Greg's BIte: Apple expectations, Sprint
TweetFollow Us on Twitter

Greg's BIte: Apple expectations, Sprint

Posted by Greg Mills

The Apple rumor mill, which we at MacTech contribute to, tends to build expectations for Apple product launches that sometimes go over the top. Had Apple called the iPhone 4S the iPhone 5, there would have been a very bad buzz in the press that the update was insufficient to get the name iPhone 5. The rumors that seek to fill the information void that Apple intentionally creates, generate expectations that each product launch is the end all, do all electronic bunker-buster of all time.

Sometimes, technology in chip development, for example, holds up an Apple product. Some analysts are speculating that the LTE G4 chips available today are just too big to fit the iPhone's slender form factor. Cost is also a consideration when you are planning on building 75 million of anything. Apple has gross margins to kill for, just ask any competitor forced to sell things at a loss to be competitive with them.

The roll out of the G4 network is going forward world wide, but is not universal enough that Apple was forced to bulk up the iPhone to include current oversized chips. Chips tend to be cheaper and smaller each generation as experience from prior chipset are passed down to the more modern silicon. Samsung had to use two chipsets in its 4G smartphone at a significant cost in both size and part prices. Apple choses to wait until the 4G chips are developed that will meet all their expectations. You can be sure they are working with the chip vendors to remedy the situation.

At the end of all the disappointment in the press, the improvements of the iPhone 4S over iPhone 4 are pretty impressive. Double the upgraded processing chip to a dual A5 and the power is incredible and able to do things it took a laptop to do previously. The cameras and lens assembly are much improved and will tend to replace more and more digital cameras. You always have your iPhone with you and the picutre quality is as good as most point and shoot digital cameras anyway.

If I wasn't ready to switch cellular networks when my contract gives up, I would likely buy an iPhone 4S. Timing is such that spring will likely be the period where the iPhone 5 hits the market. You can be sure, Apple isn't sleeping at the switch and just as fast as they can launch the perfect iPhone 5, they will do so.

Yesterday's sprint story seemed to be right except the part about them getting an exclusive on iPhone 5. The stock for sprint is down almost 20% since the US20 Billion dollar iPhone deal was reported by the WallStreet Journal. Investors in sprint fear the combination of consistent red ink for the last few years, a declining customer base, a giant investment in the ClearWire 4G network and now a contract with Apple worth twice sprint's market cap may tip the boat a little too much and take sprint down.

Frankly, if cash rich Apple wanted to buy sprint, fire the personnel down to the janitorial staff and build a world class cellular network, they could do it. The sprint market cap was about US9 Billion before the iPhone contract announcement, so a 20% drop in stock valuation would make sprint cheap enough to tempt a takeover. Retire the yellow swirl into the toilet logo and replace it with an Apple logo and the street would snatch up Apple Cellular stock like candy.

It is indeed ironic that the number one reason customers are leaving sprint is the lack of an iPhone in their inventory. Then they make a deal for 30.5 Million iPhones and their stock falls through the floor. If half the current sprint customers replace their existing phones with iPhones when their contract gives up, sprint will come out of the situation in 2014 or 2015. Right now, it will cost sprint $500 out of pocket, to supply iPhones to customers whos contract with them for at least 2 years of service.

The only other things sprint has going for it is that they are the only US carrier offering an unlimited data plan. Their network is under utilized due to bleeding customers to the other networks, so there is sufficient capacity to offer all the data you want for a flat rate. This will change if they ever begin to reach any where near capacity.

The other thing they have going for them is that while the ClearWire 4G network is still in development, they do have some 4G service in larger cities to sell. I tested a Clear 4G router a year ago and found that there was insufficent service area to justify the cost and if the mobile server reverted to 3G you had to also have a 3G sprint account. Not going to happen. Clear is losing money hand over fist and contributing to the the sinking valuation at sprint.

