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

OmniOutliner Pro 4.2 - Pro version of th...
OmniOutliner Pro is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
VLC Media Player 2.2.1 - Popular multime...
VLC Media Player is a highly portable multimedia player for various audio and video formats (MPEG-1, MPEG-2, MPEG-4, DivX, MP3, OGG, ...) as well as DVDs, VCDs, and various streaming protocols. It... Read more
Nisus Writer Pro 2.1.1 - Multilingual wo...
Nisus Writer Pro is a powerful multilingual word processor, similar to its entry level products, but brings new features such as table of contents, indexing, bookmarks, widow and orphan control,... Read more
Tinderbox 6.2.0 - Store and organize you...
Tinderbox is a personal content management assistant. It stores your notes, ideas, and plans. It can help you organize and understand them. And Tinderbox helps you share ideas through Web journals... Read more
OmniOutliner 4.2 - Organize your ideas,...
OmniOutliner is a flexible program for creating, collecting, and organizing information. Give your creativity a kick start by using an application that's actually designed to help you think. It's... Read more
Things 2.5.4 - Elegant personal task man...
Things is a task management solution that helps to organize your tasks in an elegant and intuitive way. Things combines powerful features with simplicity through the use of tags and its intelligent... Read more
NeoOffice 2014.10 - Mac-tailored, OpenOf...
NeoOffice is a complete office suite for OS X. With NeoOffice, users can view, edit, and save OpenOffice documents, PDF files, and most Microsoft Word, Excel, and PowerPoint documents. NeoOffice 3.x... Read more
iPhoto Library Manager 4.2 - Manage mult...
iPhoto Library Manager allows you to organize your photos among multiple iPhoto libraries, rather than having to store all of your photos in one giant library. You can browse the photos in all your... Read more
Web Snapper 3.3.8 - Capture entire Web p...
Web Snapper lets you capture Web pages exactly as they appear in your browser. You can send them to a file as images or vector-based, multi-page PDFs. It captures the whole Web page - eliminating the... Read more
TeamViewer 10.0.41404 - Establish remote...
TeamViewer gives you remote control of any computer or Mac over the Internet within seconds, or can be used for online meetings. Find out why more than 200 million users trust TeamViewer! Free for... Read more

Chainsaw Warrior: Lords of the Night has...
It's time to put the Darkness back in its place now that Chainsaw Warrior: Lords of the Night has officially made it to iOS. | Read more »
A World of Ice and Fire Lets You Stalk 2...
George R. R. Martin’s A World of Ice and Fire, by Random House, is a mobile guide to the epic series. The new update gives you the Journeys map feture that will let you track the movements of 25 different characters. But don't worry, you can protect... | Read more »
Gameloft Announces Battle Odyssey, a New...
Battle Odyssey, Gameloft's newest puzzle RPG, is coming to the App Store next week. Set in the world of Pondera, you will need to control the power of the elements to defend the world from evil. You'll be able to entlist over 500 allies to aid you... | Read more »
Fusion - HDR Camera (Photography)
Fusion - HDR Camera 1.0.0 Device: iOS Universal Category: Photography Price: $1.99, Version: 1.0.0 (iTunes) Description: Fusion creates HDR (high dynamic range) photos by capturing different exposures and then combining them into one... | Read more »
Sago Mini Toolbox (Education)
Sago Mini Toolbox 1.1 Device: iOS Universal Category: Education Price: $2.99, Version: 1.1 (iTunes) Description: Come build with the Sago Mini friends! Use a wrench, try a saw, or hammer some nails. From sewing hand puppets to... | Read more »
You Should Probably Grab Hitman GO While...
Hitman GO is a surprisingly cool (yet also incredibly drastic) departure from the Hitman series. It's well worth playing for any puzzle game fans out there, and at the moment you can get your hands - or garrotte if you will - on it for a mere $0.99... | Read more »
IFTTT is Bringing Do Button and Do Note...
IFTTT has announced Do Button and Do Note for the Apple Watch. Do Button lets you make your own personalized button that can connect to things like your Google Drive, control the temperature in your home with Nest Thermostat, or turn the lights on... | Read more »
How Many Days, Hours, and Minutes Are Le...
Countdown, by Yves Tscherry, is now available on the App Store. The app keeps track of countdowns to your favorite things such as someones birthday or days till the New Year. You can display the time in seconds, minutes, hours, days, weeks, months,... | Read more »
The All-New Misfit 2.0 App is Available...
Misfit has just given their app a complete overhaul. Misfit 2.0 now has a brand new interface with a sleek design and is easier to navigate. You'll be able to sync your Misfit device and look up health and fitness information faster than ever before... | Read more »
Halo: Spartan Strike (Games)
Halo: Spartan Strike 1.0 Device: iOS Universal Category: Games Price: $5.99, Version: 1.0 (iTunes) Description: Delve into 30 challenging missions through cities and jungles using a devastating arsenal of weapons, abilities and... | Read more »

Price Scanner via MacPrices.net

TigerText Introduces First Secure Enterprise...
TigerText, a provider of secure, real-time messaging for the enterprise, has announced the launch of TigerText for the Apple Watch. TigerText for the Apple Watch enables users to securely send and... Read more
The Conservation Fund Partners with Apple To...
The Conservation Fund has announced that it will partner with Apple to help protect working forests in the United States. The Apple initiative will conserve more than 36,000 acres of working... Read more
Clearance 13-inch 2.6GHz Retina MacBook Pro a...
B&H Photo has clearance 2014 13″ 2.6GHz/128GB Retina MacBook Pros now available for $1099, or $200 off original MSRP. Shipping is free, and B&H charges NY sales tax only. Read more
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
iMacs on sale for up to $205 off MSRP, NY tax...
B&H Photo has 21″ and 27″ iMacs on sale for up to $205 off MSRP including free shipping plus NY sales tax only: - 21″ 1.4GHz iMac: $1019 $80 off - 21″ 2.7GHz iMac: $1189 $110 off - 21″ 2.9GHz... Read more
Sale! 16GB iPhone 5S for $1 with service
Best Buy is offering 16GB iPhone 5Ss for $1.00 with 2-year activation at a participating cellular provider. Choose free home shipping and activation, or buy online and activate during in-store pickup... Read more
Apple refurbished 2014 MacBook Airs available...
The Apple Store has Apple Certified Refurbished 2014 MacBook Airs available starting at $679. An Apple one-year warranty is included with each MacBook, and shipping is free. These are currently the... Read more
27-inch 3.5GHz 5K iMac on sale for $2349, sav...
 Adorama has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2349 including free shipping plus NY & NJ sales tax only. Their price is $150 off MSRP. For a limited time, Adorama will... Read more
Save up to $380 on an iMac with Apple refurbi...
The Apple Store has Apple Certified Refurbished iMacs available for up to $380 off the cost of new models. Apple’s one-year warranty is standard, and shipping is free: - 27″ 3.5GHz 5K iMac – $2119 $... Read more
iFixIt Teardown Awards 12-IInch Retina MacBoo...
iFixIt has posted its illustrated teardown of the new 12-inch MacBook Retina. They note that this new MacBook is less than half the thickness of the last Apple notebook called just “MacBook” back in... 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* 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
*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* 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
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.