Another article talking about the plateau-ing portion of the S curve… essentially theme d. The plateau has started in 2015, so far Apple manages it quite well till the tariff war that causes China economy to decline much faster than expected from Nov 2018 + anti-Apple sentiments because of the early Dec 2018 arrest of Huawei CFO (Jim Cramer said is an uncharted territory when ask what is the impact on Apple). Apple has been able to compensate for the S-curve with slightly higher price iPhone X series, growth of services (App store, Apple Care, Apple Pay, iCloud, Apple Music, licensing, impending Apple Video Streaming, future healthcare services), stars (Air Pods, Apple Watches) and wild cats (HomePods, future healthcare/ AR products) and controlling the rise of operational & HR expenses (building Apple campuses in other tech hubs is a cost control as well as go where the talents are measure).
Now, Apple wants the blessing of some of the country’s biggest health insurers, and some have already begun subsidizing the Apple Watch, which retails for $399, or $499 for the model that connects directly to cellular service.
Apple is said to be in talks with a number of private Medicare plans to subsidize the cost of the Apple Watch for people older than 65, according to a report by CNBC.
Not old enough to get the subsidy.
Many big insurers provide Medicare Advantage plans – which are run by private insurers that receive government payments for providing Medicare services to seniors. These plans have the latitude to approve devices like the Apple Watch if they can demonstrate a benefit to plan participants.
There’s a pool of more than 19 million seniors who participate in these plans, providing a fertile field for Apple.
Max market potential = 19M * $400 = $7.6B What would be the initial penetration? Max? Obviously revenue is not large enough for manch.
Tom and David just revealed their ten top stock picks for investors to buy right now. Apple made the list – but there are 9 other stocks you may be overlooking.
I have posted the article already and gave an explanation, sorry you are too slow.
It seems you only care about what you have to shout out and don’t read/ignore what others said/ posted.
I have visuals of what you have said. If not for the sudden drop due to tariff war/ CFO issue/telcos subsidy, revenue of AirPod/ Apple Watch/ Services is sufficient to compensate for the plateau-ing iPhone. Articles claiming Apple is not doing anything about the plateau-ing have intentionally ignored the AirPod/ Apple Watch/ Services, and the current R&D in AR/Healthcare products & services or they are deaf and blind.
Patience I would add in iMessage. Jony Ives is in charge of UI now, he is supposed to have understood SJ and hence able to produce same design as SJ. No?
He better or the hardware premium will disappear over time. Siri is over 7 years old… Apple maps is over 6 years old. I’m not optimistic. They really botched it not buying Waze.
Adding staff in Culver City, Seattle and San Diego supports move into services and pricier hardware
Culver City gives Apple a Hollywood homebase as it pushes into video programming.
Seattle is a machine-learning hub where it can develop algorithms that personalize streaming-music playlists and improve Siri.
San Diego and Austin offer semiconductor engineers who can advance the customized-chip efforts that help Apple wring more money out of its iPhones, iPads and Macs.
The mix of software and services and higher prices are key to Apple’s effort to offset slowing iPhone unit sales.
Aside from the political goodwill, the job expansion outside Silicon Valley could help Apple diversify beyond the iPhone.
Slow progress of Siri, Maps and iMessage could be because talented SWEs are poached by AMZN , GOOG and FB.
Service software is all about constant refinements and frequent iterations. Hardware is the opposite. You need to make sure your release is close to perfect because mistakes are costly to fix.
The two development models are polar opposite. It’s hard for a company to be good at both. Google is great on service software but it’s hardware like phones aren’t that great. Apple is the opposite.
It’s imprinted in the company’s dna. Not fixable by one or two guys at the top.
Nah. As long as Bezos is running things, I’m good. If he decides to quit to be a playboy, then I’ll have to think about things.
After Apple, I worked 2 places without a visionary founder running them. Both turned from solid growth to declining revenue. Too much tech compensation is stock, so it pays to be at a growth company. Declining revenue is actually more stessful, since it’s a totally negative type of stress. Trying to scale and keep up with growth is exciting.
In his morning column over on Real Money , Cramer weighed in on China’s weakness and what it could mean:
Either way, the weakness in China improves the prospect of a trade deal – provided that the Chinese somehow become willing to acknowledge that they steal IP. I bet they are trying to figure out how to show that they do.
The solution is pretty easy: Grant our companies the rights to operate independently of China, be willing to prosecute those who steal, including the execs who run Xiaomi, and then let the telcos offer subsidies for Apple (AAPL - Get Report) phones on par with domestics, and it’s a done deal.
Jim Cramer demands China telcos to offer the same subsidy for China handset makers to Apple Articles that insisted iPhone X series is too expensive for China consumers conveniently ignore this subsidy.
That’s really your rebuttal? How many foreign companies sell cell phones in the US without a problem? Huawei is the only one banned. Also, other countries are banning them. That would indicate the problem is specifically Huawei.
Forbes.
What would be the initial penetration? Max? Obviously revenue is not large enough for manch.
I would add in iMessage. Jony Ives is in charge of UI now, he is supposed to have understood SJ and hence able to produce same design as SJ. No?
, GOOG and FB.