I hate to say it but, if you believe in the power of iPhone or figure Apple might buy or take over sprint, a long position on sprint stock might be a very good investment. The stock for sprint has been downgraded already to take the risk into account compared to hard valueation. That is Greg's Bite for today

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Affinity Designer 1.5.5 - Vector graphic...
Affinity Designer is an incredibly accurate vector illustrator that feels fast and at home in the hands of creative professionals. It intuitively combines rock solid and crisp vector art with... Read more
djay Pro 1.4.3 - Transform your Mac into...
djay Pro provides a complete toolkit for performing DJs. Its unique modern interface is built around a sophisticated integration with iTunes and Spotify, giving you instant access to millions of... Read more
Jamf Pro 9.98 - Powerful sysadmin/enterp...
Jamf Pro (formerly Casper Suite) is the EMM tool that delights IT pros and the users they support by delivering on the promise of unified endpoint management for Apple devices. At Jamf, connecting... Read more
Airmail 3.2.4 - Powerful, minimal email...
Airmail is an mail client with fast performance and intuitive interaction. Support for iCloud, MS Exchange, Gmail, Google Apps, IMAP, POP3, Yahoo!, AOL, Outlook.com, Live.com. Airmail was designed... Read more
RapidWeaver 7.3.1 - Create template-base...
RapidWeaver is a next-generation Web design application to help you easily create professional-looking Web sites in minutes. No knowledge of complex code is required, RapidWeaver will take care of... Read more
PopChar 7.7 - $16.99 (51% off)
PopChar helps you get the most out of your font collection. With its crystal-clear interface, PopChar provides a frustration-free way to access any font's special characters. Features Expanded... Read more
Apple iTunes 12.6 - Play Apple Music and...
Apple iTunes lets you organize and stream Apple Music, download and watch video and listen to Podcasts. It can automatically download new music, app, and book purchases across all your devices and... Read more
MacPilot 9.0.6 - Enable over 1,200 hidde...
MacPilot gives you the power of UNIX and the simplicity of Macintosh, which means a phenomenal amount of untapped power in your hands! Use MacPilot to unlock over 1,200 features, and access them all... Read more
Sparkle Pro 2.1.4 - $79.99
Sparkle Pro will change your mind if you thought building websites wasn't for you. Sparkle is the intuitive site builder that lets you create sites for your online portfolio, team or band pages, or... Read more
TextSoap 8.3.3 - Automate tedious text d...
TextSoap can automatically remove unwanted characters, fix up messed up carriage returns, and do pretty much anything else that we can think of to text. Save time and effort. Be more productive. Stop... Read more

Failbetter Games details changes coming...
Sunless Sea, Failbetter Games' dark and gloomy sea explorer, sets sail for the iPad tomorrow. Ahead of the game's launch, Failbetter took to Twitter to discuss what will be different in the mobile version of the game. Many of the changes make... | Read more »
Splish, splash! The Pokémon GO Water Fes...
Niantic is back with a new festival for dedicated Pokémon GO collectors. The Water Festival officially kicks off today at 1 P.M. PDT and runs through March 29. Magikarp, Squirtle, Totodile, and their assorted evolved forms will be appearing at... | Read more »
Death Road to Canada (Games)
Death Road to Canada 1.0 Device: iOS Universal Category: Games Price: $7.99, Version: 1.0 (iTunes) Description: Get it now at the low launch price! Price will go up a dollar every major update. Update news at the bottom of this... | Read more »
Bean's Quest Beginner's Guide:...
Bean's Quest is a new take on both the classic platformer and the endless runner, and it's free on the App Store for the time being. Instead of running constantly, you can't stop jumping. That adds a surprising new level of challenge to the game... | Read more »
How to rake in the cash in Bit City
Our last Bit City guide covered the basics. Now it's time to get into some of the more advanced techniques. In the later cities, cash flow becomes much more difficult, so you'll want to develop some strategies if you want to complete each level.... | Read more »
PixelTerra (Games)
PixelTerra 1.1.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.1.1 (iTunes) Description: The world of PixelTerra is quite dangerous so you need to build a shelter, find some food supply and get ready to protect... | Read more »
Tokaido™ (Games)
Tokaido™ 1.0 Device: iOS Universal Category: Games Price: $6.99, Version: 1.0 (iTunes) Description: Discover the digital adaptation of Tokaido, the boardgame phenomenon that has already sold more than 250,000 copies worldwide, and... | Read more »
Card Thief (Games)
Card Thief 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Card Thief is a solitaire style stealth game played with a deck of cards. In Card Thief you move through a deck of cards as a... | Read more »
Smilegate’s crafting battler Super Tank...
Super Tank Rumbleputs you in the seat of your very own, handcrafted tank. You can choose from over 100 different parts to create your Super Tank before taking it out to wreak havoc on your opponents in glorious PVP combat. Now, Smilegate is upping... | Read more »
The best games to play while you wait fo...
Mass Effect: Andromeda arrives this coming Tuesday and people are getting understandably antsy. There's a whole weekend standing between us and a brand new Bioware adventure. What's a geek to do? Well, you could certainly give these fine mobile... | Read more »

