Greg's Bite: The Self-Cannibalism Effect at Apple
TweetFollow Us on Twitter

Greg's Bite: The Self-Cannibalism Effect at Apple

By Greg Mills

Apple has a uncanny ability to understate the forecast for the following quarter's revenue each time they do the quarterly financial report to the analysts who are hanging on every word. Then 90 days later, they wow the very same crowd with unexpected numbers that blow the lid off the highest estimates. It is a game with gigantic money at stake.

This time around, despite a gigantic increase in sales and net revenue, iPhone 4 sales were a bit lower than expected and you would have thought Apple was going under. The stock plunged and headlines were published that "Apple Disappoints" and the entire market took a hit for a while. Cook correctly stated that the problem was simply people waiting for the next iPhone in the que, rather than any weakness in the red hot market for things Apple.

The CEO of Microsoft, while in its prime, stated that: "A company that fails to obsolete its own products is doomed to see the competition do it." That is a quotation from Bill Gates, Steve Ballmer either wasn't at work that day, or someone didn't translate it to him in language he could understand. Apple obsoletes its own products regularly and they have admitted that iPad is cannibalizing some Mac sales, which were still very strong.

Apple stock is bouncing back and consumers were still buying iPhone 4S like hotcakes for every carrier, including the ugly ducking cellphone carrier, Sprint. An analogy would be that "oh my gosh, Apple is walked on water ... but they got the bottom of their feet wet!" Go figure, I bet Dvorak sold his Apple shares.

Apple blames, to some extent, the press for raising the stakes so high in expectations regarding upcoming iPhone launch that a lot of people are waiting until the next release, the iPhone 5, instead of buying iPhone 4. The two-year cell phone contract cycle and the timing of the release of new iPhones is certainly an issue. Car companies face the same issue as people wait for the next year's model to buy a car.

I am one of those iPhone 3GS users with a few more months left to go on my contract, and I figure I might as well wait those few months and go with the iPhone 5, expected late next spring. Electronics hardware has an obsoleteness factor based upon new and compelling features that require the latest technology. Buying things mid-cycle tends to cause your hardware to get "long on the tooth" before you are ready to replace it.

Apple chose to push Siri as the killer feature that requires iPhone 4S to use. The reason stated is that the faster dual A5 chipset is required to operate the sophisticated voice recognition software that allows Apple's servers to respond to inquiries with the slightly sarcastic but accurate responses that are delighting the market.

Within hours of iOS 5 being launched and iPhone 4S being sold, iOS 5 was hacked to allow Siri to run on iPhone 4 and possibly, even my ancient iPhone 3GS. There are ways Apple intends to keep Siri running only on iPhone 4S to preserve the exclusivity of the feature for the new iPhone. Namely, the Apple servers know to whom they are connected to and which device you are using. Part of the hack is to confuse the servers into thinking you are using an iPhone 4S when you are actually using an older model.

Reportedly, the hack does not require jail-breaking your iPhone but does require some third party software to add an App that is not approved by Apple. That Siri work-around app is likely to be sold rather than being given away, and you know Apple will crush it any way they can.

That Siri will work, even slowly, on an iPhone 4 is evidence that Apple is making Siri exclusive for the iPhone 4S largely for marketing reasons, but things not working 100% right isn't the Job approved way of doing business. If the hack can get Siri running at full speed on previous hardware, that would make the issue 100% a marketing decision and a lot of pressure would come down on Apple to open Siri up "to the rest of us".

As i mentioned the other day, Siri is certainly coming to the Mac OS and iPad 3, sooner than later. I am also an iPad 1 owner keen to upgrade to an iPad 3. Rumors of a retinal iPad display and Siri will certainly push the already hot iPad market along, crushing every tablet competitors launch. I don't consider the Amazon Flame tablet a direct competitor to iPad, but I do see the potential for a bottom rung iPad with a smaller screen at a cheap price for putting out the Amazon Flame, before it reaches critical mass.

