Today was a tough day for Apple’s stock price, which lost nearly 5% today after their earnings post. Although Apple reported solid revenue numbers, it seems that many investors are beginning to doubt future growth. Really? What is everybody talking about? Apple one of the few stocks that you can look at it with a 30 year viewpoint and see nothing but a lower-left to upper-right hand straight line.
I’ll be the first to admit that I am not an Apple fan boy. I love the stock ticker AAPL! But, not a fan of iPhone. Rather recently I have been growing to be a huge fan of Apple computers loaded with Linux. If Apple released a 17-inch Macbook Air, I would spend some good money on it. Otherwise, my next laptop will be a 17-inch Macbook Pro paired with my 13-inch Macbook Air. iPhone 5, no interest at all… But I’m a developer, so I put functionality first. MacBook’s provide easier aesthetic use with terminal control, now with Intel chips, far greater than bulky Window’s, Prompt based machines. On the mobile side, Android devices offer far greater custom function and produce far quicker variants than iPhone will ever achieve. While Window’s PC’s offer the cheapest desktop solutions and the quickest speeds bar-none.
What bugs me is that what I enjoy most about Apple is only 15% of their revenue, while iPhone’s and iPad’s are 75% competing against a free Android Operating System. Recent reports are stating that Safari is now going to imitate Google Chrome (now the #1 browser in the world). Mozilla is doing the same thing, trying to imitate Google Chrome and it’s not like Chrome did anything different than to just offer something that people actually want. Actually, Google Chrome came out for iPhone and iPad in a much wider release for Apple users than Google’s own Android device, which is only supported under Ice Cream Sandwich. That’s quite a strategic move
At the same time, new Apple OS’s go from $40 to $19.99, it seems interesting to see that they can provide such a cheap OS release. Maybe they are following Chrome again with expedited release cycles at lower costs? They have been doing this against Windows for some time, so I wouldn’t be surprised. Pay $20 installments per 6 months, rather than $300 per 4 years.
What is going on with Apple’s recent developments? Building these hundred billion dollar companies, such as Microsoft, Google, and Apple, rely on the development of suites of products. You may lose money in one product, but gain the fan base to pull a user in to buy the rest of the suite, simply because of how impressed they are with that one product. Providing valuable products and services to your customer, rather than focusing on margin’s are what really and truly win your customers over. Once you build your base, you can start dipping into the margins by being efficient and charging something that people are willing to pay.
Microsoft lost money on XBox for how long? But they won the war and took over gaming platforms. Google has been creating and developing Android for free, claiming to build “search” credibility, while intruding on Apple’s mobile space. Apple sells expensive hardware and software as a Premium product. And it has been working and has made them the most valuable company, ever, beyond Exxon even! Is it time to start offering better prices on Macbook’s and Mac Pro’s in order to really enter the PC and laptop market and make a serious dent? Well this new OS price makes me think of that.
My question is, what is Apple’s new strategy as the dominant computer company? Will Premium win over forever? How do you take iPhone and iPad down from 75% revenue in a highly competitive Android war? Copy them, do what Google’s doing… offer 3rd party manufacturers to iOS operating systems? lol… that’ll be the day… So, I guess we will sit and wait for an answer.