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Apple is in a bit of weird spot lately.

Personally, I think the problem is that computers have reached their logical end. You can only invent email so many times, before your innovations just become pointless/waste of money.

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So what does that leave?

I think apple is quite right to go in the services area. People are still going to buy their devices (albeit at a slower rate, because they aren't replacing them as often). But at least with services, they'll continue to be making money off a hardware purchase that's 3-4 years old.

The problem is that apple's history of providing compelling services is spotty at best. And does it really make sense to make your services exclusive to your proprietary platform? You're services need to be very compelling for that to work.

And thats the catch 22. Apple has developed a business model that depends on a reputation for innovating. If Apple is releasing fewer "amazing" products, will people lose interest and look elsewhere... negatively impacting the demand for their services?

It's a question of finding the right balance.. I think that's what we're seeing right now...

The problem is that some of us do more with our macs than you do with yours.

My desktop is a 4,1 Mac Pro. Am I a professional, making money with my cheesegrater? Nope, I am just a 3D art hobbyist. None of my software is too terribly expensive - it goes from free (Blender) to about $500 (Zbrush).

And yet this software will use every bit of ram and every core I can throw at it.

The iCan isn't a solution - regardless of what Apple thinks, the world runs on CUDA.

Not to mention the cost of replacing missing core functionality that came with the towers (Go price out a TB dock, along with a minimum of 2 4bay enclosures). Expecting me to drop my entire workflow to use the iCan is ludicrous.

When it is time to replace my mac pro, I'll be moving to a dell workstation - and once that starts, I (and the rest of my extended family) will start to transition way from Apple.

When it is time to replace the iPads (2 btw, there hasn't been a single "innovation" to justify spending the money on a newer model), we'll probably go with a Windows tablet - all we really need is the Kindle app.

The next phone purchases will probably be Samsungs - preferably something that can fit our hands, which the 6 models and later can't do.

AFA "services" - That will be a hard sell, based on how they dumped both their server hardware & software. Another missed opportunity.
 
Not sure I agree, but a lot more thought needs to be given to what else a computer can do for people better than it does today.

Apple is in a great position as owner/developer of the operating system its machines all run. If you're somebody like Dell or HP, all you can do is build boxes that run whatever Microsoft hands them. They really are stuck with "innovation" limited to the physical design of the case or improvements in things like sound quality of the speakers built in, or faster specs (which as you say are starting to outpace what most people need anyway).

The one place where I think many people want to see performance improvements is in video card speeds, especially for laptops. Historically, that's been the weak spot - because they can't seem to make a high performance GPU that doesn't give off too much heat and draw too much power to be practical in a portable. But that's really something the industry is stuck waiting on nVidia or ATI to come up with.

If I was calling the shots at Apple and *really* wanted to shake things up? I think I'd start working on a modular computer system. What I mean is, you could cancel both the Mac Mini and the Mac Pro and start selling a mini tower type of machine with interlocking pieces that stack, sort of like LEGO bricks. The basic system would be a lot like what you get now with a Mac Mini. But you could optionally add on upgrade modules that make the unit taller for such things as additional drive storage units, high performance video add-ons, and higher-end processor modules. (I realize that such a design would mean the people wanting to build a high-end Mac Pro type workstation out of it would be stuck purchasing that "base unit" that has a CPU w/integrated Intel graphics GPU that's effectively getting disabled by one of those processor upgrade modules. But in the grand scheme, that's a pretty small part of the cost of the whole thing. And it would still provide the flexibility to disassemble it and sell the components later, if you want to go back to a basic Mac desktop.)


Apple is in a bit of weird spot lately.

Personally, I think the problem is that computers have reached their logical end. You can only invent email so many times, before your innovations just become pointless/waste of money.

Point in case, I use a low end 11" MacBook Air from 2011/12. With the exception of the battery, which I plan on replacing tomorrow, I don't see the need to upgrade. The computer is by no means slow and it does everything I want it to. I don't anticipate having to buy a new Macbook for another 2-3 years. The computer will be pushing 6-8 years by that point. I suspect this is true for most people -- there just aren't enough die hard Mac fans who replace their laptops every year to warrant spending billions of dollars reinventing a box that essentially will do the same thing for most people. It can't get much smaller, or simpler, and while it can get faster, few people realistically need the added power. Most people don't care about i5,i7, Haswell or how many cores a computer has.

I want to note that 10-15 years ago, it was normal to upgrade a computer every 2 years because the differences were that noticeable. Today not so much. 95% of those who own macs use them to email, surf the net, look at Facebook and write the Reports/essays etc.