Will Apple match the loss leader US$200 price point Amazon set? Ask John C. Dvorak, he knows everything, (just a bit of sarcasm), but that is just Greg's Bite.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Suitcase Fusion 7 18.2.4 - Font manageme...
Suitcase Fusion 7 is the creative professional's font manager. Every professional font manager should deliver the basics: spectacular previews, powerful search tools, and efficient font organization... Read more
SoftRAID 5.6.1 - High-quality RAID manag...
SoftRAID allows you to create and manage disk arrays to increase performance and reliability. SoftRAID allows the user to create and manage RAID 4 and 5 volumes, RAID 1+0, and RAID 1 (Mirror) and... Read more
BetterTouchTool 2.25 - Customize Multi-T...
BetterTouchTool adds many new, fully customizable gestures to the Magic Mouse, Multi-Touch MacBook trackpad, and Magic Trackpad. These gestures are customizable: Magic Mouse: Pinch in / out (zoom... Read more
Google Chrome 59.0.3071.115 - Modern and...
Google Chrome is a Web browser by Google, created to be a modern platform for Web pages and applications. It utilizes very fast loading of Web pages and has a V8 engine, which is a custom built... Read more
Google Chrome 59.0.3071.115 - Modern and...
Google Chrome is a Web browser by Google, created to be a modern platform for Web pages and applications. It utilizes very fast loading of Web pages and has a V8 engine, which is a custom built... Read more
SoftRAID 5.6.1 - High-quality RAID manag...
SoftRAID allows you to create and manage disk arrays to increase performance and reliability. SoftRAID allows the user to create and manage RAID 4 and 5 volumes, RAID 1+0, and RAID 1 (Mirror) and... Read more
Suitcase Fusion 7 18.2.4 - Font manageme...
Suitcase Fusion 7 is the creative professional's font manager. Every professional font manager should deliver the basics: spectacular previews, powerful search tools, and efficient font organization... Read more
BetterTouchTool 2.25 - Customize Multi-T...
BetterTouchTool adds many new, fully customizable gestures to the Magic Mouse, Multi-Touch MacBook trackpad, and Magic Trackpad. These gestures are customizable: Magic Mouse: Pinch in / out (zoom... Read more
WhiteCap 6.7.1 - Visual plug-in for iTun...
WhiteCap is a sleek and sophisticated music visualizer and screensaver that features futuristic, wireframe mesh visuals with dynamic backgrounds and colors. WhiteCap contains thousands of visual... Read more
DiskMaker X 6.0 rc5 - Make a bootable OS...
DiskMaker X (was Lion DiskMaker) helps you to build a bootable drive from the official OS X installer app (the one you download from the Mac App Store). It detects the OS X Install program with... Read more

Latest Forum Discussions

See All

This War of Mine gets a new ending and m...
This War of Mine just got a big new update, featuring free DLC that adds a new ending to the game, among other exciting changes. The update is celebrating the game's two-year release anniversary. Apart from the new ending, which will be quite... | Read more »
Summon eight new heroes in Fire Emblem H...
Nintendo keeps coming at us with Fire Emblem Heroes updates, and it doesn't look like that trend is stopping anytime soon. The folks behind the game have just announced the new War of the Clerics Voting Gauntlet, expected to start next Tuesday. [... | Read more »
The best deals on the App Store this wee...
iOS publishers are pulling out all the stops this week -- there's a huge number of seriously great games at discounted prices this week. Let's not waste any time and get right down to business. [Read more] | Read more »
The House of da Vinci (Games)
The House of da Vinci 1.0.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.0 (iTunes) Description: Enter The House of Da Vinci, a new must-try 3D puzzle adventure game. Solve mechanical puzzles, discover hidden... | Read more »
Solve the disappearance of history’s gre...
Blue Brain Games invites you to indulge in an immersive hands-on 3D puzzle adventure in similar vein to The Room series, with its debut release The House of Da Vinci. Set during the historic period of the Italian Renaissance (when Leonardo himself... | Read more »
Age of Rivals (Games)
Age of Rivals 3.3 Device: iOS Universal Category: Games Price: $.99, Version: 3.3 (iTunes) Description: Deep civilization-building strategy in a fast-paced card game! | Read more »
Panthera Frontier (Games)
Panthera Frontier 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: | Read more »
Angry Birds Evolution beginner's gu...
Angry Birds changes things up a fair bit in its latest iteration, Angry Birds Evolution. The familiar sling-shot physics mechanics are still there, but the game now features team-based gameplay, RPG elements, and a new top-down view. With all of... | Read more »
Sega Forever is for the retro game fans
Sega is launching a new retro games service titled Sega Forever, in a move that's sure to delight games enthusiasts with a bit of nostalgia. Sega's releasing five classic games for free. The titles include Sonic the Hedgehog, Phantasy Star II,... | Read more »
The Little Acre (Games)
The Little Acre 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: | Read more »

