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

Apple Remote Desktop 3.8 - Remotely cont...
Apple Remote Desktop is the best way to manage the Mac computers on your network. Distribute software, provide real-time online help to end users, create detailed software and hardware reports, and... Read more
NeoOffice 2014.7 - Mac-tailored, OpenOff...
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
DesktopLyrics 2.6.6 - Displays current i...
DesktopLyrics is an application that displays the lyrics of the song currently playing in "iTunes" right on your desktop. The lyrics for the song have to be set in iTunes; DesktopLyrics does nothing... Read more
Ember 1.8.3 - Versatile digital scrapboo...
Ember (formerly LittleSnapper) is your digital scrapbook of things that inspire you: websites, photos, apps or other things. Just drag in images that you want to keep, organize them into relevant... Read more
Apple iTunes 12.1 - Manage your music, m...
Apple iTunes lets you organize and play digital music and video on your computer. It can automatically download new music, app, and book purchases across all your devices and computers. And it's a... Read more
LibreOffice 4.4.3 - Free, open-source of...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
FoldersSynchronizer 4.2.1 - Synchronize...
FoldersSynchronizer is a popular and useful utility that synchronizes and backs-up files, folders, disks and boot disks. On each session you can apply special options like Timers, Multiple Folders,... Read more
Simon 4.0.2 - 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
Cocktail 8.1.2 - General maintenance and...
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
Cyberduck 4.6.4 - FTP and SFTP browser....
Cyberduck is a robust FTP/FTP-TLS/SFTP browser for the Mac whose lack of visual clutter and cleverly intuitive features make it easy to use. Support for external editors and system technologies such... Read more

Playworld Superheroes Review
Playworld Superheroes Review By Tre Lawrence on January 30th, 2015 Our Rating: :: HERO CRAFTINGUniversal App - Designed for iPhone and iPad It’s all about the imagination, fighting bad creatures — and looking good while doing so.   | Read more »
Join the SpongeBob Bubble Party in this...
Join the SpongeBob Bubble Party in this New Match 3 Bubble Poppin’ Frenzy Posted by Jessica Fisher on January 30th, 2015 [ permalink ] | Read more »
Handpick Review
Handpick Review By Jennifer Allen on January 30th, 2015 Our Rating: :: TANTALIZING SUGGESTIONSiPhone App - Designed for the iPhone, compatible with the iPad Handpick will make you hungry, as well as inspire you to cook something... | Read more »
Storm the Halls of Echo Base in First St...
Storm the Halls of Echo Base in First Star Wars: Galactic Defense Event Posted by Jessica Fisher on January 30th, 2015 [ permalink ] Universal App - Designed for iPhone and iPad | Read more »
Contradiction Review
Contradiction Review By Tre Lawrence on January 30th, 2015 Our Rating: :: SPOT THE LIEiPad Only App - Designed for the iPad Contradiction is a live action point and click adventure that’s pretty engaging.   Developer: Tim Follin... | Read more »
Unlock Sunshine Girl in Ironkill with th...
Unlock Sunshine Girl in Ironkill with this special 148Apps code Posted by Rob Rich on January 29th, 2015 [ permalink ] Robo-fighter Ironkill has been out on iOS a | Read more »
Crossroad Zombies Review
Crossroad Zombies Review By Jordan Minor on January 29th, 2015 Our Rating: :: CROSSWALKING DEADiPad Only App - Designed for the iPad Crossroad Zombies is a rough draft of a cool genre mash-up.   | Read more »
Blood Brothers 2 – Tips, Cheats, and Str...
War is hell: Is it the kind of hell you want to check out? Read our Blood Brothers 2 review to find out! Blood Brothers 2, DeNA’s follow-up to the original Blood Brothers, is an intriguing card collecting / role-playing / strategy hybrid. There’s... | Read more »
Blood Brothers 2 Review
Blood Brothers 2 Review By Nadia Oxford on January 29th, 2015 Our Rating: :: AN AGGRAVATING RELATIVEUniversal App - Designed for iPhone and iPad Blood Brothers 2 is built on a simple, solid foundation, but its free-to-play system... | Read more »
I AM BREAD, the Toast of the Town, is Ro...
Have you ever dreamt of being deliciously gluten-y? Do you feel passionate about Rye and Wheat? The guys at Bossa Studios do and that is why they are bringing I AM BREAD to iOS soon. The loafy app will feature all the new content that is being... | Read more »

Price Scanner via MacPrices.net

Amazon offers 15-inch 2.2GHz Retina MacBook P...
 Amazon.com has the 15″ 2.2GHz Retina MacBook Pro on sale for $1879 including free shipping. Their price is $120 off MSRP, and it’s the lowest price available for this model from any reseller (except... Read more
Intel Aims to Transform Workplace With 5th-Ge...
Intel Corporation today announced the availability of its 5th generation Intel Core vPro processor family that provides cutting-edge features to enable a new and rapidly shifting workplace. To meet... Read more
iOS App Sharalike Introduces New Instant Smar...
Sharalike slideshow and photo management software for iOS, is making it easier than ever to create shareable meaningful moments with its new instant SmartShow technology. Staying organized is a goal... Read more
Apple Becomes World’s Largest Smartphone Vend...
According to the latest research data from Strategy Analytics, as global smartphone shipments grew 31 percent annually to reach a record 380 million units in the fourth quarter of 2014. Apple became... Read more
Cut the Cord: OtterBox Resurgence Power Case...
Dead batteries and broken phones are two of the biggest issues for smartphone users today. Otterbox addresses both with the new Resurgence Power Case for Apple iPhone 6, promising to make those panic... Read more
13-inch Retina MacBook Pros on sale for up to...
B&H Photo has 13″ Retina MacBook Pros on sale for $200 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.6GHz/128GB Retina MacBook Pro: $1199.99 save $100 - 13″ 2.6GHz/... Read more
15-inch 2.5GHz Retina MacBook Pro on sale for...
 B&H Photo has the 15″ 2.5GHz Retina MacBook Pro on sale for $2319.99 including free shipping plus NY sales tax only. Their price is $180 off MSRP, and it’s the lowest price available for this... Read more
Back in stock: Refurbished iPod nanos for $99...
The Apple Store has Apple Certified Refurbished 16GB iPod nanos available for $99 including free shipping and Apple’s standard one-year warranty. That’s $50 off the cost of new nanos. Most colors are... Read more
Apple lowers price on refurbished 256GB MacBo...
The Apple Store has lowered prices on Apple Certified Refurbished 2014 MacBook Airs with 256GB SSDs, now available for up to $200 off the cost of new models. An Apple one-year warranty is included... Read more
New Good Management Suite Simplifies Enterpri...
Good Technology has announced the availability of the Good Management Suite, a comprehensive cross-platform solution for organizations getting started with mobile business initiatives. Built on the... Read more

Jobs Board

At-Home Chat Specialist- *Apple* Online Stor...
**Job Summary** At Apple , we believe in hard work, a fun environment, and the kind of creativity and innovation that only comes about when talented people from diverse Read more
Sr. Mac Expert- *Apple* Online Store - Apple...
**Job Summary** The World Wide Apple Online Store (AOS) Sales and Service team is looking for motivated, outgoing, and tech savvy individuals who want to offer Apple Read more
*Apple* Solutions Consultant- Retail Sales (...
**Job Summary** The ASC is an Apple employee who serves as an Apple brand ambassador and influencer in a Reseller's store. The ASC's role is to grow Apple 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
At-Home Chat Specialist- *Apple* Online Stor...
**Job Summary** At Apple , we believe in hard work, a fun environment, and the kind of creativity and innovation that only comes about when talented people from diverse Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.