The same thing is happening in the cellphone market. There's very little innovation happening anymore, on both the android side and iOS side. Most new things coming out are just gimmicks (things like samsung's curved edges). People aren't upgrading as much.

So what does that leave?

I think apple is quite right to go in the services area. People are still going to buy their devices (albeit at a slower rate, because they aren't replacing them as often). But at least with services, they'll continue to be making money off a hardware purchase that's 3-4 years old.

The problem is that apple's history of providing compelling services is spotty at best. And does it really make sense to make your services exclusive to your proprietary platform? You're services need to be very compelling for that to work.

And thats the catch 22. Apple has developed a business model that depends on a reputation for innovating. If Apple is releasing fewer "amazing" products, will people lose interest and look elsewhere... negatively impacting the demand for their services?

It's a question of finding the right balance.. I think that's what we're seeing right now...
 
So you're doubling down on the whole "the new iPhone won't be anything like what's rumored" thing? Impressive.
What's been rumored is insignificant. We know what the back of the phone looks like. Great.

That has absolutely nothing to do with what makes an iPhone interesting, or sellable.
 
Take the name "Apple" off and what do you have? A company selling old tech on products that can't be upgraded or easily repaired - for top dollar. Add to that an OS that is buggy, and more dumbed-down and locked down with every new release. Any other company with a business model like that would have gone out of business by now.

To make matters worse Tim & Co seem to have forgotten that the  ecosystem drives product sales among devices. When only one of those products is keeping up with the competition, it doesn't take an PhD to figure out that one leg can't hold up a table. For a company with as much cash as apple, there is no excuse for ignoring every product line except iPhone.

Another problem is that AppleCare service seems to be slipping. This has always been a major selling point for me and often justified paying more for hardware. There are just too many bad decisions being made about what Apple is about these days. The only place to point the finger is at the boss. Placing the quest for profits to satisfy stockholders above all else is a VERY long way from the Steve Jobs business model.

The ecosystem point is very valid. I just jumped ship and bought a Samsung lately. Now I am having a look at my Macs and Apple TV and am wondering if it that my Samsung doesn't play nice with them or is it that they don't play nice? So I am finding now that I have cut off one piece can I cut off another?

I love Apple but it is getting harder to justify their prices for what they are offering. They longer I use other options and get accustomed to doing things differently than I was before, the more likely I continue to buy other products. Who would have thought I would be wondering if I wouldn't be better off with a Chromebook at this point? I know the CB is no match for a MBP and a really good one is pretty much near the price of a MB. The point I am making though is I am now very actively watching the competition. This is from a guy who would consider nothing else but Apple a year ago.


I really don't want to jump ship altogether but I am beginning to make my way to the lifeboat if they don't throw a dog a bone very soon. I am a dedicated Mac user since 2005 and have had every iPhone since the original.
 
The next phone purchases will probably be Samsungs - preferably something that can fit our hands, which the 6 models and later can't do.

I suggest looking at the HTC 10. Airplay support is a wonderful thing and something I sorely missed after switching.
 
I'm a full time iOS Developer and have been for a year+. In February last year, I was excited to pick up a Mac and spend money to get it. I dropped $1400 on a 13" MacBook Pro Retina.
That machine was perfect for me because I was learning. 8gb of ram was good enough but for what I paid, I got a pretty good processor and SSD speed. In college, I temporarily owned a 15" early 2013 Retina and that thing was a BEAST. It had an over-clocked 650M graphics card that performed more like a 660M. It was fast, light, had good battery life and it only cost me $1849 with my student discount. I ended up selling it because it was too much machine for me.

When I finally got a full time offer, they provided me with a 15" Retina in fall and when I changed positions earlier this year, I got moved into a 15" Retina with a 512 SSD.
However, lately I've been planning on moving into my own individual projects and for that, in order to bypass my NDA and own everything I work on, I have to use my own equipment. This isn't possible for iOS Development unless you own a Mac. You can use a VM, but your productivity and work throughput will be in the gutter with how long it will take your VM to run OSX for deploying, building and testing your application on a device.
I had given my 13" Retina to my girlfriend because her Air wasn't powerful enough for her, but I knew I would need my own device. I had outgrown the 13" Pro. I needed a quad, I needed at least 16GB of ram.

I've saved up enough money to buy a machine.. I waited for March... We got a 12" MacBook refresh. That's not a good enough machine for me. I need a quad-core. I vented my frustrations, Apple fans criticized my technical needs. "You don't need anything more powerful than a 12" MacBook. I write a million lines of code every day on my 11" Air with sunglasses on in the dark so you can do anything on a 12" MacBook" or some version of that.
Basically, power users get insulted by the status quo when we say, "This isn't good enough for us".