Price Scanner via MacPrices.net

13-inch 1.8GHz/256GB MacBook Air on sale for...
B&H Photo has the updated 2017 13″ 1.8GHz/256GB MacBook Air (MQD42LL/A) in stock and on sale for $1129 including free shipping plus NY & NJ tax only. Their price is $70 off MSRP. Read more
27-inch 3.4GHz iMac on sale for $1699, save $...
B&H Photo has the new 2017 27″ 3.4GHz iMac (MNE92LL/A) in stock and on sale for $1699 including free shipping plus NY & NJ sales tax only. Their price is $100 off MSRP. Read more
21-inch 2.3GHz iMac on sale for $1049, save $...
B&H Photo has the new 2017 21″ 2.3GHz iMac (MMQA2LL/A) in stock and on sale for $1049 including free shipping plus NY & NJ tax only. Their price is $50 off MSRP. Read more
ABBYY TextGrabber 6 for iOS Implements Instan...
ABBYY has announced the release of TextGrabber 6.0.0, an important feature update to the company’s productivity app developed for iOS and Android devices. TextGrabber 6.0 now offers Real-Time... Read more
vPhone, First Smartphone That Can’t Be Lost,...
Austin, Texas based Hypori has introduced the vPhone, a virtual smartphone that affords every business user the benefits of separate work and personal phones, conveniently delivered on a single... Read more
Save this weekend with 2016 refurbished MacBo...
Apple has dropped prices on Certified Refurbished 2016 15″ and 13″ MacBook Pros by as much as $590 off original MSRP. An Apple one-year warranty is included with each model, and shipping is free: -... Read more
New 27-inch 3.4GHz iMac on sale for $1699, sa...
MacMall has the new 2017 27″ 3.4GHz iMac (MNE92LL/A) in stock and on sale for $1699 including free shipping. Their price is $100 off MSRP. Read more
Clearance 2016 MacBook Pros available for up...
B&H Photo has clearance 2016 13″ and 15″ MacBook Pros in stock today and on sale for up to $400 off original MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: - 15″ 2.7GHz... Read more
Apple Ranks 9th In comScore Top 50 U.S. Digit...
comScore, Inc. has released its monthly ranking of U.S. online activity at the top digital media properties for May 2017 based on data from comScore Media Metrix Multi-Platform. * Entity has... Read more
10.5-inch iPad Pros available for up to $20 o...
B&H Photo has the new 2017 10.5″ iPad Pros available for up to $20 off MSRP including free shipping plus NY & NJ sales tax only: - 64GB iPad Pro WiFi: $649 - 256GB iPad Pro WiFi: $749 - 512GB... Read more

Jobs Board

*Apple* News Product Marketing Mgr., Publish...
…organizational consensus on strategy and vision for publisher tools, authoring, and Apple News Format.Carries this strategy and vision across the organization to Read more
*Apple* Retail - Multiple Positions - Apple,...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, Read more
Security Data Analyst - *Apple* Information...
…data sources need to be collected to allow Information Security to better protect Apple employees and customers from a wide range of threats.Act as the subject matter Read more
Lead *Apple* Solutions Consultant - Apple I...
…integrity, and trust.Success Metrics/Key Performance Indicators:Quantitative* Year over Year growth in Apple Product and Beyond the Box sales in the assigned Point of Read more
*Apple* Solutions Consultant till v%u00E5r...
…ethics, integrity, and trust.Success Metrics/Key Performance Indicators:QuantitativeYear over Year growth in Apple Product and Beyond the Box sales in the assigned Point Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.