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

To: rnsmth who wrote (148836)	1/23/2013 11:26:34 AM
From: slacker711	Read Replies (1) \| Respond to of 213177

Do you really think that supplying multiple iPhone models will reduce their share of industry profits? Slacker

To: rnsmth who wrote (148836)	1/23/2013 11:35:19 AM
From: Keith Feral	Respond to of 213177

Apple's competition like RIMM isn't selling enough phones to cover fixed costs, which is why they are losing money in the first place. The selling prices of smartphones do not favor Apple one way or another, it's just that Apple sells enough phones to make a great profit. I still think Apple's market share has a long ways to go, and they will need more products to meet different types of demand. I think Apple's valuation has already passed the point where concerns about the lower price of the iPhone 4 have any relevance to margins. Lower ASP's for the iPhone 4 may still carry the same gross margins as the iPhone 5. If Apple didn't have the iPhone 4 and 4S selling for $0 and $99 this past quarter, they may have lost more business to the competition. Apple is still collecting a lot of money for the iPhone 4 which was rolled out more than 3 years ago. That's got to be a record, and the 4S still has another couple years to go. 3G is not going to fade away any time soon. Eventually, 3G will begin to slow down relative to 4G. The replacement market for all those 3G devices is going to be huge in the second half of this year going through 2014. No doubt that 4G smart phone replacement will be the biggest source of cap ex spending for the telecoms for the next several years, as they put the finishing touches on their 4G networks this year.