Well guess what guys, you won. Apple gave you your thin obsessed fleet of devices and there isn't a power user Mac in existence. Apple all but gave up on those "big ugly workhorse" devices that us workstation and production users want and will exclusively buy. And in the process, gave up our wallets.
I will not buy a Mac Pro. For one, it's a horrible design. I say that as an engineer and a professional. I'm not going to spend $3000 on a machine that is that limited. A Mac Pro is a multi-year investment. You buy it because it's fundamentally important that you are able to expand it, upgrade its processor, swap out the graphics cards and throw in multiple drives. This is because, spending $3000 on a Mac Pro isn't a BAD investment when you know you can build on the platform and get 6-7 years out of it.
I am also 10-15% on the "go". I don't WANT two machines to handle what one machine did for me in 2012. The iPad Pro is a notebook replacement? Show me Xcode on it. Show me an iPad Pro driving Firefox with my mLab database in a tab so I can track my tables, Xcode running, SourceTree open handling my repositories, all on one screen. If you can't show me that, then don't tell me an iPad Pro or an iPad combined with a Mac Pro is "ideal" for me.
What's ideal for me is a 15" MacBook Pro that's actually professional grade. It should have the latest processor. Because a $2000 15" notebook being driven by a 3 year old architecture that's already N-2 iterations behind is pathetic. It should have a discrete graphics card that's worth its weight in USD. Having to spend an extra $499, which could literally BUILD you an entire PC with better graphics, just to get a 2GB 3 year old architecture AMD card is even more pathetic.
The only impressive aspect about the 15" MacBook is the SSD speed and the screen quality. That's it.
For any of the "pro" stuff I do, which happens to be within the confines of Apple's VERY OWN ecosystem, I'm hindered by their obsession with thin and light.
Are you someone who likes thin and light? That's great, there's literally an entire lineup of THIN and LIGHT devices JUST FOR YOU. It's called EVERYTHING Apple makes. But for those of us who don't mind "marginally not-so-thin" as a cost for having a Skylake processor, an R9 M480X and either user upgrade friendly memory or just max out every sku with 32GB, we are left HANGING. And why? All so Apple can net capture the few people who are thin-and-light obsessed that are willing to cough up $2000+ because they want a bigger screen.
I'm actually in the middle of an Android training camp. And to be honest, I'm probably just going to abandon exclusivity in my Apple based career because the tech just doesn't live up to my standards.
You guys disagree with me? That's fine. I'm sure it works out GREAT for Apple that they are going to lose me as a customer.
Because in all honesty, you have 0% chance of convincing me that somehow a "less powerful" machine is somehow good for me as an engineer.
Oh and for those of you who are like "OH I DO ALL THIS STUFF ON THAT MACHINE SO THEREFORE YOU'RE WRONG".
No, you are wrong, forever and always. People being okay with inferior tech wouldn't be IMPEDED by having superior tech. "Yeah but if that tech adds weight, then it hurts me because I prefer mobility and battery life and sexy thin lines". Read what I said before... You already have a LOT of devices that are just right for you. If you disagree, that's fine, but you should also be okay with Apple's sales continuing to decline, because you will NEVER convince people like me that these underpowered machines are good enough for us.
 
What's been rumored is insignificant. We know what the back of the phone looks like. Great.

That has absolutely nothing to do with what makes an iPhone interesting, or sellable.
Ya, that whole "no headphone jack" thing is pretty insignificant, agreed. Can I ask what you find so fascinating about the front of the iPhone? I'm at a loss.
 
The amount of storage on an iPhone is not the real subject of this thread but for many of us, 16Gb is perfect. My 16Gb iPhone 6 has 7.6Gb of storage free. Please explain why I need more storage? Come on, the floor is yours.
Note, we are not all app junkies you know.
The subject of the thread is their earning and I'm offering my opinion on what I think could be contributing to a decline in iPhone sales. I don't think it's really necessary to explain why you individually would need more storage but Apple is trying to push features like Live Photos and wants people to use services like Apple Music. Those things can both take up a lot of space.
But it's just an opinion I'm no financial analyst. Some articles I've read say that maybe Apple just isn't innovating enough and not really making enough changes to their iPhone lines year over year but neither is Samsung and their sales are still on the rise unfortunately.
 
