Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: pyslent who wrote (169042)	4/29/2014 1:59:54 PM
From: Ryan Bartholomew	Read Replies (1) \| Respond to of 213174

Google's $50,000,000,000 doesn't come from 2,000,000,000 users. Not even close. The upper bound would be defined by dividing the revenue by the number of users contributing to that revenue. If Apple is seeing $160/user/year and that declines a bit as margins fall and it's possible for them to add $20/year/user now and expect that number to grow markedly each year, then cutting prices, boosting users & share, and adding stability - even if it costs a bit in the short run - would pay off. Instead, I think the iPad is a sign of what is to come for the iPhone, and they won't do anything about it... they'll just take a stab at new products (with the profit prospects for the rumored ones increasingly dimming).