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Strategies & Market Trends : BAK - Investing
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To: batman10023 who wrote (3041)7/6/2012 3:10:50 AM
From: XoFruitCake  Read Replies (3) of 3249
 
Re: APPL...Xo

i still can't figure out how apple is able to take percentage of sales on their devices and others have not been able to figure it out or do it as profitably
I think you have to look at the features that they offer. In most case, they try to have some "hook" that is unique to their product only (Siri in Iphone 4S and retina display on Ipad 3). If someone value those "hook" they will pay up and buy into Apple ecosystems. Apple is very good at trying use one device to sell another Apple device to the user.. I just bought an Apple TV ($99 a pop) to try to get a mirror image of my Ipad on my TV wireless. PC can put imagine on TV as well. But we need to hook up a long HDMI cable from my laptop/desktop to the TV and put the cable away when I am done. The PC maker don't make a dime for the "solution" while Apple just upsell me another device.

One of the reason Apple is really strong in the Apps area is that Apple customer tends to be willing to spend more money on apps. Android user want free apps (and developers will have to rely on ads to pay for their effort) and Apple users are willing to pay for apps if they like them (and they are more willing to spend money on in-app purchase as well. It is a big deal since in-app purchase is impulse buying and can be pretty good dollar amount if someone is hooked). You can guess which system developers put their best apps in.

And given the size of their manufacturing operations now, their manufacturing cost is at least 15-20% less than anyone else. On the Iphone area, I think they will hit the upper ceiling of high end smart phone market sometime in the Iphone 5 cycle unless Iwallet really take off (doubtful.. but... ). I would guess at least 40-50% of Iphone purchase now are upgrade from existing Iphone user. And once the innovation slow down, the upgrade cycle will lengthen out and the unit growth will stall. New smartphone users are typically the cheapo guy like me and we are close to the end of smartphone migration anyway. A lot of user will stay with dumb phone and be happy. This year, Apple was helped out by the demise of RIMM, HTC, Motorola and LG in the smartphone area.. All four of them don't even have the me-too offering this year. So their market share get divided by Samsung, Apple and no name Android that cost next to nothing. I am much more bullish on the Ipad. It is 3 months after Ipad 3 launch and no one has announced any new retina tablet yet.. Ipad 2 seem to be very popular for massive deployment type of applications. And if Apple continue cut price on Ipad 2, they are going to be very hard to replace. The window 8 tablet looks to be a replacement for laptop. Selling it into consumer space is iffy at best in my book.
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