Analyst Predicts Next-Generation iPhone Will Offer Lower Total Cost of Ownership

[thecartoonguy]

yes, why would Apple keep coming out with a new version of the most popular phone of all time, which happens to have captured a huge chunk of the smartphone market.

That would be CrAZy!!!!

So you would rather see yet another iphone than say a whole new line of computers? Yea right. There will be nothing more that a simple bump in speed. OOHHHHH shiny. Enough bumps make it something worth wild

 

[gkarris]

That lower TCO is bogus...

AT&T (and maybe Verizon and T-Mobile if they get the iPhone), will have more iPhone plans to be competitive, but you'll end up not having any voice minutes, no text, and a low data cap in order to save only a few dollars a month.

Bogus...

 

[dmarcoot]

More pump n dump

This is absurd on so many levels. She has no real information, they never do. every year these analyst predict what apple will do, every year they are wrong, because they are just making it up to justify pumping the stock. I have a small investment in apple, and i would welcome stock going higher, but this is just dishonest and wrong. This is not as bad as analysts a few weeks ago who was predicting iphone sales for 2020.

 

[Ruahrc]

Really, this is about the dumbest chart I've ever seen. Anybody can take a stock graph, draw on a forecast that covers a $300 price range (triple the total variation of the stock in the past 3 years) and make up some garbage to justify it.

 

[iphones4evry1]

The reason most people do not buy an iPhone is not because of the $199 to purchase the phone (or even if it was $499 to Apple). The reason that most people don't buy an iPhone is because of the $80/MONTH THAT AT&T CHARGES!!!!!! If you can get AT&T to lower the $80/month to $59 per month, I'll bet you twice as many people would buy an iPhone.

gesture-based technology? so what, like you accidentally shake the phone and it changes to a different song or rotates the screen or closes the app or calls one of your contacts? sounds annoying and frustrating.

 

[liavman]

I have a hard time to see the effect of iPhone and iPod touch to make any difference in APPL stock price. It is hovering about $200 for many years now (before iPhone introduction). And we are on 3rd generation of iPhone and world wide now. Any investor would understand, Apple makes gadgets and it is not a necessity for everyone to have one or have many. Apple would be the worst performing stock in my portfolio at the moment. Loading up with GE at $5.94 and BAC for $2.56 was way more rewarding. No need to procrastinate on flat stocks, hey, APPL does not even pay dividends for their flat performing stock. Even PALM did 3-7x better then APPL last year.

So many factual errors in the above post. How can we trust your predictions about the future!!

 

[huntercr]

aren't there also rumors of a stock split?

Yes, there have been for years now. Ever since Apple broke $100/share people have been freaking out saying apple should split, but I think the board made it crystal clear that they see no value in a split and are taking the google and berkshire approach that there is no point of a split in the modern trading era.

I am not a financial or stockmarket maven at all but...someone told me once that the only thing a not having a split does is theoretically is possibly subdue volatility. Making it harder for people to try to force movement of the stock downwards ( or upwards ) and the same net effect on the options game...( since to the true market makers and "real" traders have to buy in lots of 200 for AAPL and of course all options are in lots of 100.) But in reality I don't think it changes that either, because again... it requires the same amount of money relative to the outstanding shares to do that.

The stock split is a vestige of an older era before fractional shares. There's really no point.

 

[huntercr]

The cost of an iPhone won't go down unless Apple's sales plummit. They are far too greedy to lower the price without them losing money. Jobs policy is My way or the Highway.... or How can I get your money?

I don't think there's much room for it to go down further... $99 is pretty freaking cheap. Yes, Apple has made huge volume here, but lets all remember that iPhone shook up the entire industry because it had massively better horsepower CPU & GPU than anything else offered at the time and 10 times the storage. And that had a real cost to it at the time.

I mean I remember the month before the iPhone was announced my boss had just set down the Blackberry "world edition " 8830 on my desk saying how awesome that phone was . And it was actually pretty cool, I thought.

Lets go over those specs...
225MHz CPU, 16MB of ram
64MB flash (granted it had an internal micro SD slot too )
16bit color 320x240 screen

1 month later comes an iPhone

400MHz CPU, 128MB Ram ( integrated GPU too )
8GB flash
18bit 320x480 screen
Wifi connectivity

Lets remember that the Razor in its latest incarnation was still the king of phones at the time, though it was plainly on its way out.

The device I was moderately excited about just a month before looked like a toy in comparison.

Apple caught EVERYONE with their pants down... phone makers, phone companies, computer companies, analysts... everyone.

Still that kind of investment they made there wasn't cheap... that hardware cost more than any phone manufacturer was willing to spend back then. Now they're all clamoring and throwing in OLED and really expensive components because they have strong competition who didn't play the "incremental upgrade" and "don't add features anyone will actually want, unless you have to " game.

Remember back in 2007 phone companies were still trying to convince the world that texting was so super important and cameras as well, as a service so that you must pay for it, and wouldn't be shocked when you were charged $0.50 per text or whatever.

Apple has chucked that entire model out the window, and I think very soon texting ( as a separate service that you have to have a plan for or pay for )
Will be gone from the public's mind in about 3-4 more years.

Apple *shouldn't* lower its prices until it needs to... not to rip off consumers, but to have leverage when a worthy contender finally does come out, or the flexibility to lower prices when the inevitable iPhone 4G or iPhone Pro or whatever they're going to call it comes out.

 

[mygoldens]

It is a Phone

How can you lower the total cost of ownership of a phone

 

[liavman]

The stock split is a vestige of an older era before fractional shares. There's really no point.

Are fractional shares really that common? I did not even know that is possible. My broker who is one of the biggest discount broker does not offer that. I know there are unit trusts that get established for shares like Berkshire Hathway since each share price is very high. Once Warren Buffett saw that happening and he did not like that, he created the class B shares... But that was 15 years ago... But it comes as a surprise when you said non-fractional share environment was a vestige from an older era. Really?