High end eReader saves Apple - well almost.

[Sweetpea]

Originally Posted by HarryT

Are Apple losing market share in the "premium" Smartphone market? That's the market they dominate, and I see no signs of that changing.

They might not be losing market share there, but I think that market itself is shrinking.

The crisis is hitting everywhere, and more people will look twice before spending a lot of money on one device while the previous one is still working perfectly.

[pwalker8]

There are a lot of ways to spin numbers depending on what you want to prove. Apple tends to look at profit rather than market share, and has for a while. Apple's issue is more what will be the next great thing, rather than can they maintain market share on older productions. Their business model depends on new high profit items coming out on a regular basis. IMPO, they are getting pretty close to that point where they need to come out with a new device (iWatch perhaps, or maybe something to do with video entertainment?) to generate more buzz, but they are hardly struggling at the moment.

A lot of the issue with smartphone market in the US is that the big wireless companies have changed their subsides policy from new phone every year back to new phone every two years. That means that people are holding on to the devices longer. Apple did misjudge the market for the 5c, but the 5s sales are strong. iPad sales are strong as well.

[HarryT]

Originally Posted by Sweetpea

The crisis is hitting everywhere, and more people will look twice before spending a lot of money on one device while the previous one is still working perfectly.

What crisis are you referring to?

[MikeB1972]

Originally Posted by HarryT

Are Apple losing market share in the "premium" Smartphone market? That's the market they dominate, and I see no signs of that changing.

I'm not sure. Using my high tech method of "seeing what phones people have while out and about" Samsung Galaxy phones seem to be making good headway.

Just in our, admittedly, small office there are now 2 iPhones and 2 Galaxy 3/4's whereas a year ago it was 4-1 to the iPhone (One of the techies switched from iPhone to Google Nexus 5) I suspect it depends a lot on where you live though, iPhones still seem pretty prevailant in Manchester city center as near as I can tell.

[Penforhire]

Samsung is moving a lot of Galaxy series phones with the people where I work as well, more in their homes than at work. I see mostly Motorola's Android phones at work, when they are not iPhones.

But if I switched to Android in the next few months the Nexus 5 would be my choice -- great price, decent specs, 'vanilla' Android interface, and best OS upgrades from the mothership.

HTC seems to making an even steeper dive into the ground after announcing cutting off OS upgrades for some phones as recent as 18 months old. Sad, for a company that really had the upper hand not so long ago (and still has a top-regarded current model).

I'll start worrying about Apple if they do not show us a new product segment this year, not just iPhone 6 or an iPad Air Pro (and not a smart watch either, too little money to be made there). I'll ride my AAPL shares through the turbulence until then.

[pl001]

Originally Posted by pwalker8

Apple's issue is more what will be the next great thing, rather than can they maintain market share on older productions.

That would appear to be what they are banking on. Unfortunately that is not a sustainable business model. I personally don't think they are that ignorant, even if many of their investors are. But as their market share continues to plummet and they do nothing to stem the tide I am starting to wonder.

[pwalker8]

Originally Posted by pl001

That would appear to be what they are banking on. Unfortunately that is not a sustainable business model. I personally don't think they are that ignorant, even if many of their investors are. But as their market share continues to plummet and they do nothing to stem the tide I am starting to wonder.

Innovative premium products can be a sustainable business model if you have good people and invest in development. Most companies aren't willing to do that, preferring to pinch pennies and kill the golden goose. I have no doubt that Apple may eventually do that, but they have been on a pretty good run since the the iPod and iTunes came out. Supposedly they had some five years worth of products in the pipeline when Steve Jobs died. We will see what comes out this year.

[frahse]

Apple is indeed a "premium" product.

Apple customers pay a premium (def #2 "a sum over and above the stated value" - my Franklin's definition ) for Apple products.

We can argue all day about Apple product's value, which I consider good, but I also consider the products too pricey at least for me, though I have bought a few Apple products in my time on request. Not many will argue about the prices being high though Apple customers have paid them over and over, which is why Apple has a giant treasure chest.

Edit - working (changed "can" to "will"

Apple only in the last few years has offered a Dividend, but even so, in 14 months its stock went from $700 a share to $400, and then back to $550.
Today it went below the $500 resistance level but managed to inch back over slightly. The volume was about 18Mil while the average is 12Mil.

Apple could raise its dividend or it could buy back stock. Either would help its market position. Steve Jobs was always reluctant to do either. I think Tim Cook is trying not to change too many of Steve Jobs customs.

--- but there is coming on the horizon the new Apple TV which might play games, and heck (this is mine) maybe double as a outsized watch.

[Bittybye]

Like others have said tablets are not ereaders. I have a tablet and I have a ereader. I love both but I could never read on my tablet more than a few minutes because of the eyestrain.

[afv011]

Originally Posted by pwalker8

Supposedly they had some five years worth of products in the pipeline when Steve Jobs died. We will see what comes out this year.

Really? Five years? Most phones product cycles are 12-18 months, there's no way Jobs had 5 years in the pipeline. Just one year in this rapidly moving segment can yield impressive developments, let alone 5. To me, this sounds like marketing spin to appease their fan base.

[Penforhire]

Five years does sound extreme but we're not just talking phones. With as much money as Jobs had at hand to throw around it would not be too surprising if they have a development lab with several years worth of new product ideas (TV's, watches, or whatever).

I still remember when Apple moved into phones. I laughed at them along with almost everyone else. Microsoft lost their shirt trying to crack that nut earlier. I bought an early Windows CE phone and taking it back the same day because it was so awful. Apple sure had the last laugh over Microsoft in that market. MS has a much improved phone OS today but it still struggles for market share.

[frahse]

A barely slowed decline!

Apple [AAPL] slipped below the resistance level of $500/share today and the fight to hold it there shows with a volume of over 24 Million shares traded, above yesterdays, and twice the average.

Apple is really trying with this new TV idea, and may come out with a all in one TV and game box included. Their big problem is with "content." The video content is mostly already fully sewed up by others.

[cfrizz]

Originally Posted by Bittybye

Like others have said tablets are not ereaders. I have a tablet and I have a ereader. I love both but I could never read on my tablet more than a few minutes because of the eyestrain.

And like others of us have said, a tablet can just as easily be an ereader if the person wants it to be. As can a phone, or an mp3 player. I utilize ALL of these devices as ereaders.

If you don't want to use your tablet as one, that's just fine but you don't get to dictate to the rest of us if we choose to use our tablets or any other device for that matter as ereaders!

[HarryT]

My iPad Mini is my main reading device. I find it makes a superb reader.

I really have to wonder how people who say that LCD screens "hurt their eyes" manage in the modern world, when so many people spend their whole working day looking at LCD screens. Do they have to find jobs that don't involve using computers?

[tubemonkey]

Originally Posted by HarryT

My iPad Mini is my main reading device. I find it makes a superb reader.

I really have to wonder how people who say that LCD screens "hurt their eyes" manage in the modern world, when so many people spend their whole working day looking at LCD screens. Do they have to find jobs that don't involve using computers?

Reading novels requires constant eye contact with the display. Not so with watching videos or reading articles. If I averted my eyes away from a novel as much as I do with videos and articles, I'd totally lose my concentration and give up.