The subject of the thread is their earning and I'm offering my opinion on what I think could be contributing to a decline in iPhone sales. I don't think it's really necessary to explain why you individually would need more storage but Apple is trying to push features like Live Photos and wants people to use services like Apple Music. Those things can both take up a lot of space.
But it's just an opinion I'm no financial analyst. Some articles I've read say that maybe Apple just isn't innovating enough and not really making enough changes to their iPhone lines year over year but neither is Samsung and their sales are still on the rise unfortunately.
The mobile business is maturing.
 
.....Placing the quest for profits to satisfy stockholders above all else is a VERY long way from the Steve Jobs business model.
Indeed. I seem to remember Steve's idea was: If you make great products people love, the profits will follow.

Currently the product line-up seems to be getting more and more convoluted. At the expense of simplicity, they seem to want to please everybody. Not defending Tim here, but of course without the multitude of patents to his name, as well as the vision of Steve, his only job security at Apple is profits.

I wish he would spend less time (very publicly) pushing his social agenda. That seems to annoy more people than make him new friends, especially when the product line-up appears to need attention.
 
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Not sure what that's supposed to mean, but I do know that compared to Cook, Steve was practically a blabbermouth. Cook has nailed the lid on tighter than Steve ever could or did. The rumors sites are gasping for O2, leaving some to assume that nothing is happening at Apple. I have no doubt that this is completely not the case. Apple's new product development cycles are about the same as they've always been (long). Nothing has changed except that we are hearing less and less of substance about what they are developing. Confusing a lack of knowledge for knowing something is alway going to be a mistake. I see a lot of people making it.

I hope you are right.
 
Those who have shorted AAPL are feeling good.

Good feeling lasted only so much.
[doublepost=1469575494][/doublepost]
The Wal St soothsayers will mark APPL down 10% even if the result come in at the top end of guidance. Even if they exceed the top of the guidance range the shorters will make hay. This is as inevitable as the sun rising in the East.
Perhaps APPL should change its ticker name to MSFT? :)

How's the sun doing today?
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I had shares, I don't have now. I'm not a stock lover, I'm an investor, since July 2015 I'm short AAPL.

Don't try to bother me insinuating that I don't have money, I couldn't care less. Stock buybacks are for losers, that's what they're. Winners increase EPS by increasing revenue and profits.

Good strategy. Have a nice covering day.
 
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I have skimmed most of this thread and have heard a lot of theories about the future of Apple and computers and phones. What amazes me is that everybody seems to conclude that these products have matured and not much can be done with them except minor bumps. Okay so why is nobody even talking about the fact that Apple is 90% certain to enter a market they have never innovated or competed in before which is the automobile?

How many cars are in existence in the world? Apple has a great chance to change things in some ways nobody thought possible just like they changed the phone. Will that eventually happen? Nobody knows for sure but that is the next biggest revolution I can see at the moment coming out of their pipeline. Tim said there were a few products left that were direct descendants from Jobs. Could the car be one of them? They have never sold a car before and if they put something good together they have unlimited growth for 10 years just like with the phone.

I know it isn't a real product yet but this is just food for thought for the people saying that Apple can not innovate or there is nothing in their product line that can be further expanded upon. The car market is huge and there are too many rumors to suggest they are actually actively developing a car.
 
Seriously?

You're signature concerns me. Are you suggesting no one should EVER configure their phone or computer the way that suits them??.
Are you seriously suggesting that Apple is so all knowing and perfect that whatever they set as an auto feature (I'm looking at you 'reopen all programs and Windows on restart') is the "right" way and shouldn't be alterered?

Heads up, there's a reason Apple in iOS 10 is finally allowing users to delete apps on their iPhones that come automatically installed: Because millions of people felt it was useless crap occupying screen space on their phones.

Apple is not 'smarter' than me for forcing features and programs on me that I know I don't need or want. To think otherwise is strangely Orwellian.

People who don't know how to configure their devices to their liking, or are AFRAID to ... are the ones to be pitied.
 
You're signature concerns me. Are you suggesting no one should EVER configure their phone or computer the way that suits them??.
Are you seriously suggesting that Apple is so all knowing and perfect that whatever they set as an auto feature (I'm looking at you 'reopen all programs and Windows on restart') is the "right" way and shouldn't be alterered?

Heads up, there's a reason Apple in iOS 10 is finally allowing users to delete apps on their iPhones that come automatically installed: Because millions of people felt it was useless crap occupying screen space on their phones.

Apple is not 'smarter' than me for forcing features and programs on me that I know I don't need or want. To think otherwise is strangely Orwellian.

People who don't know how to configure their devices to their liking, or are AFRAID to ... are the ones to be pitied.
Go back to staring at the back of your phone, im sure you'll get a lot of use out of it.
 
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