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

OmniGraffle Pro 7.2.2 - Create diagrams,...
OmniGraffle Pro helps you draw beautiful diagrams, family trees, flow charts, org charts, layouts, and (mathematically speaking) any other directed or non-directed graphs. We've had people use... Read more
OmniGraffle 7.2.2 - Create diagrams, flo...
OmniGraffle helps you draw beautiful diagrams, family trees, flow charts, org charts, layouts, and (mathematically speaking) any other directed or non-directed graphs. We've had people use Graffle to... Read more
Spotify 1.0.44.100. - Stream music, crea...
Spotify is a streaming music service that gives you on-demand access to millions of songs. Whether you like driving rock, silky R&B, or grandiose classical music, Spotify's massive catalogue puts... Read more
Microsoft OneNote 15.29 - Free digital n...
OneNote is your very own digital notebook. With OneNote, you can capture that flash of genius, that moment of inspiration, or that list of errands that's too important to forget. Whether you're at... Read more
WALTR 2 2.0.8 - $39.95
WALTR 2 helps you wirelessly drag-and-drop any music, ringtones, videos, PDF, and ePub files onto your iPhone, iPad, or iPod without iTunes. It is the second major version of Softorino's critically-... Read more
Dropbox 16.3.27 - Cloud backup and synch...
Dropbox is an application that creates a special Finder folder that automatically syncs online and between your computers. It allows you to both backup files and keep them up-to-date between systems... Read more
EtreCheck 3.1.5 - For troubleshooting yo...
EtreCheck is an app that displays the important details of your system configuration and allow you to copy that information to the Clipboard. It is meant to be used with Apple Support Communities to... Read more
Carbon Copy Cloner 4.1.12 - Easy-to-use...
Carbon Copy Cloner backups are better than ordinary backups. Suppose the unthinkable happens while you're under deadline to finish a project: your Mac is unresponsive and all you hear is an ominous,... Read more
VueScan 9.5.62 - Scanner software with a...
VueScan is a scanning program that works with most high-quality flatbed and film scanners to produce scans that have excellent color fidelity and color balance. VueScan is easy to use, and has... Read more
SpamSieve 2.9.27 - Robust spam filter fo...
SpamSieve is a robust spam filter for major email clients that uses powerful Bayesian spam filtering. SpamSieve understands what your spam looks like in order to block it all, but also learns what... Read more

Latest Forum Discussions

See All

Track Santa with these three festive app...
Christmas is fast approaching and that means it's time to prepare for Santa's yearly pilgrimage around the globe. Christmas Eve is an exciting time as parents help their kids get ready to welcome Santa. You've got the cookies and milk all planned... | Read more »
Galaxy on Fire 3 and four other fantasti...
Galaxy on Fire 3 - Manticore brings the series back for another round of daring space battles. It's familiar territory for folks who are familiar with the franchise. If you've beaten the game and are looking to broaden your horizons, might we... | Read more »
The best apps for your holiday gift exch...
What's that, you say? You still haven't started your holiday shopping? Don't beat yourself up over it -- a lot of people have been putting it off, too. It's become easier and easier to procrastinate gift shopping thanks to a number of apps that... | Read more »
Toca Hair Salon 3 (Education)
Toca Hair Salon 3 1.0 Device: iOS Universal Category: Education Price: $2.99, Version: 1.0 (iTunes) Description: | Read more »
Winter comes to Darkwood as Seekers Note...
MyTona, based in the chilly Siberian city of Yakutsk, has brought a little festive fun to its hidden object game Seekers Notes: Hidden Mystery. The Christmas update introduces some new inhabitants to players, and with them a chance to win plenty of... | Read more »
Bully: Anniversary Edition (Games)
Bully: Anniversary Edition 1.03.1 Device: iOS Universal Category: Games Price: $6.99, Version: 1.03.1 (iTunes) Description: *** PLEASE NOTE: This game is officially supported on the following devices: iPhone 5 and newer, iPod Touch... | Read more »
PINE GROVE (Games)
PINE GROVE 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: A pine grove where there are no footsteps of people due to continuous missing cases. The case is still unsolved and nothing has... | Read more »
Niantic teases new Pokémon announcement...
After rumors started swirling yesterday, it turns out there is an official Pokémon GO update on its way. We’ll find out what’s in store for us and our growing Pokémon collections tomorrow during the Starbucks event, but Niantic will be revealing... | Read more »
3 reasons why Nicki Minaj: The Empire is...
Nicki Minaj is as business-savvy as she is musically talented and she’s proved that by launching her own game. Designed by Glu, purveyors of other fine celebrity games like cult favorite Kim Kardashian: Hollywood, Nicki Minaj: The Empire launched... | Read more »
Clash of Clans is getting its own animat...
Riding on its unending wave of fame and success, Clash of Clans is getting an animated web series based on its Clash-A-Rama animated shorts.As opposed to the current shorts' 60 second run time, the new and improved Clash-A-Rama will be comprised of... | Read more »

