Apple Just Made 2 Terrible Mistakes

Apple's (NASDAQ: AAPL  ) 5% selloff on Wednesday seems justified, even tame, compared to the possible ramifications of its iPhone announcement.

Neither of Apple's two new iPhones -- 5C and 5S -- address the challenges facing the company's handset business. Although the iPhone's market share has been declining rapidly, there is no low-cost iPhone coming; despite the fact that large screens have been popular on Android handsets since mid-2012, it won't be until late 2014 that a big iPhone goes on sale -- if it ever does.

Apple investors appear disappointed with the company's latest phones, and for good reason.

Apple has ceded the emerging market to Android
Contrary to widespread speculation prior to Tuesday's event; Apple did not change its pricing strategy. The iPhone 5C is $550 off contract (over $700 in China). It's less expensive than the iPhone 5S, but on par with what Apple has charged for its year-old iPhones in the past.

In fact, it basically is just a year-old iPhone: specs wise, it's virtually identical to last year's iPhone 5, except with a colorful, plastic body. I'm guessing that plastic makes it cheaper to build, and thus more favorable to Apple's margins, but those margins could come at the expense of market share.

While the iPhone has held up in countries like the US, the same can't be said for emerging markets like China and India. Here, Google's (NASDAQ: GOOGL  ) mobile operating system rules the roost, as Android OEMs are able to offer phones at sub-$100 price points.

Many consumers in these economies simply cannot afford to purchase expensive phones. By offering a cheaper iPhone, Apple could've won back some market share -- but it appears that management doesn't care about that.

The extra inch matters
Unlike a cheaper iPhone, a larger one wasn't expected. Still, it would've been nice. If Apple sticks to their typical time frame, the iPhone 6 will be announced next September -- and by that point, it will have been more than two years since Samsung (NASDAQOTH: SSNLF  ) released the Galaxy S3.

Although Samsung is often derided for copying Apple, this is one area where the Korean tech giant has been the innovator. The GS3 was the first phone to popularize the concept of a larger screen: at 4.8-inches, the GS3 is massive compared to the iPhone. The GS4 is even bigger, and Samsung's lineup of Note phablets absolutely dwarfs the iPhone.

Other companies have followed in Samsung's footsteps. HTC, LG, Nokia and Motorola all have flagship phones with screens at least 4.5-inches, as do major Chinese smartphone makers like Lenovo and Xiaomi. Apple is the only major smartphone manufacturer missing from the list.

Tepper's warning
Back in May, hedge fund manager David Tepper warned that if Apple didn't do either of those things -- launch a larger phone or a cheaper phone -- he was selling. It will be interesting to see if he makes good on that statement.

Regardless, the reasoning behind Tepper's assessment was sound. The lack of both those products could wreak havoc on Apple's iPhone business, which accounts for about two-thirds of the company's profits.

There are plenty of reasons people buy the iPhone, but the app advantage is definitely high on the list. Mobile app developers favor iOS, and the iPhone generally gets the latest and greatest apps far ahead of rival platforms.

But if Apple's market share continues to dwindle, that could change. When it comes to operating systems, market share matters: Developers won't waste their time and money coding for a platform few use. This is why BB10 and Windows Phone, with their small base of users, continue to lag far behind iOS and Android.

Research firm Flurry warned that Apple's deteriorating position in emerging economies could spill over to the rest of the globe. Chinese developers favor Android due to its dominance in their home country, and crucially, they've begun to export. Chinese-made apps are becoming popular in South Korea and Japan, and should they make it to the West, they could give Android a leg-up over iOS where it matters most.

Lack of a larger screen shouldn't affect Apple's market share in emerging economies, but it could start to weigh on its popularity in key Western markets. Anecdotally, I've noticed a lot of Apple fans complain about Apple's continued use of the 4-inch form factor; having to wait yet another year for a bigger phone might prompt some of them to switch.

Samsung is certainly not taking chances. Its Galaxy Note 3, which will go on sale around the same time as the iPhone 5S and 5C, sports a monstrous 5.7-inch screen. If that's too big, consumers can always go for the smaller, 4.9-inch GS4 or the 4.3-inch GS4 Mini. And if for some strange reason that's not big enough, Samsung's Galaxy Mega just recently arrived in the US.

The entire advantage to having a smartphone lies in its ability to do things other than make calls -- browse the web, use apps, watch videos. Here, larger screens excel, making it easier to accomplish those tasks. And given that Americans now spend more time watching their phones than their TVs, it's little wonder that larger screens are increasingly preferred

Investing in Apple
Clearly, the market was disappointed by Apple's announcement, and it isn't hard to see why. Apple's decision not to release a bigger or cheaper iPhone could weigh on sales in the long-term.

Ultimately, when it comes to smartphones, market share matters. Without it, Apple will lose its software advantage, something that sets it apart from the competition. Neither the iPhone 5C nor iPhone 5S will do much to improve Apple's position; instead, Apple continues to allow Android to dominate in emerging markets, and Samsung to lead in screen size.

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Read/Post Comments (77) | Recommend This Article (30)

Comments from our Foolish Readers

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  • Report this Comment On September 12, 2013, at 4:20 PM, dbtuner wrote:

    want a bigger iPhone? It's called the iPad Mini

    want a cheap iPhone? It's call the iPhone 4S

    want inovation? It's called the A7 64-bit chip with M7 motion co-processor and fingerprint scanner

  • Report this Comment On September 12, 2013, at 4:22 PM, CraigNotGreg wrote:

    "But if Apple's market share continues to dwindle, that could change. When it comes to operating systems, market share matters: Developers won't waste their time and money coding for a platform few use."

    This is the flaw in your argument. Developers ultimately care about the absolute number of users they can reach, not market share. There are 700 million iOS users now, even before the new phones go on sale. iOS users also spend more on apps/music/accessories than Android users do. Developers aren't abandoning the IOS platform anytime in the foreseeable future, which is why Apple doesn't care about selling phones for little to no profit in emerging markets.

  • Report this Comment On September 12, 2013, at 4:31 PM, Foolorama wrote:

    I just can't get my head around how a bigger iPhone would help much. There is demand, but I'm really not sure the demand is close to where you think it is. I keep flashing on a lovely Asian woman holding this huge phone up to her head...

    There's no question that Apple's 5c strategy was surprising. I also expected an "own the market" move by pricing on the low end. But unlike you, I'm thinking that competing on the low-end may not be a strategy at all. With every other garage in China cranking out their own Android phone, there doesn't appear to be much of a future there. And my strong sense is that Androids best days are behind us - mostly due to the security issues which will become more and more apparent and important as consumers demand and entrust more to their phones.

