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Technology Stocks : Apple Inc.
AAPL 280.65-1.2%Dec 4 3:59 PM EST
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To: XoFruitCake who wrote (128909)3/22/2012 4:03:31 PM
From: pyslent  Read Replies (1) of 213173
 
". I expect Iphone 5 will be the last really fat margin product on the smartphone side. Apple can prove me wrong but it has to prove itself every year."

Actually, I suspect that Apple is the only phone manufacturer that does NOT have to prove anything with every model. Sprint gave Apple 4 year volume commitment, basically buying future iPhones for a fixed price sight unseen. I would be surprised if they were the only carrier to ever do so. i would also be surprised if any other manufacturer can get a guaranteed contract for more than a months worth of product from any carrier. Apple has the luxury of committed buyers whenever they want to sell product. That is not to say that they can and should rest on their laurels, but to say that margins are in jeopardy after iPhone 5 assumes no long term contracts other than Sprint, and no innovation out of Apple to keep the iPhone desireable with end users. Both seem unlikely to be true.
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