Jan

21

 Any doubts about Apple under Tim Cook being different than the Apple under Steve Jobs are gone by now. Apple capex is up, there's a swing in production back to the US, and there have been at least one "significant" software disaster. Now come the reports of changes in the product cycles and product introduction schedules. Apple hasn't shied from cannibalizing its products in the past, so I don't this it will pause from doing so now. I'm wondering at what point does the smartphone market go generic? Conventional wisdom is that with the Chinese now buying smartphones, the market will only expand. Perhaps. But are the Chinese prepared to pay the premiums for smartphones as Westerners have? That's a problem not just for Apple. Then again, I've yet to walk into an Apple store that wasn't packed. Even during the recession.

"Rumor: Apple to debut 4.8" 'iPhone Math' device alongside next-gen iPhone in June"

Henry Gifford writes:

When I bought my phone the guy in the store (in New York City) told me the US Federal government subsidizes every mobile phone in the US to the tune of $600, limit once per person per two years, thus the two year contracts.

Subtract $600 from the price in China and the price is quite similar to the US price.
 

Russ Herrold replies:

Yeah, counter clerks will say almost anything. The truth is more commonplace. Some subsidies exist, nominally for low income folks but the people PAYING FOR that subsidy are … [hint: go read your cell phone bill closely] all the other telephone users. This is a good article about it.


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2 Comments so far

  1. Erich on January 21, 2013 6:47 pm

    I wondered for years when digital music players, a technology so easily duplicated/commoditized, would go generic. Still waiting.

  2. astro the family dog:) on January 21, 2013 11:01 pm

    apple…= rca…1933/

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