Price Scanner via MacPrices.net

New 2016 13-inch Touch Bar MacBook Pros on sa...
B&H Photo the new 2016 Apple 13″ 2.9GHz/256GB Touch Bar MacBook Pros on sale for $50 off MSRP, each including free shipping plus NY sales tax only: - 13″ 2.9GHz/256GB Touch Bar MacBook Pro Space... Read more
12-inch 1.2GHz Space Gray Retina MacBook on s...
B&H Photo has dropped their price on the 2016 Apple 12″ 1.2GHz Space Gray Retina MacBook (MLH82LL/A) to $1399 including free shipping plus NY sales tax only. Their price is $200 off MSRP, and it’... Read more
Never Settle for Low Performing Wifi With iOS...
AppYogi Software has announced the release of WiFi Signal Strength Status App 1.0, the company’s new utility developed exclusively for macOS. WiFi Signal Strength Status App features a unique, single... Read more
New 2016 13-inch Touch Bar MacBook Pros in st...
B&H Photo has stock of new 2016 Apple 13″ Touch Bar MacBook Pro models, each including free shipping plus NY sales tax only: - 13″ 2.9GHz/512GB Touch Bar MacBook Pro Space Gray: $1999 - 13″ 2.... Read more
New 2016 15″ Touch Bar MacBook Pros in stock...
B&H Photo has new 2016 Apple 15″ Touch Bar MacBook Pro models in stock today including free shipping plus NY sales tax only: - 15″ 2.7GHz Touch Bar MacBook Pro Space Gray: $2799 - 15″ 2.7GHz... Read more
DietSensor App Targeting Diabetes and Obesity...
DietSensor, Inc., a developer of smart food and nutrition applications designed to fight diabetes and obesity and help improve overall fitness, has announced the launch of its DietSensor app for... Read more
Holiday 2016 13-inch 2.0GHz MacBook Pro sales...
B&H has the non-Touch Bar 13″ MacBook Pros in stock today for $50-$100 off MSRP. Shipping is free, and B&H charges NY sales tax only: - 13″ 2.0GHz MacBook Pro Space Gray (MLL42LL/A): $1449 $... Read more
Holiday sale: Apple TVs for $51-$40 off MSRP,...
Best Buy has dropped their price on the 64GB Apple TV to $159.99 including free shipping. That’s $40 off MSRP. 32GB Apple TVs are on sale right now for $98 on Sams Club’s online store. That’s $51 off... Read more
12-inch Retina MacBooks, Apple refurbished, n...
Apple has restocked a full line of Certified Refurbished 2016 12″ Retina MacBooks, now available for $200-$260 off MSRP. Refurbished 2015 models are available starting at $929. Apple will include a... Read more
Holiday sale: 12-inch Retina MacBook for $100...
B&H has 12″ Retina MacBooks on sale for $100 off MSRP as part of their Holiday sale. Shipping is free, and B&H charges NY sales tax only: - 12″ 1.1GHz Space Gray Retina MacBook: $1199 $100... Read more

Jobs Board

Integration Technician, *Apple* - Zones, In...
…at Zones and for our customers each day. Position Overview The Apple Integration Technician will be responsible for performing customer specific configuration Read more
*Apple* Brand Ambassador (Macy's) - The...
…(T-ROC), is proud of its unprecedented relationship with our partner and client, APPLE ,in bringing amazing" APPLE ADVOCATES"to "non" Apple store locations. Read more
*Apple* Retail - Multiple Positions- Trumbul...
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 - 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
US- *Apple* Store Leader Program - Apple (Un...
…Summary Learn and grow as you explore the art of leadership at the Apple Store. You'll master our retail business inside and out through training, hands-on Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.