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

BitTorrent Sync 2.0.82 - Sync files secu...
BitTorrent Sync allows you to sync unlimited files between your own devices, or share a folder with friends and family to automatically sync anything. File transfers are encrypted. Your information... Read more
Google Drive 1.20 - File backup and shar...
Google Drive is a place where you can create, share, collaborate, and keep all of your stuff. Whether you're working with a friend on a joint research project, planning a wedding with your fiancé, or... Read more
Simon 4.0.3 - Monitor changes and crashe...
Simon monitors websites and alerts you of crashes and changes. Select pages to monitor, choose your alert options, and customize your settings. Simon does the rest. Keep a watchful eye on your... Read more
Vitamin-R 2.23 - Personal productivity t...
Vitamin-R creates the optimal conditions for your brain to work at its best by structuring your work into short bursts of distraction-free, highly focused activity alternating with opportunities for... Read more
iDefrag 5.0.0 - Disk defragmentation and...
iDefrag helps defragment and optimize your disk for improved performance. Features include: Supports HFS and HFS+ (Mac OS Extended). Supports case sensitive and journaled filesystems. Supports... Read more
PCalc 4.2 - Full-featured scientific cal...
PCalc is a full-featured, scriptable scientific calculator with support for hexadecimal, octal, and binary calculations, as well as an RPN mode, programmable functions, and an extensive set of unit... Read more
FileZilla 3.10.2 - Fast and reliable FTP...
FileZilla (ported from Windows) is a fast and reliable FTP client and server with lots of useful features and an intuitive interface. Version 3.10.2: Note: Now requires a 64-bit Intel processor.... Read more
The Hit List 1.1.11 - Advanced reminder...
The Hit List manages the daily chaos of your modern life. It's easy to learn - it's as easy as making lists. And it's powerful enough to let you plan, then forget, then act when the time is right.... Read more
Bartender 1.2.32 - Organize your menu ba...
Bartender lets you organize your menu bar apps. Features: Lets you tidy your menu bar apps how you want. See your menu bar apps when you want. Hide the apps you need to run, but do not need to... Read more
ClamXav 2.7.5 - Free virus checker, base...
ClamXav is a free virus checker for OS X. It uses the tried, tested, and very popular ClamAV open source antivirus engine as a back end. I hope you like and use ClamXav a lot and that it helps keep... Read more

Protect Yourself from an Onslaught of Ca...
Surprise Attack Games has announced a Cat-astrophic new physics puzzler called Fort Meow! In the game, a young girl named Nia finds her grandfather’s journal which triggers an all mighty feline attack! Why do the cats want the journal? Who knows,... | Read more »
GDC 2015 – Jelly Reef will be Game Oven’...
GDC 2015 – Jelly Reef will be Game Oven’s Last Hurrah, and it Seems like a Good Note to Go Out on Posted by Rob Rich on March 4th, 2015 [ permalink ] It’s sad knowing that Game Oven ( | Read more »
daWindci Deluxe Review
daWindci Deluxe Review By Campbell Bird on March 4th, 2015 Our Rating: :: BLUSTERY PUZZLESUniversal App - Designed for iPhone and iPad This updated puzzle game offers some creative gameplay and new mechanics, but still suffers from... | Read more »
Dungeon Hunter 5 Coming on March 12
Gameloft has excitedly announced that Dungeon Hunter 5 is on its way! Once again, you will adventure across the land of Valenthia exploring dungeons and fighting monsters. The game will have a new asynchronous multiplayer mode called Strongholds... | Read more »
GDC 2015 – The Sandbox 2 is Coming, and...
GDC 2015 – The Sandbox 2 is Coming, and Now it has Textures! | Read more »
Warner Bros. Interactive Announces Mort...
Mortal Kombat X, by Warner Bros. and NetherRealm Studios, will be a a free-to-play fighting/card-battle Mortal Kombat game. The game promises card collecting, multiplayer team combat, classic characters such as Scorpion, Sub-Zero and Raiden, and the... | Read more »
GDC 2015 – Piloteer is Whitaker Trebella...
GDC 2015 – Piloteer is Whitaker Trebella’s Latest Project, and it’s Definitely Something DIfferent Posted by Rob Rich on March 3rd, 2015 [ permalink ] You know | Read more »
PangoLand Review
PangoLand Review By Amy Solomon on March 3rd, 2015 Our Rating: :: COME VISIT PANGO AND FRIENDSUniversal App - Designed for iPhone and iPad PangoLand is an open-ended world full of familiar characters, bright colors and interactive... | Read more »
Knights of Pen & Paper is Leveling U...
With the roll of a die and a critical success, Paradox Interactive has announced Knights of Pen & Paper 2! You’ll be taking your place at the table once again in this sequel to Knights of Pen & Paper +1 Edition. The game will introduce the... | Read more »
GDC 2015 – Project Highrise is an Intere...
GDC 2015 – Project Highrise is an Interesting Idea from SomaSim Posted by Rob Rich on March 3rd, 2015 [ permalink ] You might know SomaSim best from their gold rush sim, 1849< | Read more »

