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.

 
AAPL
$112.65
Apple Inc.
+3.24
MSFT
$47.52
Microsoft Corpora
+1.78
GOOG
$511.10
Google Inc.
+6.21

MacTech Search:
Community Search:

Software Updates via MacUpdate

Mellel 3.3.7 - Powerful word processor w...
Mellel is the leading word processor for OS X and has been widely considered the industry standard since its inception. Mellel focuses on writers and scholars for technical writing and multilingual... Read more
ScreenFlow 5.0.1 - Create screen recordi...
Save 10% with the exclusive MacUpdate coupon code: AFMacUpdate10 Buy now! ScreenFlow is powerful, easy-to-use screencasting software for the Mac. With ScreenFlow you can record the contents of your... Read more
Simon 4.0 - Monitor changes and crashes...
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
BBEdit 11.0.2 - Powerful text and HTML e...
BBEdit is the leading professional HTML and text editor for the Mac. Specifically crafted in response to the needs of Web authors and software developers, this award-winning product provides a... Read more
ExpanDrive 4.2.1 - Access cloud storage...
ExpanDrive builds cloud storage in every application, acts just like a USB drive plugged into your Mac. With ExpanDrive, you can securely access any remote file server directly from the Finder or... Read more
Adobe After Effects CC 2014 13.2 - Creat...
After Effects CC 2014 is available as part of Adobe Creative Cloud for as little as $19.99/month (or $9.99/month if you're a previous After Effects customer). After Effects CS6 is still available... Read more
Command-C 1.1.7 - Clipboard sharing tool...
Command-C is a revolutionary app which makes easy to share your clipboard between iOS and OS X using your local WiFi network, even if the app is not currently opened. Copy anything (text, pictures,... Read more
Tidy Up 4.0.2 - Find duplicate files and...
Tidy Up is a complete duplicate finder and disk-tidiness utility. With Tidy Up you can search for duplicate files and packages by the owner application, content, type, creator, extension, time... Read more
Typinator 6.3 - Speedy and reliable text...
Typinator turbo-charges your typing productivity. Type a little. Typinator does the rest. We've all faced projects that require repetitive typing tasks. With Typinator, you can store commonly used... Read more
GraphicConverter 9.5 - Graphics editor w...
GraphicConverter is an all-purpose image-editing program that can import 200 different graphic-based formats, edit the image, and export it to any of 80 available file formats. The high-end editing... Read more

Latest Forum Discussions

See All

Shift - Photo Filters Designed By You (...
Shift - Photo Filters Designed By You 1.0 Device: iOS Universal Category: Photography Price: $.99, Version: 1.0 (iTunes) Description: | Read more »
Elastic Drums (Music)
Elastic Drums 1.0 Device: iOS iPhone Category: Music Price: $3.99, Version: 1.0 (iTunes) Description: *** Introduction price 3,99$ instead of 7,99$ *** Elastic Drums is a music app with 6 channels of synthesized drum sounds, a step... | Read more »
Fireworks Simulator (Games)
Fireworks Simulator 1.0.8 Device: iOS Universal Category: Games Price: $.99, Version: 1.0.8 (iTunes) Description: *** 50% discount – For a short time only *** You can play Fireworks Simulator on these devices: - iPhone 5, 5s, 5c, 6,... | Read more »
Nicky's Gift (Games)
Nicky's Gift 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Everybody! Merry Christmas! There's 48 levels in the game. Let's go! Nicky's Gift | Read more »
The Hit List — Simply Powerful Tasks, To...
The Hit List — Simply Powerful Tasks, To-Dos, Projects, & Reminders 2.0 Device: iOS iPhone Category: Productivity Price: $9.99, Version: 2.0 (iTunes) Description: >> LAUNCH SPECIAL: The Hit List 2 for iPhone is ONLY $9.99... | Read more »
Mahjong Journey Review
Mahjong Journey Review By Jennifer Allen on December 18th, 2014 Our Rating: :: STEADY MATCHINGiPad Only App - Designed for the iPad Aimed at the more laid back gamer, Mahjong Journey isn’t for everyone, but those looking for some... | Read more »
Emoji Type - custom keyboard with predic...
Emoji Type - custom keyboard with predictive emojis 0.4.0 Device: iOS iPhone Category: Utilities Price: $.99, Version: 0.4.0 (iTunes) Description: Emoji Type is custom keyboard for iOS 8 that auto suggests emojis as you type. ABOUT... | Read more »
Game of the Year 2014 – 148Apps Staff Pi...
The end of 2014 is almost here, which can only mean one thing. Okay it can mean a lot of things, but in this specific context it means Game of the Year lists! Which is why the 148Apps staff have all picked their favorites from the past year. And why... | Read more »
UponPixels Review
UponPixels Review By Jennifer Allen on December 18th, 2014 Our Rating: :: CREATIVE TYPOGRAPHYUniversal App - Designed for iPhone and iPad Add cool typography and objects to your photos with the easy to use UponPixels.   | Read more »
The Vikings are Coming! CastleStorm’s Ne...
The Vikings are Coming! CastleStorm’s New Update Adds a Survival Mode Posted by Jessica Fisher on December 18th, 2014 [ permalink ] | Read more »

