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Technology Stocks : Apple Inc.

AAPL 259.95

-0.4%

Jan 14 3:59 PM EST

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To: pyslent who wrote (154916)	6/6/2013 10:20:10 AM
From: Ryan Bartholomew	Read Replies (1) of 213182

There's always been competition, yet iPhone ASP has been incredibly consistent. I have not seen evidence that there's any new pricing pressure. Maybe that changes in the future. That's what I'm saying - it is changing going forward. Even in that chart, you can see some recent downward pressure. Horace Dediu has done some calculations to determine that each iTunes account holder spends about $40/yr. That seems to be a pretty good, existing monetization scheme, doesn't it? For comparison, Google once mentioned that they were targetting $10/yr per smartphone user as a revenue goal... Presuming the numbers are correct, that's revenue from buying media from iTunes. iTunes generates a trivial sliver of Apple's overall profits, so it's likely low-margin. Google's revenue from phones is high-margin, so less revenue can still yield greater profits. That's where I see an opportunity for Apple. The new streaming service could produce higher-margin revenue if they monetize it efficiently. That would require partnering with someone who does a better job of extracting revenue from eyeballs (eardrums, in this case).

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