    After my initial shock at the higher price, I began to look at the 5c product as a product. The more I look at it, the more I like it.

    The form factor is BEAUTIFUL. This product is the perfect representation of what you can do with combining design both on the hardware and software end of things - something no competition can accomplish right now. The translucent views in software combine gorgeously with the multiple hardware color options to provide something I could easily see on the catwalk in high fashion. Just think of what the Harajuku girls will do with this one... Now imaging some form of "wearable" computing device along with, and I think you'll start seeing the outlines of a strategy from Apple.

    This really isn't a move to cheaper, but a lateral move into something different - accessories on steroids. And, contrary to popular belief, I think it will be a smashing success.

  • Report this Comment On September 12, 2013, at 4:33 PM, yypal wrote:

    Hi this is my 1st comment ever as a Fool member. Give me feedback if I'm right. Samsung is cannibalizing itself out of the tablet market. I've long AAPL, and who shouldn't be (only fools sold the past 2 days). I bought more. When you cannot hold a phone with 1 hand, it's no longer a viable phone. AAPL understands that. Samsung and others are moving towards a tablet size comuting device. Just give it some time, and AAPL and grow share in this segment, and when analysts finally realize that they should refer to my public comment here.

    yypal

  • Report this Comment On September 12, 2013, at 4:40 PM, MrRuprect wrote:

    The Apple bashing continues.

    Just keep in mind no one really knows how successful apples new phones will be until after a quarter or two.

    Also people who complain about apple not having a cheaper iphone are the same people who will complain when they make a cheaper phone that the profit margins have shrunk, or that Apple is ruining it's brand with cheaper products, and how the cheaper phone has cannibalized sales of the flagship phone.

    The truth is apple will probably not recapture it's formal stock glory without a new game changing device. China mobile will help, but asking apple to compete with cheaper phonemakers is akin to asking Bentley to make a car that competes with a Yugo. Apple makes high end devices that are easy to use, and last. That's their strategy

  • Report this Comment On September 12, 2013, at 4:44 PM, Henry3Dogg wrote:

    "The extra inch matters"

    Damn right. It ruins the ergonomics of the larger phones.

    OK if you've got arthritis or a degenerative eye condition, but hardly appropriate for the rest of us.

  • Report this Comment On September 12, 2013, at 4:47 PM, annah77 wrote:

    You know how everyone has been on the "mobile phone market saturation" bandwagon??? The iPhone 5S and 5C are your answer! Read on...

    When I started to see the colors of both phones, all of a sudden I had impulse to say I want one of each!!! Then I had a thought... What IF the service providers made it easier to switch from one phone to another?

    Now the phone is NOT just a necessity; it becomes an accessory. Why dress up a phone with a clunky cover when you can switch phones instead? NOW, it becomes like wearing a different expensive watch. THAT might be your proverbial "iWatch"... so to speak.

    Second point... why should they lower the price and compete in an overcrowded cheap mobile phone market? Would you aspire to a Rolex if they dropped the price to $50??? Hell, no!

    If I had an impulse to want TWO cell phones -- a gold 5S and a yello 5C and I am NOT a teenager... What do you think d a teenager might want???

    If my hypothesis is correct, I think this is a brilliant move by Apple! No market saturation... retain high margins... keep on laughing all the way past the cynical short-sighted "analysts."

  • Report this Comment On September 12, 2013, at 4:48 PM, bobbydig wrote:

    Again, Motley Fool missed the mark. Opinions, which this site is based on, is different then facts. Facts, company who sell cheap products with no margins have a short life, example Dell and Gateway. Where are they today? Secondly Apple timing is perfect. Samsung and Moto released product during vacation or non-buying season. To me, that was plain stupid. That's why the Galaxy tanked so early (and BTW is not that great) and no is lining up for Moto X, named No One Cares. They maybe the best two Android products, but not enough to switch iPhones users. Both company have failed at switching users. Instead they did the PC thing. Dell steals from HP, but never really gets a loyal customer, just one offs. Not a smart way to stay in business.

    Apple nailed it. Blazing fast phone and new iOS.

    Nothing but bad and misleading advise on the site. Readers beware.

  • Report this Comment On September 12, 2013, at 4:50 PM, annah77 wrote:

    P.S. Teeangers don't read cynical analyst posts!

  • Report this Comment On September 12, 2013, at 4:53 PM, lexpdx wrote:

    This is also my first comment as a Fool. I think the author of this article is crazy to believe innovation exists in creating a phone with a bigger screen. Apple's chief concern has been designing products that are aesthetically pleasing, highly functional, and forward thinking. The fingerprint scanner on the new iPhone is actually exciting. It's futuristic. That's the kind of innovation I look for as a consumer. More and more I feel like other phone makers are go-go-gadget types: slap a new feature on wherever it fits, house the whole thing in a bulky jacket; Apple on the other hand is like a Swiss army knife, each feature designed to fit perfectly inside an attractive shell.

    I agree with Icahn. Buying after the sell-off was a no-brainer.

  • Report this Comment On September 12, 2013, at 4:54 PM, youdafoolman wrote:

    The two new iphones are amazing. China Mobile will be a true indicator to how it will be priced in the emerging markets (we really don't know just yet), so we will have to wait for that one.

    Apple just released new products, now those loyal to Google, Samsung, Microsoft, Blackberry, ect will come out and attack in any manor they can and this is the Fools version I guess.

    Just go to any Apple store, it's packed right now, it will be packed at the close today, tomorrow, and the next day..

  • Report this Comment On September 12, 2013, at 4:55 PM, yypal wrote:

    There is the portable cell phone market (AAPL)

    and There is the tablet market (AAPL)

    Then there's the phablet market (Samsung)

    A & B = Market share & > Stock $$$

    C - A - B = less market share < $$$ out of business

    If you want to retire early buy AAPL

    yypal :O)

  • Report this Comment On September 12, 2013, at 5:00 PM, yypal wrote:

    I can not wait to get my hands on an IPAD mini 2!

    Hope AAPL will announce it in October....

  • Report this Comment On September 12, 2013, at 5:09 PM, JazzQuipster wrote:

    Shouldn't investors be more concerned with profit margin rather than market share? Why join the great race to the bottom for the sake of increased market share?

