
But the secret may not be all Read more
AMZN: Tablet Market Wars Are Heating Up
- Written by Jared A Levy, Editor, Options Strategies Weekly
I remember my father telling me over and over when I was a kid, “Don’t be a copycat!” He told me to create and innovate, to be an individual and a leader.
Copying from your classmates in school was grounds for expulsion.
But in the world of technology, copying and cloning is rampant and has been for a long time. It’s quite easy to “improve upon” an existing product or idea and make it something seemingly new and unique.
Take the tablet market, for example. Its form factor has been around for over a decade. I remember using them in the late ’90s on the trading floor. Back then you had a special pen to maneuver the cursor and make selections.
Today, tablets are the new craze and just about everyone wants to be in on the action. Unfortunately, there may only be room for a select few.
The big winners in this game will be the content and software providers… the ones who can monetize the compulsive consumer and integrate many types of features into one device.
Google, Apple and now Amazon are the strongest contenders. But you won’t believe how another company is benefiting from this market.
Amazon
Earlier this week, Amazon.com (AMZN:NASDAQ) launched a new array of Android tablets aimed directly at Apple. The top-of-the-line “Kindle Fire” is meant to compete directly with the Apple iPad, which currently has Read more
Apple (AAPL) iPhone4 Conference Coming Friday
by Jared Levy on July 16, 2010
Apple (NASADQ:AAPL) is doing the unthinkable today; they plan to publicly address the issues with their newest device. The company is under extreme pressure and has even been sued over the “external antenna” design flaws with the iPhone 4.
Apple has a history of saying practically nothing in between its earnings reports and product launches. Even in the forward-looking statements provided on earnings calls, extreme lack of detail is the norm, leaving us (the general public) to really wonder what is going on in the “Wonka Chocolate Factory.” Heck, the iPhone doesn’t even come with a complete user manual; you have to dig through the web for that one. (My grandfather still can’t get past making a call and texting).
That strategy has worked thus far. The Apple mystique and magic marketing machine has pushed product sales to record levels and in turn AAPL stock, which is up $42.00 or 20% year to date (it got as high as $279.00 on June 21). But Apple now faces a serious challenge with this iPhone 4 “problem.” Of course there may be potential costs associated with repairing/recalling the hundreds of thousands of iPhone 4s produced. But the bigger issue may be the firm’s reputation and whether the “Kool-Aid” they have so far been able to get just about everyone to drink is in unlimited supply after all.
A repair solution might be to give users a free case, which could cost Apple a few dollars per phone. Jobs might also offer a big cash rebate to really make everyone happy, but I believe that this weakness has the potential to really affect iPhone sales moving forward.
You see, it’s not just an antenna issue the iPhone has had; the battery life and dropped calls (on the older phones) are reported problems as well, along with some other small quirks. How many people do you know who have broken or cracked their iPhone screen?