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

 
AAPL
$103.30
Apple Inc.
+0.80
MSFT
$45.09
Microsoft Corpora
-0.34
GOOG
$577.33
Google Inc.
+5.73

MacTech Search:
Community Search:

Software Updates via MacUpdate

TextSoap 7.4.0 - Flexible text editing u...
TextSoap is for people who work with text. TextSoap effortlessly cleans up text from endlessly different formats. Wash away unwanted characters, spaces, tabs. Fix paragraphs with hard returns at the... Read more
NetShade 6.0.2 - Browse privately using...
NetShade is an Internet security tool that conceals your IP address on the web. NetShade routes your Web connection through either a public anonymous proxy server, or one of NetShade's own dedicated... Read more
Mac DVDRipper Pro 5.0 - Copy, backup, an...
Mac DVDRipper Pro is the DVD backup solution that lets you protect your DVDs from scratches, save your batteries by reading your movies from your hard disk, manage your collection with just a few... Read more
pwSafe 3.1 - Secure password management...
pwSafe provides simple and secure password management across devices and computers. pwSafe uses iCloud to keep your password databases backed-up and synced between Macs and iOS devices. It is... Read more
StatsBar 1.8 - Monitor system processes...
StatsBar gives you a comprehensive and detailed analysis of the following areas of your Mac: CPU usage Memory usage Disk usage Network and bandwidth usage Battery power and health (MacBooks only)... Read more
Path Finder 6.5.5 - Powerful, award-winn...
Path Finder is a file browser that combines the familiar Finder interface with the powerful utilities and innovative features. Just a small selection of the Path Finder 6 feature set: Dual pane... Read more
QuarkXPress 10.2.1 - Desktop publishing...
With QuarkXPress, you can communicate in all the ways you need to -- and always look professional -- in print and digital media, all in a single tool. Features include: Easy to Use -- QuarkXPress is... Read more
Skype 6.19.0.450 - Voice-over-internet p...
Skype allows you to talk to friends, family and co-workers across the Internet without the inconvenience of long distance telephone charges. Using peer-to-peer data transmission technology, Skype... Read more
Capo 3.1.2 - Slow down and learn to play...
Capo lets you slow down your favorite songs so you can hear the notes and learn how they are played. With Capo, you can quickly tab out your songs atop a highly-detailed OpenCL-powered spectrogram... Read more
VueScan 9.4.41 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more

Latest Forum Discussions

See All

Modern Combat 5 Gets a Major Multiplayer...
Modern Combat 5 Gets a Major Multiplayer Update Posted by Jessica Fisher on September 2nd, 2014 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Alien Creeps TD Review
Alien Creeps TD Review By Jennifer Allen on September 2nd, 2014 Our Rating: :: EXPENSIVE DEFENSESUniversal App - Designed for iPhone and iPad Alien Creeps TD would be a fun if unremarkable Tower Defense game, but its heavy focus on... | Read more »
The Journey Down: Chapter Two Review
The Journey Down: Chapter Two Review By Jennifer Allen on September 2nd, 2014 Our Rating: :: DARK YET ENTICINGUniversal App - Designed for iPhone and iPad It’s a little dark, in every sense of the word, but The Journey Down:... | Read more »
Function Space, a Social Network App for...
Function Space, a Social Network App for Science, Launches on iOS Posted by Ellis Spice on September 2nd, 2014 [ permalink ] | Read more »
Stupidfast – How Taylor Martinez Switche...
How do you make an Endless Running game more than just another Endless Running game? By adding real life prizes to it, of course! That’s the thinking behind StupidFast: a game designed for football enthusiasts, and the brainchild of former college... | Read more »
Little Raiders: Robin’s Revenge Review
Little Raiders: Robin’s Revenge Review By Jennifer Allen on September 2nd, 2014 Our Rating: :: CASUAL RAIDINGUniversal App - Designed for iPhone and iPad Combining simple combat with village building is a potent combination for... | Read more »
Treasure Tombs: Ra Deal Coming from Bulk...
Treasure Tombs: Ra Deal Coming from Bulkypix and Dark Tonic This Fall Posted by Jessica Fisher on September 2nd, 2014 [ permalink ] Dark Tonic and | Read more »
Pirate Bash Review
Pirate Bash Review By Nadia Oxford on September 2nd, 2014 Our Rating: :: BAD PIRATES, GOOD TIMESUniversal App - Designed for iPhone and iPad Pirate Bash’s turn-based battles add an intriguing twist to a typical physics game.   | Read more »
Tiny Tower Vegas Review
Tiny Tower Vegas Review By Jennifer Allen on September 2nd, 2014 Our Rating: :: STEADY DEVELOPMENTUniversal App - Designed for iPhone and iPad Build a huge tower again but Vegas-style in Tiny Tower Vegas.   | Read more »
The Manhattan Project Review
The Manhattan Project Review By Andrew Fisher on September 2nd, 2014 Our Rating: :: ROCKET SCIENCEUniversal App - Designed for iPhone and iPad The Manhattan Project offers a great Euro-style gameplay experience, but it is totally... | Read more »