    Just look at the computer market. PC's are dirt cheap and operate on thin profit margins. Meanwhile, Apple still gets $1,000-plus for MacBooks and maintains a small but respectable share of market because they sell quality products that some people prefer and are willing to pay a premium for.

    Another point that I think is missed is that Apple stands to sell a lot of phones at a healthy profit through China Mobile. Who cares if they don't dominate the Chinese market? All they have to do is carve out their niche and serve it well.

    I say good for Apple for maintaining respectable profit margins.

  • Report this Comment On September 12, 2013, at 5:28 PM, tlwpb wrote:

    Well, i think Mr. Sam Mattera is wrong on this issue. You see Apple is the LV and all others are just Coach! Do you ever see LV makes cheap hangbags? Profits is mostly higher in quality and luxury products. I believed the 5S will be brought mostly by those rich Chinese and the 5C will definitely be brought by the not so rich Chinese. Apple is always the status that one got it made. Do you remember many year ago, there was one BMW ads that stated: When a Japanese make it, he/she will drive a BMW. No matter how Samsung cheat or copy the real thing they ever compared is still Apple.

  • Report this Comment On September 12, 2013, at 5:36 PM, gametv wrote:

    This analysis is meaningless. Yes, Apple does not have a strategy for the low cost portion of the smartphone business. Let me tell you a secret. They dont want it! The question an investor should ask is whether Apple will generate more revenues and profits in the coming quarters based on these 2 phones than last year's iphone 5 launch. The answer seems to be a resounding yes! Japan's NTT Docomo will add millions of units and Apple is priced at very attractive price points in markets where the phones are subsidized. The new ios7 will generate huge interest with customers (something they didnt have last year). The price/earnings ratio is at 8x earnings (less cash) on next year's projected revenues. Apple made a strategic decision to generate the highest profit in the holiday season from subsidized markets on their new phones. Expect that they will introduce another strategy and maybe other phone models, for the unsubsidized markets in 2014. The iphone 6 is rumored to release in 6 months from now - with a bigger screen. Apple is showing flexibility in pricing on the 5C (walmart's $79 price) while they hold pricing to a premium on the 5S (with a cool new feature - finger print security). They also have a new trade-in program, which helps customers use the residual value of their iphone (much higher than Samsung). This is just plain old smart marketing. But Sam misses all these points, because he is listening to the deafening sound of Wall Street ignorance.

  • Report this Comment On September 12, 2013, at 6:41 PM, marv08 wrote:

    Apple made a step to improve its margins, that is something investors should care more about than buying market share. The iPhone 5 and the iPad Mini were THE main reasons for the decline in Apple's margins. Even selling the same amounts of phones as before would now improve the bottom line. If this is good for consumers is a different question, but, really, not much has changed for them. There are still 3 models and still the same 3 price points.

    There will still be some market share growth. 1. Product differentiation creates a bigger pool of people attracted by their devices. Not everybody wants aluminium. 2. The addition of China Mobile and NTT Docomo will result in additional buyers. 3. The buyback program will provide a decent number of low cost devices for emerging markets without even touching any margins.

    Apple is also rumoured to be testing bigger phones. They will release it when they are satisfied with it. That means that they have to solve the problem with current large displays being of low quality (pentile displays and AMOLED color reproduction do not meet Apple's standards) and power requirements of larger IPS displays. They will also eventually have to establish an additional aspect ratio and/or resolution in their development tools, as simply scaling up the iPhone 5/5S/5C would result in an odd device and an effective resolution being less than "retina". Android vendors do not care for these things, they simply run the same application on every device, from 3.5 to 11". Apple would never do that.

    Yes, a bigger phone would increase the addressable market. But to sell it as a Apple device, it has to be meeting their standards and fitting the ecosystem. Until this is ready, having the best selling and most profitable smartphone in history (despite or because of its size, whatever you prefer), is quite good.

  • Report this Comment On September 12, 2013, at 6:53 PM, jda24601 wrote:

    It's a good thing that analysts and bloggers don't run America's great corporations. There is no doubt a very good reason for that. The 5C will appeal to a significant number of additional customers in China and other emerging countries. Used 4's and 4S's will find their way into the hands of yet another layer of customers. Unlike most Android phones, iPhones don't go in the trash or get recycled when the original owner decides to upgrade. They continue to be used by paying customers.

  • Report this Comment On September 12, 2013, at 7:16 PM, Jjkiam wrote:

    All I can add to the threads in this list of comments is EXACTLY! Why sell for less when you can sell for more. This illusion that a premium brand needs to compete with low cost nonprofit competitors is the basis for the irrational market response yesterday. Great brands preserve their value by NEVER commoditizing their products! Apple didn't become the most valuable company in the world by competing in the race to zero and hopefully never will. All the analyst concerns over market share ignor the history of all the great premium brands that remain successful! Mercedes, Prada etcetcetc.

    And as a shareholder I would rather see Apple sell less for more than more for less. They have unique and growing competitive advantages in their ecosystem which all their competitors including the ALLMIGHTY Samsung DON'T HAVE!

    All this talk about the new 5C being priced to high in China ignors the incredible fact that China has the largest middle and wealth class than any other country on the planet! There is plenty of room for Apple to grow their brand by reaching this part of China and not worrying about the Chinese market that consumes the lowest cost cheap clone products they can afford.

  • Report this Comment On September 13, 2013, at 4:28 PM, Buzzy43 wrote:

    Apparently you can say what ever you like on these pages irrespective of whether research is done or not. I hope you don't get paid for this.

    http://www.kantarworldpanel.com/Global/News/Record-share-for...

    "Apple continues to perform very well in the USA where it has grown its share to 43.4% of sales. It is also continuing to show strong year on year growth in Britain, France and Mexico. "

  • Report this Comment On September 13, 2013, at 4:31 PM, willinginvestor wrote:

    To those who have posted thus far, spot on! You've nailed it.

  • Report this Comment On September 13, 2013, at 4:41 PM, Cuftbll wrote:

    Funny how analysts are now saying they may have missed the popularity of the 5C would be with all the colors to what they call 'normal' people, which to them is consumers.

    You idiots!!!! Apple actually knows what they are doing! The phone wasn't built for emerging markets!!! 1 million 5Cs and counting on day 1.

    I wonder if there will be any 5Cs on the 10-18 year old age crowd's Christmas list? I think so. Pure genius Apple. Pure genius.

  • Report this Comment On September 13, 2013, at 5:01 PM, QuartCoffee wrote:

    I won't argue with whoever posted the last ten comments in a row.

