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

BBEdit 11.1.1 - Powerful text and HTML e...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more
CrossOver 14.1.3 - Run Windows apps on y...
CrossOver can get your Windows productivity applications and PC games up and running on your Mac quickly and easily. CrossOver runs the Windows software that you need on Mac at home, in the office,... Read more
Little Snitch 3.5.3 - Alerts you about o...
Little Snitch gives you control over your private outgoing data. Track background activity As soon as your computer connects to the Internet, applications often have permission to send any... Read more
OmniGraffle Pro 6.2.3 - Create diagrams,...
OmniGraffle Pro helps you draw beautiful diagrams, family trees, flow charts, org charts, layouts, and (mathematically speaking) any other directed or non-directed graphs. We've had people use... Read more
OmniFocus 2.2 - GTD task manager with iO...
OmniFocus helps you manage your tasks the way that you want, freeing you to focus your attention on the things that matter to you most. Capturing tasks and ideas is always a keyboard shortcut away in... Read more
Cocktail 8.4 - General maintenance and o...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
PDFKey Pro 4.3 - Edit and print password...
PDFKey Pro can unlock PDF documents protected for printing and copying when you've forgotten your password. It can now also protect your PDF files with a password to prevent unauthorized access and/... Read more
Kodi 15.0.beta1 - Powerful media center...
Kodi (was XBMC) is an award-winning free and open-source (GPL) software media player and entertainment hub that can be installed on Linux, OS X, Windows, iOS, and Android, featuring a 10-foot user... Read more
DiskCatalogMaker 6.4.12 - Catalog your d...
DiskCatalogMaker is a simple disk management tool which catalogs disks. Simple, light-weight, and fast. Finder-like intuitive look and feel. Super-fast search algorithm. Can compress catalog data... Read more
Macs Fan Control 1.3.0.0 - Monitor and c...
Macs Fan Control allows you to monitor and control almost any aspect of your computer's fans, with support for controlling fan speed, temperature sensors pane, menu-bar icon, and autostart with... Read more

Moleskine Timepage – Calendar for iCloud...
Moleskine Timepage – Calendar for iCloud, Google & Exchange 1.0 Device: iOS iPhone Category: Productivity Price: $4.99, Version: 1.0 (iTunes) Description: The most elegant calendar for your pocket and wrist, Timepage is a... | Read more »
QuizUp Gets Social in its New Update
Plain Vanilla Corp has released a new and improved version of their popular trivia game, QuizUp. The app now emphasizes social play so you can challenge friends from all over the world. [Read more] | Read more »
The Deep (Games)
The Deep 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Swipe Controls Delve into the deep in this retro rogue-like! Swipe to move your diver around and keep away from the enemies as you... | Read more »
Battle of Gods: Ascension (Games)
Battle of Gods: Ascension 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: TURN-BASED TACTICAL COMBATFight tactical battles against the forces of Hades! In Battle of Gods: Ascension you play... | Read more »
Shadowmatic's Latest Update Adds a...
Shadowmatic's shadowy shadow-ness is getting a little shadowy-er thanks to a recent update that adds an Arcade Mode. [Read more] | Read more »
Sunrise Calendar and Slack Have Assimila...
Wunderlist is perhaps one of the most populat and beloved productivity apps on the App Store - and now it's gone and incorporated itself into other useful services like Sunrise Calendar and Slack. [Read more] | Read more »
Crossy Road Devs Hipster Whale are Bring...
Hipster Whale, the minds behind the rather popular (and rather great) Crossy Road, have teamed-up with Bandai Namco to create PAC-MAN 256: an absolutely bonkers looking maze runner chaser thing. | Read more »
Meet the New Spotify Music
Spotify Music  has a lot going on. They're introducing 3 new modes to serve all your musical needs, with the "Now" start page  gives you curated playlists based on your particular tastes. As you listen the app will learn more about your tastes and... | Read more »
What the Apple Watch Gets Right, and Wha...
| Read more »
Celebrate PAC-MAN's 35th Birthday W...
BANDAI NAMCO Entertainment America is celebrating PAC-MAN's 35th anniversary by releasing updates for PAC-MAN and PAC-MAN Lite for iOS. [Read more] | Read more »

Price Scanner via MacPrices.net

Apple refurbished 2014 13-inch Retina MacBook...
The Apple Store has Apple Certified Refurbished 2014 13″ Retina MacBook Pros available for up to $400 off original MSRP, starting at $979. An Apple one-year warranty is included with each model, and... Read more
What Would the ideal Apple Productivity Platf...
For the past four years I’ve kept a foot in both the Mac and iPad camps respectively. my daily computing hours divided about 50/50 between the two devices with remarkable consistency. However, there’... Read more
PageMeUp 1.2.1 Ten Dollar Page Layout Applica...
Paris, France-based Softobe, an OS X software development company, has announced that their PageMeUp v. 1.2.1, is available on the Mac App Store for $9.99. The license can be installed on up to 5... Read more
Eight New Products For USB Type-C Application...
Fresco Logic, specialists in advanced connectivity technologies and ICs, has introduced two new product families targeting the Type-C connector recently introduced across a number of consumer... Read more
Scripps National Spelling Bee Launches Buzzwo...
Scripps National Spelling Bee fans can monitor the action at the 2015 Spelling Bee with the new Buzzworthy app for iOS, Android and Windows mobile devices. The free Buzzworthy app provides friendly... Read more
13-inch 2.5GHz MacBook Pro on sale for $120 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $979 including free shipping plus NY sales tax only. Their price is $120 off MSRP, and it’s the lowest price for this model (except for Apple’... Read more
27-inch 3.3GHz 5K iMac on sale for $1899, $10...
B&H Photo has the new 27″ 3.3GHz 5K iMac on sale for $1899.99 including free shipping plus NY tax only. Their price is $100 off MSRP. Read more
Save up to $50 on iPad Air 2, NY tax only, fr...
B&H Photo has iPad Air 2s on sale for up to $50 off MSRP including free shipping plus NY sales tax only: - 16GB iPad Air 2 WiFi: $469 $30 off - 64GB iPad Air 2 WiFi: $549.99 $50 off - 128GB iPad... Read more
Updated Mac Price Trackers
We’ve updated our Mac Price Trackers with the latest information on prices, bundles, and availability on systems from Apple’s authorized internet/catalog resellers: - 15″ MacBook Pros - 13″ MacBook... Read more
New 13-inch 2.9GHz Retina MacBook Pro on sale...
B&H Photo has the 13″ 2.9GHz/512GB Retina MacBook Pro on sale for $1699.99 including free shipping plus NY tax only. Their price is $100 off MSRP, and it’s the lowest price for this model from... Read more

Jobs Board

*Apple* Solutions Consultant - Retail Sales...
**Job Summary** As an Apple Solutions Consultant (ASC) you are the link between our customers and our products. Your role is to drive the Apple business in a retail Read more
*Apple* Watch SW Application Project Manager...
**Job Summary** The Apple Watch software team is looking for an Application Engineering Project Manager to work on new projects for Apple . The successful candidate Read more
Engineering Manager for *Apple* Maps on the...
…the Maps App Team get to take part in just about any new feature in Apple Maps, often contributing a majority of the feature work. In our day-to-day engineering work, we Read more
Senior Software Engineer - *Apple* SIM - Ap...
Changing the world is all in a day039s work at Apple . If you love innovation, here039s your chance to make a career of it. You039ll work hard. But the job comes with Read more
Lead *Apple* Solutions Consultant - Retail...
**Job Summary** Job Summary The Lead ASC is an Apple employee who serves as the Apple business manager and influencer in a hyper-business critical Reseller's store Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.