Price Scanner via MacPrices.net

Save up to $400 on MacBooks with Apple Certif...
The Apple Store has Apple Certified Refurbished 2014 MacBook Pros and MacBook Airs available for up to $400 off the cost of new models. An Apple one-year warranty is included with each model, and... Read more
Save up to $300 on Macs, $30 on iPads with Ap...
Purchase a new Mac or iPad at The Apple Store for Education and take up to $300 off MSRP. All teachers, students, and staff of any educational institution qualify for the discount. Shipping is free,... Read more
iOS and Android OS Targeted by Man-in-the-Mid...
Cloud services security provider Akamai Technologies, Inc. has released, through the company’s Prolexic Security Engineering & Research Team (PLXsert), a new cybersecurity threat advisory. The... Read more
KMI MIDI K-Board Great Gift for Amateur &...
The K-Board is a MIDI Nano keyboard for music creation for iPad, Android, And computers; the easiest way to make music with iPads & Android tablets, and Mac, Windows, or Linux computers. Ultra-... Read more
Amazon offers 15-inch 2.2GHz Retina MacBook P...
 Amazon.com has the 15″ 2.2GHz Retina MacBook Pro on sale for $1699 including free shipping. Their price is $300 off MSRP. Stock is limited, so act now if you’re interested. Read more
Holiday sales continue: MacBook Pros for up t...
 B&H Photo has new MacBook Pros on sale for up to $300 off MSRP as part of their Holiday pricing. Shipping is free, and B&H charges NY sales tax only: - 15″ 2.2GHz Retina MacBook Pro: $1699... Read more
Holiday sale: Mac minis available for up to $...
 B&H Photo has new 2014 Mac minis on sale for up to $80 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 1.4GHz Mac mini: $459 $40 off MSRP - 2.6GHz Mac mini: $629 $70 off... Read more
Google Search App For iOS Gets A Major Makeov...
Google has given iOS users an early Christmas present with a substantial update of it’s not-very-often-upgraded Google Search app. Google Search has been my go-to tool for Web searches since it was... Read more
ShopKeep Apple Pay And Chip Card Reader Avail...
ShopKeep, a cloud-based technology provider to more than 10,000 small business owners to manage retail shops and restaurants with iPads, has released its new Apple Pay and chip card reader. This... Read more
Holiday sale! 27-inch 5K iMac for $2299, save...
 B&H Photo has the 27″ 3.5GHz 5K iMac in stock today and on sale for $2299 including free shipping plus NY sales tax only. Their price is $200 off MSRP, and it’s the lowest price available for... Read more

Jobs Board

Project Manager, *Apple* Financial Services...
**Job Summary** Apple Financial Services (AFS) offers consumers, businesses and educational institutions ways to finance Apple purchases. We work with national and 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...
Job Description: Sales Specialist - Retail Customer Service and Sales Transform Apple Store visitors into loyal Apple customers. When customers enter the store, 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.