    I was disappointed that they didn't make a bigger screen. That's just a personal preference. I was hoping for something that would improve my experience. Friends have phones with bigger screens (not huge, just bigger) and it sure makes it easier to use the phone to watch videos/read the news.

    I was hoping for a ipad mini with retina. My current ipad mini reminds me of an old CRT monitor if I try to read the news or a book on it (blurry). I suppose it's ok for kids playing games.

    Probably not a good long term solution to try to go after market share in China. Cheapens the brand. So they will just be a fringe player - that is ok.

    I do think they lose a lot of market share by waiting two years for a new form factor. I'm a long time Apple fan (25 years!!) and have Apple everything, but when it comes to phones, I am very interested in competing brands. I just want a bigger screen.

    The processor improvement doesn't affect me. I don't play games.

    Fingerprint technology - this is old technology, isn't it? (Motorola). Too many privacy issues for me.

    No iWatch, no iTV, no new iPad Mini, no new iPhone. Why did they even bother having an event? They should have just put out a press release.

  • Report this Comment On September 13, 2013, at 5:07 PM, fauxscot wrote:

    I won't waste too many words on polite.

    From paragraph 1, this article is hysteria and FUD. It's also not the product of sound reasoning or experience.

    Your opinion, compared to the seasoned judgement of Apple management, is worth not a lot. There are two metrics to follow. One is NI (it's at the bottom of the income statement, a basic financial instrument you should investigate, I think. The other companies out there don't seem to be able to manage theirs very well.)

    The other is EPS. It is a large number, and the reason is because of that NI line and the number of outstanding shares. Perhaps you've heard of the buyback that is reducing the "S" term in E/S?

    Sorry. (My "Ashraf Eassa Ignore" pile is getting full of new names.) FUD and inexperience.

  • Report this Comment On September 13, 2013, at 5:08 PM, Jaybones21 wrote:

    So apples market share isnt what it was. But think about how many people already have iphones. Its still the most used operating system even if samsung is out selling. Well by the time samsung made a decent phone millions and millions of iphones have already been sold. So to say that Android is completely winning is wrong. Most web traffic and app usage comes from ios products.

    Also the 5c and 5s is apples midway mark to something big. The iphone 4 was good then came the updated verson 4s siri and ect. Then the new record holder 5 came out which i have. Im not getting a 5s and paying full price. Im going to wait till next years phone and pay the cheaper contract cost. Not saying the 5s isnt a big deal cause it is with the new features. But what im saying is maybe Apple sand bags the competition. Maybe they looked at there sales numbers and they know when to strike a new boom every 2 years. Instead of samsung selling anything and everything all at once. Droids are a fad and it will soon be noticed. Stick with old faithfull!!

    Apple is doing everything right and is obviously a profiting company they arnt dumb they didnt get dumb overnight either. The 5s is a game changer.

  • Report this Comment On September 13, 2013, at 5:16 PM, rh33 wrote:

    I agree, and I think you could predict this eventuality. Apple's nearly fantastic stock price since 2008 has depended on compellingly attractive products yielding great market share gains and tremendous margins at the same time. That is a confluence that usually can't be sustained for long, usually much shorter periods than Apple has already managed to sustain it. It had to end, and this is probably a sign of the end. Yes, I know Apple is a special company that doesn't follow the usual rules, but it isn't that special. It is of this world. I think it is wise to expect another substantial stock depreciation within the next year or two. Note the "Within...." It could happen any time. While I regret not being purchasing the stock in the past, it certainly does not look like the present is a good time to be a purchaser or even a holder.

  • Report this Comment On September 13, 2013, at 5:20 PM, Prudent1959 wrote:

    All these morons think they can run a $500 billion company. The comments are like fans watching a boxing match. Everyone thinks they know how to fight but can't throw a punch. All I know is that Apple makes all of the money in both smartphones, tablets and computers. Apple spends more money on R&D than all of their competitors combined. Having a low priced product is not the answer. Just look at the competitor results which proves the point. Selling to customers who prefer knockoffs is not a customer you need. You can buy a $50 Rolex knockoff and you're lucky it keeps time for a month. Carriers and retailers like Walmart will make the iPhone affordable. The 4S is the low priced solution for the price constrained customer. It's free in the US and many parts if the world. You can't sell it for less.

  • Report this Comment On September 13, 2013, at 5:21 PM, brianintx wrote:

    My soon to be 15 year old loves the 5C, and she has told me her favorite colors, in order. I think the 5C is going to sell.

    And I'm buying a 5S for my wife and one for myself this Christmas. :-)

  • Report this Comment On September 13, 2013, at 5:23 PM, secularinvestor wrote:

    What an incredibly ignorant article. The author is totally out of his depth and hasn't a clue about what is really happening in the smartphone market the smartphone market, how it really works and why Apple is by far the most successful and profitable company in mobile computing.

    "Although the iPhone's market share has been declining rapidly," Really. the author has naively accepted hook, line and sinker the inflated "shipment" claims of Android generated by paid for PR outfits like Strategy Analytics.

    If you look at actual user buying survey's by Kantar it shows that in the last three months the iPhone has GAINED MARKET SHARE YonY in the USA, UK, France, Spain, Australia, Italy, Mexico and the EU five.

    Two thinks make Kantart results especially significant.

    1) This surge is iPhone market share has been with Apple offering the nine year iPhone 5, beating the latest offerings from Samsung, HTC, Nokia, and Blackberry.

    2) Kantar belongs to WPP, who are Samesung's' main PR, advertising and marketing agency, yet their data shows Apple doing far, fare better than the phantom "shipping" numbers claimed by Apple's competitors.

  • Report this Comment On September 13, 2013, at 5:23 PM, yaxzone wrote:

    Seriously, is this guy just trying to get publicity?

    This editorial is just a joke.

  • Report this Comment On September 13, 2013, at 5:24 PM, ranchrfl wrote:

    "Here, Google's (NASDAQ: GOOG ) mobile operating system rules the roost, as Android OEMs are able to offer phones at sub-$100 price points."

    Anyone know how much PROFIT GOOG or the Android OEM's are making on these. People who are too cheap to buy quality don't spend a lot on apps>

  • Report this Comment On September 13, 2013, at 5:25 PM, secularinvestor wrote:

    What an incredibly ignorant article. The author is totally out of his depth and hasn't a clue about what is really happening in the smartphone market the smartphone market, how it really works and why Apple is by far the most successful and profitable company in mobile computing.