Price Scanner via MacPrices.net

Apple refurbished iPads available for up to $...
Apple is offering Certified Refurbished iPad Airs for up to $140 off MSRP. Apple’s one-year warranty is included with each model, and shipping is free. Stock tends to come and go with some of these... Read more
Are We Now In The Post-Post-PC Era?
A longtime and thoroughgoing laptop aficionado, I was more than a little dismayed by Steve Jobs’s declaration back in 2010 when he sprang the iPad on an unsuspecting world. that we’d entered a “post-... Read more
PC Outlook Improves, But 2014 Shipments Still...
According to the International Data Corporation (IDC) Worldwide Quarterly PC Tracker, worldwide PC shipments are expected to fall by -3.7 percent in 2014. To hat’s actually an improvement from the... Read more
IDC Lowers Tablet Sales Projections for 2014...
Following a second consecutive quarter of softer than expected demand, International Data Corporation (IDC) has lowered its worldwide tablet plus 2-in-1 forecast for 2014 to 233.1 million units. The... Read more
Apple now offering refurbished 21-inch 1.4GHz...
The Apple Store is now offering Apple Certified Refurbished 21″ 1.4GHz iMacs for $929 including free shipping plus Apple’s standard one-year warranty. Their price is $170 off the cost of new models,... Read more
Save $50 on the 2.5GHz Mac mini, on sale for...
B&H Photo has the 2.5GHz Mac mini on sale for $549.99 including free shipping. That’s $50 off MSRP, and B&H will also include a free copy of Parallels Desktop software. NY sales tax only. Read more
Save up to $300 on an iMac with Apple refurbi...
The Apple Store has Apple Certified Refurbished iMacs available for up to $300 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free. These are the best prices on... Read more
The Rise of Phablets
Carlisle & Gallagher Consulting Group, a businesses and technology consulting firm focused solely on the financial services industry, has released an infographic depicting the convergence of... Read more
Bad Driver Database App Allows Good Drivers t...
Bad Driver Database 1.4 by Facile Group is a new iOS and Android app that lets users instantly input and see how many times a careless, reckless or just plain stupid driver has been added to the... Read more
Eddy – Cloud Music Player for iPhone/iPad Fre...
Ukraine based CapableBits announces the release of Eddy, its tiny, but smart and powerful cloud music player for iPhone and iPad that allows users to stream or download music directly from cloud... Read more

Jobs Board

*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
*Apple* Retail - Multiple Positions (US) - A...
Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, you're also the Read more
Senior Event Manager, *Apple* Retail Market...
…This senior level position is responsible for leading and imagining the Apple Retail Team's global event strategy. Delivering an overarching brand story; in-store, Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.