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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: pyslent who wrote (128927)	3/22/2012 6:15:30 PM
From: XoFruitCake	1 Recommendation Read Replies (2) \| Respond to of 213173

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 I would submit that long term contract will run out and at the time to renegotiate for the next long term contract, the term will be change substantially if Iphone don't keep the must have status. And I think your statement is the exact reason that Apple will have to prove their phone every year. The difference between Apple and other phone manufacturer is the must have features.. When I look at Android phone market, what I found is that manufacturer put out a new phone every 2 to 3 months. It is great until the next newest and great android phone come alone and the price of the phone drop like a rock. there is no way to build great profit margin when every new phone only sell a million or two unit before the next newest toy appear in the market. The question I have and I think we should all ask is what is the must have feature in Iphone 5 and Iphone 6?? Android phone can easily match Apple hardware spec. in the processor, display, memory, network speed area. Right now I think Apple has the lead on battery engineering, cross system app (e.g. iwallet), Siri, ecosystem (all the free apps especially). The advantage is big enough to hold the current users to stay in Iphone land. But are they going to be good enough to keep converting those mid range buyer (those willing to spend 100 to 150 after carrier subsidy) and get them to pay premium price for an Iphone? Once Apple get 30-35% market share, they would have gotten all the premium buyer that are willing to pay for features. And the next group is the mid price buyers. And would carrier be willing to subsidize Iphone forever when it hit their balance sheet?