Price Scanner via MacPrices.net

Mac Pros on sale for up to $279 off MSRP
Amazon has Mac Pros in stock and on sale for up to $279 off MSRP. Shipping is free: - 4-Core Mac Pro: $2725.87, $273 off MSRP (9%) - 6-Core Mac Pro: $3719.99, $279 off MSRP (7%) Read more
Sale! 13-inch Retina MacBook Pros for up to $...
B&H Photo has 13″ Retina MacBook Pros on sale for up to $205 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.6GHz/128GB Retina MacBook Pro: $1219.99 save $80 - 13″ 2.... Read more
Another Tranche Of IBM MobileFirst For iOS Ap...
IBM has announced the next expansion phase for  its IBM MobileFirst for iOS portfolio, with a troika of new apps to address key priorities for the Banking and Financial Services, Airline and Retail... Read more
Sale! 15-inch Retina MacBook Pros for up to $...
B&H Photo has the new 2014 15″ Retina MacBook Pros on sale for up to $250 off MSRP for a limited time. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $... Read more
WaterField Designs Introduces the Minimalist...
With Apple Pay gaining popularity, Android Pay coming in May 2015, and loyalty cards and receipts that can be accessed from smartphones, San Francisco’s WaterField Designs observes that it may be... Read more
Sale! 15-inch 2.2GHz Retina MacBook Pro for $...
 Best Buy has the 15″ 2.2GHz Retina MacBook Pro on sale for $1774.99 $1799.99, or $225 off MSRP. Choose free home shipping or free local store pickup (if available). Price valid for online orders... Read more
13-inch 2.5GHz MacBook Pro (refurbished) avai...
The Apple Store has Apple Certified Refurbished 13″ 2.5GHz MacBook Pros available for $170 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free: - 13″ 2.5GHz... Read more
13-inch 2.5GHz MacBook Pro on sale for $100 o...
B&H Photo has the 13″ 2.5GHz MacBook Pro on sale for $999.99 including free shipping plus NY sales tax only. Their price is $100 off MSRP. Read more
27-inch 3.5GHz 5K iMac in stock today and on...
 B&H Photo has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2299 including free shipping plus NY sales tax only. Their price is $200 off MSRP, and it’s the lowest price available for... Read more
Apple Launches Free Web-Based Pages and Other...
Apple’s new Web-only access to iWork productivity apps is a free level of iCloud service available to anyone, including people who don’t own or use Apple devices. The service includes access to Apple... 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* Pay Automation Engineer - iOS System...
**Job Summary** At Apple , great ideas have a way of becoming great products, services, and customer experiences very quickly. Bring passion and dedication to your job Read more
Sr. Technical Services Consultant, *Apple*...
**Job Summary** Apple Professional Services (APS) has an opening for a senior technical position that contributes to Apple 's efforts for strategic and transactional Read more
Event Director, *Apple* Retail Marketing -...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global engagement strategy and team. Delivering an overarching brand Read more
*Apple* Pay - Site Reliability Engineer - Ap...
**Job Summary** Imagine what you could do here. At Apple , great ideas have a way of becoming great products, services, and customer experiences very quickly. Bring Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.