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Technology Stocks : Apple Inc.
AAPL 278.79-0.7%Dec 5 3:59 PM EST
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To: XoFruitCake who wrote (128945)3/22/2012 7:29:24 PM
From: pyslent2 Recommendations  Read Replies (1) of 213173
 
The question I have and I think we should all ask is what is the must have feature in Iphone 5 and Iphone 6??

I think that's that wrong question personally. The must have feature in the 4S is the same as it was in the 4 and the 3GS. It's the differentiated OS. The iPhone is the price of admission into the iOS ecosystem. Keeping that desirable is where Apple should focus their efforts. It's not about hardware specs or features or design. They all contribute to the whole, but as long as people will change carriers to get the iPhone in whatever embodiment Apple releases, the iPhone will command a premium price with the carriers. Google and Microsoft can build competitive offerings, but the device manufacturers do not have benefit of differentiation between each other, which eliminates any sustained pricing power.

And would carrier be willing to subsidize Iphone forever when it hit their balance sheet?


As long as the iPhone delivers customers it otherwise would NOT get, it's worth its subsidy. In the case of Sprint, $1920 in contract revenue is always worth the $450 up front cost. They would rather pay $250 for that customer if they could, but incrementally, there's no question that every iPhone customer is a profitable customer.
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