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

Opera 44.0.2510.1449 - High-performance...
Opera is a fast and secure browser trusted by millions of users. With the intuitive interface, Speed Dial and visual bookmarks for organizing favorite sites, news feature with fresh, relevant content... Read more
Skim 1.4.29 - PDF reader and note-taker...
Skim is a PDF reader and note-taker for OS X. It is designed to help you read and annotate scientific papers in PDF, but is also great for viewing any PDF file. Skim includes many features and has a... Read more
FontExplorer X Pro 6.0.2 - Font manageme...
FontExplorer X Pro is optimized for professional use; it's the solution that gives you the power you need to manage all your fonts. Now you can more easily manage, activate and organize your... Read more
1Password 6.7.1 - Powerful password mana...
1Password is a password manager that uniquely brings you both security and convenience. It is the only program that provides anti-phishing protection and goes beyond password management by adding Web... Read more
Vivaldi 1.9.818.44 - An advanced browser...
Vivaldi is a browser for our friends. In 1994, two programmers started working on a web browser. Our idea was to make a really fast browser, capable of running on limited hardware, keeping in mind... Read more
Vivaldi 1.9.818.44 - An advanced browser...
Vivaldi is a browser for our friends. In 1994, two programmers started working on a web browser. Our idea was to make a really fast browser, capable of running on limited hardware, keeping in mind... Read more
Skim 1.4.29 - PDF reader and note-taker...
Skim is a PDF reader and note-taker for OS X. It is designed to help you read and annotate scientific papers in PDF, but is also great for viewing any PDF file. Skim includes many features and has a... Read more
1Password 6.7.1 - Powerful password mana...
1Password is a password manager that uniquely brings you both security and convenience. It is the only program that provides anti-phishing protection and goes beyond password management by adding Web... Read more
FontExplorer X Pro 6.0.2 - Font manageme...
FontExplorer X Pro is optimized for professional use; it's the solution that gives you the power you need to manage all your fonts. Now you can more easily manage, activate and organize your... Read more
VOX 2.8.24 - Music player that supports...
VOX just sounds better! The beauty is in its simplicity, yet behind the minimal exterior lies a powerful music player with a ton of features and support for all audio formats you should ever need.... Read more

Latest Forum Discussions

See All

Fire Emblem Heroes event announces new m...
As reported yesterday, Nintendo was gearing up a live press event for their popular mobile game,Fire Emblem Heroes. While the stream revealed a lot of new things, the event was entirely in Japanese. Luckily we have a rundown of what was announced... | Read more »
Best games we played this week
Another week, another slate of new mobile games. Although there weren't as many big name releases as last week, there were plenty of unique video game titles that came out that's sure to keep you interested over the weekend. Everything from classic... | Read more »
Olli by Tinrocket (Photography)
Olli by Tinrocket 1.0 Device: iOS iPhone Category: Photography Price: $2.99, Version: 1.0 (iTunes) Description: Get drawn in with Olli by TinrocketOlli instantly turns your everyday moments into hand-drawn art and animations. • Watch... | Read more »
Penarium (Games)
Penarium 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: | Read more »
Fire Emblem Heroes is way more profitabl...
Profits for Nintendo's mobile game Fire Emblem Heroes are apparently impressive enough to beat out other Nintendo titles likeSuper Mario Run, despite having 10 times fewer downloads. [Read more] | Read more »
Classic series Robot Unicorn Attack 3 no...
The classic Adult Swim browser game, Robot Unicorn Attack, branched off into a series of popular mobile games. Now, the latest entry into the series, Robot Unicorn Attack 3, is available for iOS and Android mobile devices. [Read more] | Read more »
Sudoku Sweeper (Games)
Sudoku Sweeper 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: A minimalist mashup of Minesweeper and Sudoku. Logic puzzle perfection. Every row, column and zone contains a bomb and one of... | Read more »
Under Leaves (Games)
Under Leaves 1.0.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.0 (iTunes) Description: Journey into the forest, the jungle or the depths of the deep blue sea. Find chestnuts for the pigs, a caterpillar for the... | Read more »
Ninja Pizza Girl (Games)
Ninja Pizza Girl 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: In the not-so-distant future, rampart traffic congestion has resulted in only one way to deliver pizzas across town in thirty... | Read more »
SCRAP (Games)
SCRAP 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: That day, for no apparent reason, SCRAP decided to wake up and run. He had to, because his activation was a mistake the "Factory" could... | Read more »

