February 27, 2007
Apple: The Rebuttle - Why Apple is Not As Good as Everyone Says it is
Apple is a company that has been around for a long while, and their stylish products have set them apart recently. They are the dominant player in the mp3 player market, and their iTunes store is top of the line in the online music store industry. Their newest product announcement, the iPhone has generated a great deal of positive press, and people worship the former hippy turned business man Steve Jobs like he is God. Many see all of these things as positives, but I would disagree. Lets start with Mr. Jobs. Steve Jobs is part of an options backdating probe, and, while most say "oh he'll get away with it, he's Steve Jobs," I ask you this: what better person could the SEC find to make an example of? No one, thats who. People think Jobs can do no wrong. Maybe I'm wrong, maybe he can. maybe he isn't just a mere mortal, and maybe I'm the Queen of England. I will say this with absolute certainty, Steve Jobs is getting old, and at some point he will step down. What happened the last time he left Apple? Bad things, and their company was absolute garbage until Jobs came back. Without Jobs, Apple is nothing. So, what's wrong with the iPhone? Well, it is over priced and overrated. I seem to remember some news coming out about a certain product called Vista, which was greatly hyped, but the roll out is not going as well as everyone had expected. I expect the same thing to happen with the iPhone. At $399 or $499 each, I just can't see anyone buying them in any gigantic volume that people are expecting. Business people like their Blackberrys, and if people are hoping that they'll be able to get a big deal on an iPhone, like $200 off with a new 2 year plan, they're out of their minds. It is not going to happen. Also, the iPhone isn't really all that innovative. "Oh, but it has a touch screen!" Who cares? That is just one more thing for me to scratch. Let use that and ignore the fact that it isn't even a 3G phone, so it is limited in its ability to connect using the latest generation of wireless technology. Sure it has wifi, but if I am using a cell phone, why would I be excited to only be able to use real high speed when I'm by a wireless access point? I don't have anything bad to say about iTunes, I think that that is a quality business, but the iPod I will say something about. The iPod has saturated the market, what happens when you saturate the market and max out your market share? People stop buying your stuff. What does that mean? Slower earnings growth. Some will dismiss me as a non-believer in the glorious story that is Apple and that I'm just being cynical. Perhaps they're right, but you'll make a lot more money if I'm right because there are a lot more of them than there are of me.
Posted by jkill at February 27, 2007 08:18 AM