    "Although the iPhone's market share has been declining rapidly," Really. the author has naively accepted hook, line and sinker the inflated "shipment" claims of Android generated by paid for PR outfits like Strategy Analytics.

    If you look at actual user buying survey's by Kantar it shows that in the last three months the iPhone has GAINED MARKET SHARE YonY in the USA, UK, France, Spain, Australia, Italy, Mexico and the EU five.

    Two thinks make Kantart results especially significant.

    1) This surge is iPhone market share has been with Apple offering the nine year iPhone 5, beating the latest offerings from Samsung, HTC, Nokia, and Blackberry.

    2) Kantar belongs to WPP, who are Samesung's' main PR, advertising and marketing agency, yet their data shows Apple doing far, fare better than the phantom "shipping" numbers claimed by Apple's competitors.

  • Report this Comment On September 13, 2013, at 5:29 PM, cazic99 wrote:

    This article is just plain dumb.

  • Report this Comment On September 13, 2013, at 5:30 PM, konadan1990 wrote:

    A larger screen would be nice, but iOS 7 is the key differentiator. It will be available as a freebie for the 4, 4s, 5c, 5s. It makes the older iPhones new. The 4's will be free. Walmart has announced it will discount the 5c. This is essentially is a battle between iOS 7 and the latest Android. iOS7 on an iPhone will be better than the latest Android version installed on all so-called Android phones.

  • Report this Comment On September 13, 2013, at 5:31 PM, cazic99 wrote:

    Once the person person gets the 5C in Junior High or High school, rest will be history....Apple is genius

  • Report this Comment On September 13, 2013, at 5:34 PM, cazic99 wrote:

    Hopefully articles like this will come out more, knock the stock down more so I can buy more APPLE

  • Report this Comment On September 13, 2013, at 5:41 PM, secularinvestor wrote:

    The author also fails to understand that Apple's success is based on being able to charge premium prices for the best combination of hardware, software and huge range and quality of its media eco-system.

    One of the huge mistakes of pundits is to claim that Apple has lost its innovative mojo. With the flagship 5S Apple has produced by far the most advanced smartphone. It is a generation or two ahead of the competition who are again left trailing trying to copy to catchup.

    With the iPhone 5S Apple is:

    * FIRST with ARM's 64 bit architecture in the incredibly fast A7 processor. It is an amazing 40 times faster than the original iPhone and has twice the processing and graphics speed compared Phone 5, which is still one of the fastest smartphones around.. Just wait for the bench tests of the 5S and try using it and wyou will find that it is by far the fastest smartphone on the market and that power and speed enables a lot of new features.

    * FIRST with the separate M7 chip which hugely reduces battery drain while operating 24-7, which will lead to many new mobility and fitness Apps and gadgets.

    * FIRST with the their state of the art Authentec fingerprint scanner which provides really easy to use, ultra reliable and exceptionally high level security

    * FIRST with the really well thought out, advanced new camera hardware and software which is so powerful that it needs that 64 bit processing power

    * FIRST with a mobile OS that works with both 32 and 64 bits. The iOS 7 which has been highly acclaimed by most critics and is almost certainly going to be a huge hit with users.

  • Report this Comment On September 13, 2013, at 5:51 PM, RickyShaw wrote:

    This is kind of absurd, but not surprising from a group of people whose goal it is to sell gimmicky portfolios as opposed to having them do their own due diligence. Whatever happened to the Unemotional Investor? Exactly.

    I don't expect a hedge fund manager to know any more about Apple's inner workings than anyone else really does. They are not that forthcoming.

    Your biggest mistake is not realizing that Apple is a brand..a la BMW, Gucci, etc. They are a brand that caters to the less price conscious segment of the market. They may end up with fewer users than Android - but those users spend way more on app purchases than the typical Android user (how many of those sub $100 phone owners are using their phone to call an Uber - prob not many).

    They are in the best position because they can probably hold on to this particular market for a very long time, whereas Samsung Galaxy users will continue to have many cheaper Android options in the years to come (like Xiaomi etc).

    The low end of the market is pointless. There will hardly be any margins in the hardware and that particular market won't purchase much in terms of apps. It's good for Asian manufacturers who can still thrive on those low margins en masse.

  • Report this Comment On September 13, 2013, at 6:08 PM, secularinvestor wrote:

    I see Samesung's and Google's paid shills are coming here in droves and clicking the "Recommend" button.

    But then they skulk off because they daren't raise their heads above the parapet and make some comments to support their recommendations and this incredibly stupid article. They know that they will be slaughtered if they do make comments

    Until now the 30 plus comments are UNANIMOUS, every one criticising the many factual mistakes and naive, idiotic arguments of this young author.

  • Report this Comment On September 13, 2013, at 6:09 PM, secularinvestor wrote:

    I see Samesung's and Google's paid shills are coming here in droves and clicking the "Recommend" button.

    But then they skulk off because they daren't raise their heads above the parapet and make some comments to support their recommendations and this incredibly stupid article. They know that they will be slaughtered if they do make comments

    Until now the 30 plus comments are UNANIMOUS, every one criticising the many factual mistakes and naive, idiotic arguments of this young author.

  • Report this Comment On September 13, 2013, at 6:10 PM, secularinvestor wrote:

    PS - Sorry for the double posts but there's something wrong with this website

  • Report this Comment On September 13, 2013, at 6:53 PM, thethreestooges wrote:

    The low cost smart phones are losing money or makes very little profit. APPLE could have put the manufacturers of these low price smartphones out of misery by selling cheaper phones in the low cost/no profit segment. And yes, there are so many of them, not making money.

    In the meantime, those same manufacturers are trying to make expansive phones so that they can at least make profit instead of massive loss every quarter.

    Everyone still loves the iPhones design. So, even if only 2% of the Chinese will buy the iPhones 5C or 5S, APPLE already priced those 2% rich people in their model. That's who they are after.

    As far as copying and innovation.

    Samsung just announce their next smart phones will be using 64 bits like APPLE even though Google Andriods has not come up with the OS to handle 64 bits. And if they do, it will be kept to themselves in the Motorola handset.

    HTC also announce it will use fingerprint scanner in their future phones.

    Someone will say they will have dual flashes like APPLE on their next camera soon, just watch the big news being made.

    So far, no cell phones has feature likes APPLE smart phones. They will miss the APPLE Facetime for sure.

    Analysts are making up stories and guesses to justify their job position and to please their managers pretending to be doing something, just something. They will go back and upgrade the stock in 3-4 months. Then the manager will see that the analysts are indeed on top of this and upgrading and downgrading every months.