Price Scanner via MacPrices.net

15-inch 2.7GHz Space Gray Touch Bar MacBook P...
B&H Photo has the 15″ 2.7GHz Space Gray Touch Bar MacBook Pro in stock today and on sale for $2599…$200 off MSRP. Shipping is free, and B&H charges NY & NJ sales tax only: - 15″ 2.7GHz... Read more
13-inch 2.9GHz/256GB Space Gray Touch Bar Mac...
B&H Photo has the 13″ 2.9GHz/256GB Space Gray Touch Bar MacBook Pro in stock today and on sale for $150 off MSRP including free shipping plus NY & NJ sales tax only: - 13″ 2.9GHz/256GB Touch... Read more
21-inch iMacs on sale for up to $151 off MSRP
B&H Photo has 21″ iMacs on sale for up to $151 off MSRP, each including free shipping plus NY sales tax only: - 21″ 3.1GHz iMac 4K: $1348 $151 off MSRP - 21″ 2.8GHz iMac: $1199.99 $100 off MSRP... Read more
Weekend deal: Up to $420 off new MacBook Pros...
Apple has Certified Refurbished 2016 15″ and 13″ MacBook Pros available for $230 to $420 off original MSRP. An Apple one-year warranty is included with each model, and shipping is free: - 15″ 2.6GHz... Read more
Price drop: 15-inch 2.2GHz Retina MacBook Pro...
Amazon has dropped their price on 15″ 2.2GHz Retina MacBook Pros (MJLQ2LL/A) to $1709.99 including free shipping. Their price is $290 off MSRP for this model. Note that stock may sell out quickly at... Read more
2.8GHz Mac mini on sale for $899, save $100
B&H Photo has the 2.8GHz Mac mini (model number MGEQ2LL/A) on sale for $899 including free shipping plus NY & NJ sales tax only. Their price is $100 off MSRP. Read more
Check Apple prices on any device with the iTr...
MacPrices is proud to offer readers a free iOS app (iPhones, iPads, & iPod touch) and Android app (Google Play and Amazon App Store) called iTracx, which allows you to glance at today’s lowest... Read more
New System Clock for macOS by B-Eng Now Avail...
Fehraltorf, Switzerland based B-Eng has announced the release and immediate availability of System Clock, the company’s new system monitor and information app developed exclusively for macOS. System... Read more
DEVONtechnologies Celebrates 15th Anniversary...
DEVONtechnologies celebrates its 15th company anniversary with a 30% discount on all its software products from May 1st through 5th, 2017. In spring 2002, DEVONtechnologies opened its website and... Read more
WaterField Designs Invites Customers to Help...
San Francisco based WaterField Designs invites customers and air travelers to participate in developing the next generation in-flight travel case, the Air Porter. Frustrated with limited legroom,... Read more

Jobs Board

Best Buy *Apple* Computing Master - Best Bu...
**501846BR** **Job Title:** Best Buy Apple Computing Master **Location Number:** 001126-South Bay Center-Store **Job Description:** **What does a Best Buy Apple Read more
Consultant or Sr. Consultant, *Apple* Allia...
…improve our business and your clients will be heard.Project Manager, Apple AllianceLocation:San Francisco preferred, open to other locationsLevel:Consultant or Sr. Read more
*Apple* Mac Computer Technician - GeekHampto...
…complex computer issues over the phone and in person? GeekHampton, Long Island's Apple Premium Service Provider, is looking for you! Come work with our crew Read more
*Apple* Mobile Master - Best Buy (United Sta...
**501505BR** **Job Title:** Apple Mobile Master **Location Number:** 000849-Gurnee-Store **Job Description:** **What does a Best Buy Apple Mobile Master do?** At Read more
Best Buy *Apple* Computing Master - Best Bu...
**498428BR** **Job Title:** Best Buy Apple Computing Master **Location Number:** 000293-Rockville-Store **Job Description:** **What does a Best Buy Apple Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.