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

Is there cross-platform play in slither....
So you've sunken plenty of hours into crawling around in slither.io on your iPhone or iPad. You've got your stories of tragedy and triumph, the times you coiled four snakes at one time balanced out by the others when you had a length of more than... | Read more »
Rodeo Stampede guide to running a better...
In Rodeo Stampede, honing your skills so you can jump from animal to animal and outrun the herd as long as possible is only half the fun. Once you've tamed a few animals, you can bring them home with you. [Read more] | Read more »
VoxSyn (Music)
VoxSyn 1.0 Device: iOS Universal Category: Music Price: $6.99, Version: 1.0 (iTunes) Description: VoxSyn turns your voice into the most flexible vocal sound generator ever. Instantly following even subtle modulations of pitch and... | Read more »
Catch Battleplans on Google Play from Ju...
Real-time strategy title Battleplans is due for release on Google Play on June 30th, following its release for iOS systems last month. With its simple interface and pretty graphics, the crowd-pleaser brings a formerly overlooked genre out for the... | Read more »
iDoyle: The interactive Adventures of Sh...
iDoyle: The interactive Adventures of Sherlock Holmes - A Scandal in Bohemia 1.0 Device: iOS Universal Category: Books Price: $1.99, Version: 1.0 (iTunes) Description: Special Release Price $1.99 (Normally $3.99) | Read more »
Five popular free apps to help you slim...
Thanks to retail and advertising, we're used to thinking one season ahead. Here we are just a week into the summer and we're conditioned to start thinking about the fall. [Read more] | Read more »
How to ride longer and tame more animals...
It's hard to accurately describe Rodeo Stampede to people who haven't seen it yet. It's like if someone took Crossy Roadand Disco Zoo and put them in a blender, yet with a unique game mechanic that's still simple and fun for anyone. [Read more] | Read more »
Teeny Titans - A Teen Titans Go! Figure...
Teeny Titans - A Teen Titans Go! Figure Battling Game 1.0.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.0.0 (iTunes) Description: Teeny Titans, GO! Join Robin for a figure battling RPG of epic proportions! TEENY... | Read more »
NinjAwesome: Tips and tricks to be a mor...
Sorry about that headline, but I'm going to go ahead and assume that GameResort would not have named its game NinjAwesome without expecting some of that. It is, in fact, pretty awesome the way it combines an endless runner and old school arcade... | Read more »
Into Mirror (Games)
Into Mirror 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: "Is all that we see or seem, but a dream within a dream?"- Edgar Allan Poe New game by Lemon Jam Studio, the team behind Pursuit... | Read more »

Price Scanner via MacPrices.net

15-inch Retina MacBook Pros on sale for $200-...
B&H Photo has 15″ Retina MacBook Pros on sale for up to $210 off MSRP. Shipping is free, and B&H charges NY tax only: - 15″ 2.2GHz Retina MacBook Pro: $1799.99 $200 off MSRP - 15″ 2.5GHz... Read more
Mac minis on sale for up to $100 off MSRP
B&H Photo has Mac minis on sale for up to $100 off MSRP including free shipping plus NY sales tax only: - 1.4GHz Mac mini: $449 $50 off MSRP - 2.6GHz Mac mini: $649 $50 off MSRP - 2.8GHz Mac mini... Read more
Clearance 2015 13-inch MacBook Airs available...
B&H Photo has clearance 2015 13″ MacBook Airs available for $300 off original MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 1.6GHz/4GB/128GB MacBook Air (MJVE2LL/A): $799.... Read more
Apple refurbished Mac minis available for up...
Apple has Certified Refurbished Mac minis available starting at $419. Apple’s one-year warranty is included with each mini, and shipping is free: - 1.4GHz Mac mini: $419 $80 off MSRP - 2.6GHz Mac... Read more
ABBYY TextGrabber: 1,000,000 Installs in 5 Da...
ABBYY, an international OCR technologies provider, has announced that their image-to-text application TextGrabber, got installed 1,000,000 times in just five days while being featured by the App... Read more
New SkinIt Waterproof Case For iPhone 6
With its impact and waterproof design, the Skinit Waterproof case provides security and protection to guarantee your phone will get you through even the most demanding outdoor conditions. The impact-... Read more
iMacs on sale for up to $150 off MSRP
B&H Photo has 21″ and 27″ iMacs on sale for up to $150 off MSRP including free shipping plus NY sales tax only: - 27″ 3.3GHz iMac 5K: $2181.11 $118 off MSRP - 27″ 3.2GHz/1TB Fusion iMac 5K: $1949... Read more
12-inch 1.1GHz Retina MacBooks on sale for $5...
B&H Photo has 2016 12″ 1.1GHz/256GB Retina MacBooks on sale for up to $50 off MSRP. Shipping is free, and B&H charges NY tax only: - 12″ 1.1GHz Space Gray Retina MacBook: $1249 $50 off MSRP... Read more
WWDC Announcements Revisited Still Underwhelm...
I was disappointed that no new MacBook hardware was announced at this year’s all-software World Wide Developer’s Conference. Not even a hint about what’s in the development pipeline. Of course, we... Read more
Twelve South Compass 2 iPad Stand Now Availab...
Twelve South has updated its most popular iPad stand, Compass 2, with the introduction of two new colors — Gold and Rose Gold. These new color options n perfectly complement the new Rose Gold iPad... Read more

Jobs Board

*Apple* iPhone 6s and New Products Tester Ne...
…we therefore look forward to put out products to quality test for durability. Apple leads the digital music revolution with its iPods and iTunes online store, Read more
Music Marketing Lead, iTunes & *Apple*...
…Music Marketing Lead is responsible for developing robust marketing campaigns and programs for Apple Music and iTunes across the whole of Apple ecosystem. This Read more
*Apple* Valley Medical Clinic is Hiring - AP...
Apple Valley Medical Clinic is Hiring! Apple Valley Medical Clinic is an independently owned practice operating a Family Medicine Clinic, a 24/7 Urgent Care, Read more
*Apple* New Products Testers Needed - Apple...
…we therefore look forward to put out products to quality test for durability. Apple leads the digital music revolution with its iPods and iTunes online store, Read more
*Apple* Solutions Consultant - APPLE (United...
Job Summary As an Apple Solutions Consultant, you'll be the link between our future customers and our products. You'll showcase your entrepreneurial spirit as you Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.