    Fools!

  • Report this Comment On September 13, 2013, at 6:55 PM, zippero wrote:

    I can't use a Galaxy phone while driving because I can't it use one-handed lest I crash my Porsche. I need both hands on the wheel. The Galaxy is just too big to allow safe driving. In addition, Android OEMs around the world are all unprofitable, including Samsung on its low-to-mid tier phones. 80% of the profit on smartphones comes from the top 20% customers (wealthy people), so Apple is right to stay laser-focused on that segment. Even HTC and Motorola can't squeeze a dime of profit on their high-end phones. Why's everyone asking Apple to go downstream and compete against every profitless downmarket Android OEM in the world? China's producing millions of new millionaires every year more than America or Europe combined and China will soon surpass America as the biggest luxury car market in the world. Apple is right to focus on this segment because it's a growing segment. Let Samsung and Xiaomi fight it out all day long on the low-end for the non-existent profits there.

  • Report this Comment On September 13, 2013, at 7:07 PM, JAVKO wrote:

    And the author prefers to hide in his woodshed before admitting he is on Samsung's payroll!

    Explain why you lie so bluntly.

    How much does Samsung pay for such articles so that we can all get on board.

    Are you truly a Fool? You have proved it.

    Are you aware you can be sued for publishing made-up figures?

    Will you come out and apologize publicly when Apple publishes heir numbers next Q?

    It is understandable, but a pity, that Apple is not in the habit of challenging scumbags with a PR release. I guess being a gentleman in this day and age is a liability. But Trump-like behavior is well rewarded.

  • Report this Comment On September 13, 2013, at 7:14 PM, DanManners wrote:

    Yes an extra inch would have been nice. How many times have I heard that? But Apple marches to their own tune. I personally can't wait for the day that Cook is given his walking papers. The arrogance is unreal.

    No one can really predict what will happen. I really read that Chinese women like larger smartphones because it makes their faces look smaller. Why can't Apple make an additional phone. Samsung did it and so did all the others. Developers will have to modify the software. They will sell more phones and the developers will have a larger installed base.

    It is just unreal that Apple can't make one more phone size. Cook really disappoints. I hope he gets canned and then he will show up on CNBC discussing Apple's new CEO like Sculley does. Sculley was the worst but Cook is giving him a run for his money.

    Believe me. Jobs was nuts. But he was great at making it work. Heck with all those unhappy employees or that he fired someone. He made it happen at Apple twice. He made Pixar and Next. He was great. But Apple needs innovation and when they can't even make an additional large phone, you will never see innovation at Apple. Never. Unless innovation is making a stock go down faster than anyone has ever done.

  • Report this Comment On September 13, 2013, at 7:29 PM, normgarry wrote:

    The ONLY THING holding Apple back is the 4" screen. The iPhone 4 should have had a 4". The iPhone 5 should have had a 4.5". I really think they could have quit with a 4.5 or 4.8", but at least now they understand they have to offer a cheaper model along side a premium model. It makes no sense to just have one when you've got Samsung FLOODING THE MARKET with iCLONES.

    I will NOT upgrade to the iPhone5S because I want a bigger screen.

    #1 AT&T disallows upgrades within 18 months which means I had to pay the full price for iPhone5 when I upgraded from iPhone4S. I'm not doing that again.

    #2 People will want the GOLD version so everyone will know theirs is new. GOLD is the GAWDIEST STUPID COLOR EVER. What do you think I am? King Xerxes?

    #3 A FINGERPRINT SCANNER? You wasted all that R&D on a FINGERPRINT SCANNER? Not more than a few months after we find out the government is hacking us, spying on us and Facebook is a partner of the FBI?

    #4 The carriers rip us off by not allowing free tethering. If we had free tethering, we could use a tablet and our phone and not have to buy massive phones - just to see the screen.

    #5 I WILL NOT leave iOS for an Android phone. If I wanted, I could put all my apps and music, etc on my 32GB iPod and just ditch iPhone for a Galaxy 4. I HATE ANDROID. No deal. iOS is simpler to use, smoother, has better apps and the build quality is superior.

    The smart guy in the room is DEAD. Unless Apple hires me they'll continue a downward spiral as Samsung (And Hyundai, and Kia and LG) continues funneling money from stupid Americans to South Korea in time for the war with the North.

  • Report this Comment On September 13, 2013, at 8:03 PM, applefan1 wrote:

    There is no profit in a low cost smartphone. The low cost smartphones like the Samsung Aspire don't even use a new OS, it uses Gingerbread, so in order to compete, they'd have to sell an older iPhone 3GS and sell it for $150, but there's no money in a product that cheap.

    They are bringing 64 bit sooner than anyone else, which means they'll be completely 64 in two years after they refresh their product line two more times, and then they'll have 90% or more of their users at 64 BIt, when the Android platform will still be trying to figure out 64 bit processing. All Apple really needs to do is come out with a large screen model and start cranking them out as fast as possible and between that and new iPads, which at least one will be 64 bit, they'll do just fine.

    They are building up pent up demand for the larger screen phones,64 bit, etc, which should do well. In addition, they are now selling to Docomo and soon China Mobile and over the next year, they probably add another 100 Million iPhones sold. And then the Android users that don't mind switching to Apple because they have 64 bit and more 64 bit apps, they'll start switching.

    If's too bad this article was written by an idiot.

  • Report this Comment On September 13, 2013, at 8:05 PM, Mentallect wrote:

    Apple is losing the game. Market share matters in the long term, and the MBAs know that, so they are selling Apple shares.

  • Report this Comment On September 13, 2013, at 8:07 PM, applefan1 wrote:

    I would like to see the market share for the following price catagories.

    $650+

    $400 to $650

    $399 and less

    I'll bet the $400 to $650 and the $650+ Apple has about 40% or more market share

    And the $399 and less, Apple has ZERO.

    So, basically if you want Apple product for less then $400, get a nice refurbished or used one, I'm sure you can pick them up as people upgrade. A used iPhone 4s or 5 is probably better than a new anything at less than $400.

  • Report this Comment On September 13, 2013, at 8:16 PM, spakklal wrote:

    Just because you are stupid don't blame Apple for making the best products which consumers like. You will have to wait until september 20th to see the lines waiting for their new iPhones.

    Apple already has a less expensive iPhone which is iPhone 4 & 4S. We have about 200 million iPhones will be traded in and sold to the developing countries to compete with low priced iPhones.

