SI
SI
discoversearch

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: Ryan Bartholomew who wrote (169046)4/29/2014 4:25:08 PM
From: pyslent1 Recommendation

Recommended By
JP Sullivan

  Read Replies (3) | Respond to of 213174
 
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.

I'm of the mind that if it ain't broke, don't fix it. Apple's business model is 4X more profitable than Google's. If Google ever manages to earn $40B in a year, maybe that will give Apple a reason to emulate them. Until then, Apple probably has their own idea how to grow profits from here, and I doubt advertising is a big part of it.

Incidentally, I have never once clicked on an ad on my iphone. if someone is spending $20 a year advertising to me, they are wasting their money.