Price Scanner via MacPrices.net

13-inch Touch Bar MacBook Pros on sale for up...
B&H Photo has the Apple 13″ Touch Bar MacBook Pros in stock today and on sale for up to $150 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.9GHz/512GB Touch Bar... Read more
Today only! 15-inch 2.7GHz Space Gray Touch B...
B&H Photo has the new 2016 15″ 2.7GHz Space Gray Apple Touch Bar MacBook Pro in stock today and on sale for $300 off MSRP for today only. Shipping is free, and B&H charges NY sales tax only... Read more
New $329 iPad A Fabulous Value; 10.5-Inch iPa...
Part of the iPad upgrade/new model puzzle is now in place. Yesterday, as KGI Securities financial services group analyst Ming-Chi Kuo last summer predicted they would, Apple released a new low-cost 9... Read more
New 9.7-Inch iPad Features All Of The Fun...
Apple today updated its most popular-sized iPad, featuring a brighter 9.7-inch Retina display and best-in-class performance at its most affordable price ever, starting at $329 (US) with 32GB of... Read more
Apple Introduces iPhone 7 and iPhone 7 Plus (...
Apple today announced iPhone 7 and iPhone 7 Plus (PRODUCT)RED Special Edition in a vibrant red matte aluminum finish, in recognition of more than 10 years of partnership between Apple and (RED). This... Read more
Apple now offering Certified Refurbished 15-i...
Apple is now offering Certified Refurbished 2016 15″ Touch Bar MacBook Pros for $360-$420 off original MSRP. An Apple one-year warranty is included with each model, and shipping is free: - 15″ 2.6GHz... Read more
Apple Introduces Clips: A Free Innovative Way...
Apple today introduced Clips, a new app that makes it quick and fun for anyone to create expressive videos on iPhone and iPad. The app features a unique design for combining video clips, photos and... Read more
Urban Armor Gear Unveils Case For 4th Generat...
Orange County, California based Urban Armor Gear (UAG), designers of rugged, lightweight protective cases for phones, tablets and laptops, has released its latest drop-tested cases for Apple’s 4th... Read more
Most Users Continue To Prefer 5.0 to 5.3 Inch...
In the first half of 2016, US and UK smartphone users were most likely to be interested in purchasing a device with a 5.3″ or 5.0″ display. Findings in a new report from the User Experience... Read more
12-inch 1.2GHz Retina MacBooks on sale for up...
B&H has 12″ 1.2GHz Retina MacBooks on sale for up to $200 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 12″ 1.2GHz Space Gray Retina MacBook: $1439.99 $160 off MSRP - 12″ 1... Read more

Jobs Board

*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Fulltime aan de slag als shopmanager in een h...
Ben jij helemaal gek van Apple -producten en vind je het helemaal super om fulltime shopmanager te zijn in een jonge en hippe elektronicazaak? Wil jij werken in Read more
Starte Dein Karriere-Abenteuer in den Hauptst...
…mehrsprachigen Teams betreust Du Kunden von bekannten globale Marken wie Apple , Mercedes, Facebook, Expedia, und vielen anderen! Funktion Du wolltest schon Read more
Starte Dein Karriere-Abenteuer in den Hauptst...
…mehrsprachigen Teams betreust Du Kunden von bekannten globale Marken wie Apple , Mercedes, Facebook, Expedia, und vielen anderen! Funktion Du wolltest schon Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.