    Apple has majority of the market share in the high end market. Apple's competitors sell their smartphones are very low priced which Apple's old iPhones will compete.

    One year old mercedes is better than buying a low end Volkswagen or low end Hyundai. Similarly old iPhones will compete with the low priced iPhones in developing countries.

  • Report this Comment On September 13, 2013, at 8:17 PM, applefan1 wrote:

    Market share is meaningless in the long term, it's called how big is the market, are you growing with the market and do you make decent margin.

    If Apple is growing with the market and they make decent margin, that's more important than selling a bunch of no margin product to a lot of people.

    Look at IBM, why did they sell off their PC business? NO PROFIT, TOO COMPETITIVE in the low cost PC business.

    Why did Compaq sell off to HP? Same thing.

    Both of those two companies were TOP sellers in the industry, but they couldn't make their margins.

    The same thing is happening to Dell, HP and Lenovo, all three sell tons of product, but their margins SUCK, which is why Dell went private, HP's trying to figure out how to dump their PC business, and Lenovo is trying to see if they can sell IBM's servers, which make a profit.

    Samsung is the only one that makes a profit and a lot of is because they spend almost no money in OS and app development, but they make a lot of the components inside, the rest of the Android mfg aren't making $hit.

    Apple is doing quite well, their biggest two problems is spitting out phones and tablets fast enough when they announce news models and getting a large screen iPhone. Then there is getting more carriers in more countries, will will happen over time.

    With both China Mobile and Docomo, they'll improve their sales tremendously and I'm sure the market share will go up, but market share doesn't pay bills, PROFITS do.

    Why doesn't Mercedes Benz come out with cheaper cars under $20K? They can't put out a quality product that makes decent margin, so they would rather avoid that end of the market.

    That's essentially what Apple is, a Mercedes Benz.

    Apple would rather go after the demographics of people that spend money on hardware, software, content, service contracts, rather than the people that have no money. People that spend $150 or $99 on a smartphone don't spend money, so why do all of that work for $5? It's not worth it, it's just not their thing. They'd rather have higher standards than lower their standards, they already have a ton of business, they can only grow so fast.

    Plus, there is a vibrant secondary market for used iPhones, which is what those people should be buying. It's better to buy a used iPhone that runs the latest OS, than a new Android that doesn't. Ooops. At least an iPhone 4 and 4S run iOS 7 when it comes out any day now.

  • Report this Comment On September 13, 2013, at 8:20 PM, applefan1 wrote:

    The Galaxy Notes don't sell that many. I think they sold around 10 Million Note II's. That's not that many. I think Apple would do better with a 5 inch model that would sell 75 to 100 Million units in a year. But the 5.5 to 6 inch phablets aren't big sellers, they are just too big for MOST people. I've only seen 4 people actually have the guts to use them. I know one person that just had a Note II as a tablet and still uses an iPhone 4 for phone calls. But his Note II died the other day and it's out of warranty. But his iPhone 4 still works just fine.

  • Report this Comment On September 13, 2013, at 8:46 PM, Fiat500S wrote:

    Apple has actually been out-Appled by HTC. The One & One Mini are essentially the same concept brought to market months ahead of the 5c & 5s. Comparing the One mini, a dual core 1 GB memory phone, it's 4.3" screen is ahead of Apples 5c dual core 1 GB 4" rebadge of a plastic iphone5 in terms of ppi specs The you have the One full size vs the new 5s. The One's quad core Snapdragon was already close to doubling up the 5 on what benchmarks I saw out there that were common to both ios and android. As I recall the geekbench scores were 1600 for the iphone5 and more like 2700+ for the HTC One. So if the A7 is twice as fast as the 5c's A6, the 5s should edge out Android's fastest phones. But what is the A7, a quad core ? What clock speed does it run at ? 64 bits is nice feature but real world, is the software capable of producing real world results ?

    Anyway, this back and forth for best smartphone hardware and Qualcomm will have 64 bit cpus shortly too. My One is simply better than anything Apple has released to date and I'm interested to see if they've surpassed it with the A7 cpu. Still 326 ppi is no match for HTC's display. And what difference in speed there is, I'd rather watch videos on the One because the screen is superior.

  • Report this Comment On September 13, 2013, at 9:00 PM, douchechills99 wrote:

    F Motley Fool and their goofy hats and sh#tty advice. How about TINY Motley Fools? Great advice

  • Report this Comment On September 13, 2013, at 9:21 PM, simplesam562 wrote:

    Why are everyone of these comments so angry? Someone wrote an article you disagree with, now everyone with an android phone is cheap? Haha. Love reading the comments that are left on these kind of articles. It only shows how sensitive one can be about their Idevices. IMO I think there are plenty of premium devices out there ( Nokia Lumia, HTC One ETC) So why cant any of you I-only people accept that? Don't get me wrong apple make great products, but some of you make people who use apple products look bad...I mean really because you buy things other than an I-product your cheap..... Get a grip its 2013 people buy what ever the hell they want. Somone people dont need a phone that can play music or have an " 8 megapixel camera with a BIGGER sensor" But by all means I am not trying to discourage you from using an apple product I am simply making a statement.

  • Report this Comment On September 13, 2013, at 9:55 PM, MrIndept9 wrote:

    I'm a big Apple fan but let be serious, Since the Iphone 4s nothing substantial have been added to do the phone and it's getting boring. I'm super disappointed with the 5C and 5S not because of size of screen or price because they are not worth my time or money. You people defending that move remember this is a company that used to have people lining up all night to buy their phone. They have lost their inspiration and i don't think it's because of Steve Job, they just got lazy.

  • Report this Comment On September 13, 2013, at 10:25 PM, JT1951 wrote:

    I agree with your most of your article.......Apple owns the high end smart phone market. With that said bringing out the 5C has minimal value. Why bring out a new iPhone that is basically a iPhone 5 in a plastic shell that sells for a $100 less? They are not aiming at the middle or lower smart phone market with this model. If they are aiming at fashion forwards consumers they could have done the same with bringing out colorful cases for the iPhone 5S and done the same thing. Since the iPhone 4 came out we have heard "Apple is a thing of beauty and not one of those cheap plastic phones'? Now Apple has gone back to the plastic world.

