You're stating number one that as an axiom, which I am not sure I can agree with, unless you want to provide some supporting logic. I suppose that if there were no Android, some people who would otherwise buy an iPhone won't. But given that Apple currently sells all the iPhones they can make, I don't see that having a meaningful effect on revenues or earnings per share.
Yes, I absolutely 100% believe that if there was no Android that more people would buy iPhones. Anecdotally, I know that it is true among people that I know and I would be a bit surprised if it wasnt also true among people that you know. More broadly, I do think that it is axiomatic that the better the competition is, the fewer people will decide to buy your product. No company operates in a vacuum.
The fact that Apple is currently supply constrained is immaterial. That is a short-term situation while I am talking about the long-term profit potential.
All that having been said, I am not claiming that Apple's margins will always stay exactly where they are. The company may well reduce them somewhat for competitive reasons. But the margins aren't going to "fall through the floor" as many Android boosters have predicted. That was my point, and I'm sticking to it.
I'll agree with that. Your original statement was a bit more vociferous....you stated that Anroid wouldnt "materially affect" Apple's margins. There is a wide difference between that statement and saying that the margins wont fall through the floor.
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