Once other products are good enough, apple's margins are going to shrink. Microsoft's margins are going to shrink and so will google's. That's the threat of 10 inch kindle or a kindle phone. If it is good enough, people might buy it because it can be very attractively priced because AMZN can afford very low margins. Imagine if Apple has to do with 1/2 its current margins. The stock will get crushed. People have been saying that for years, right here on this thread. "Once the competition catches up, Apple's margins will shrink."
Why is it that after five years, no other phone is "good enough?" Not that a number of phones haven't been quite successful, and obviously Android has done well overall. But even in the face of that competition, Apple and the iPhone have thrived. Sales continue to grow, market share continues to grow, and Apple pulls in more profit from smartphones than all of its competitors combined.
Why is it that HP, Dell, Lenovo, Samsung, HTC, Sony, Motorola, Acer, Asus, RIM, and so on, haven't been able to come up with a tablet that is good enough to push the iPad below 60% of the tablet market, despite having had more than two years to do so?
There's a reason, Sandeep, and you're missing it. Well, probably more than one reason.
In any case, an Amazon phone isn't something Apple investors need worry about, even in the unlikely event that it becomes a reality. |