    I know many people that switched to a larger format phone by Samsung or Sony or HTC because they want a larger screen. They prefer the iPhone iOS but they wanted the larger screen more. Apple needs to address this area. People are fine with the higher price for a higher quality phone.... but they want a bigger phone experience. I include myself in this camp. I started with the iPhone 1 in 2007 and am currently with the iPhone 5. I love the phone and its connectivity with my Macbook Air and iPad. I will not be buying a iPhone 5S, the 5 is plenty fast enough. I will not but another iPhone until they produce a larger format phone.

    I think the 5C was a misstep on Apple's part. It won't kill the company, but it will not be pushing the stock price up. They could have produced a plastic iPhone based on the iPhone 4s and sold it worldwide for $349 and taken China and India by storm. Lower margin are unimportant if you make up for it with volume. This would not take away from their high end flagship that is a status symbol for the rich and famous.

    Apple will be fine and make tons of money....... they just won't be growing like they used to. They have to listen to the market and not try to dictate what people want. That is too arrogant for any company.

  • Report this Comment On September 13, 2013, at 10:43 PM, HotGarbage7 wrote:

    The iPhone is a Mercedes and all the others are just Chevy's. The 2 new phones released pretty much puts a stamp on that.

    They did release a cheaper phone and though its not too much cheaper it is cheaper. Maybe I'm not correct on this but doesn't this phone also have some capabilities for China Mobile customers that they didn't have before without unlocking the phone. If I am correct with that then the 750M market is about to be open where it wasn't open before.

    I'll bet that at least 10% of those customers were waiting for that to happen and are now ready and eager to own the iPhone. If I'm wrong on this someone please correct me. Also, can anyone list the other competing phones with their pricing in China as compared to the iPhone. Is there that big a difference?

  • Report this Comment On September 13, 2013, at 11:03 PM, Sookey9090 wrote:

    You also wrote a terrible story.

  • Report this Comment On September 13, 2013, at 11:04 PM, HotGarbage7 wrote:

    And lets talk about Tepper for a minute...Anybody see him live on any of the finance channels?

    He's so full of himself and long winded its almost a train wreck to watch. He thinks he's the smartest guy on the planet. I try to turn it off but I can't. I'm almost embarrassed for him the way the commentators have to guide him through the show and pull things out of him as he belittles them so arrogantly.

    How he continues to get invitations to keep coming back I don't know. They deal with him because they have to. My prediction...To save face he'll reduce his position by such a small percent it won't make a difference. We'll see!!!

  • Report this Comment On September 13, 2013, at 11:57 PM, Charismatron wrote:

    Analyzing the reception of the 5C before it's been hyped, promoted, received foreign keynotes, and been promoted in its intended markets is, well, a Fool's errand.

    Despite everything, Apple promises a premium product and remains a premium brand. While the focus is currently on the new handsets (and how they aren't following the obvious trend of larger screens), this approach overlooks Apple's excellent peripherals: the buying experience, the status, the user experience, and above all, the customer service.

    While Cook's latest keynote may was lacklustre by regular standards, their latest move isn't for the North American gaze: it's for an entirely foreign market--something which this author reveals little to no knowledge or understanding of.

    Yes, Android comes cheap--but you get what you pay for, says everyone. Here in the land of leaks and hyper-expectations we have a completely warped view of Apple. Right now Apple isn't targeting us. And I think at bottom, that's what's got people's knickers in such a tightly wound knot.

    Apple did well with the 5S. It's a great phone with great advancements that users actually care about. The 5C is their bridge into other markets while maintaining their premium brand status.

    Apple may not have lived up to our expectations, but this isn't a misstep on their part. They've done well.

  • Report this Comment On September 14, 2013, at 12:05 AM, vernr75 wrote:

    Great article. Obviously, the Apple worshipers aren't going to grasp the points made in this piece...it all just flies right over their heads because they can't actually see and appreciate the critical trends unfolding in the wider world outside Apple's walled garden ecosystem.

    In a nutshell, here's what's happening. The US market is the birthplace of the modern mobile app market. US app developers have been at the forefront of app generation as a result. iOS adoption in the US has benefited from the fact that US companies have been investing time in creating iOS apps and pushing the use of these apps in commercials. Smartphone buyers in the US take all of this into consideration when buying their smartphones and tablets, and iOS has reaped the rewards in the US as a result.

    However, this is all slowly beginning to change as Android usage grows towards total dominance in more than 200 countries. Because the developing markets are almost 75% of the whole planet's human population (compared to 4.5% that make up the US), and because Android dominates in most Western countries outside the US, non-US developers are going to eventually dominate app development because of the sheer numbers involved. Just as the US-developed iOS apps tend to mostly target and appeal to US citizens, a time will soon arrive when developers and businesses in many other markets will create apps for their local populations. Because iOS is so insignificant in the developing world, Android will be the defacto mobile OS for local app creation. This means that, just like the iOS media effect in the US, folks will be bombarded with local apps that are only available on Android because iOS is too insignificantly used to invest programming resources. This means that, over time, the iOS users in those markets are going to come under increasing pressure to abandon iOS. Apple's total device sales then begins to shrink and suddenly their profits are threatened because they didn't have enough market share to keep iOS app development relevant in so many markets outside the US.

    This is already beginning to take shape in China. Chinese are already showing a clear preference for their own local Android apps as opposed to the ones made by US developers because the locals know precisely what's important to them.

  • Report this Comment On September 14, 2013, at 1:12 AM, BORTRacing wrote:

    Not a mistake in my three teens eyes. We are just switching our service to another carrier. I told them to chose a phone. All three want the new I phone 5s. I have to agree with them the size of some of the new phones are just to friggin big.

  • Report this Comment On September 14, 2013, at 2:47 AM, HotleyGruel wrote:

    I work with and sell cellular phones for all of the different companies.

    I haven't received much buzz about the new iPhones from customers. People are still perfectly okay buying an iPhone 4S for 97 cents on contract, instead of buying an iPhone 5 for $79. The 5S did a enough of a leap for people to go from a 4 or 4S to a 5S.

    The common consumer doesn't care about the first 64 bit processor for a mobile phone. Most Android phones will have that in the Spring. It's just a natural part of the cycle. The fingerprint scanner is cool, but people aren't thrilled about it.

    I hear a lot of people swooning over the GS3 and the GS4. There has been growing buzz about the Moto X. I have been seeing a great increase in customers interested in Windows phones as well.

  • Report this Comment On September 14, 2013, at 7:49 AM, manuripi wrote:

    iphone is death android is the future for the rest of the world

  • Report this Comment On September 14, 2013, at 8:29 AM, Burstedbladder wrote:

    Sell these fones 'unlocked' and for prepaid customers for 99 dollars and what them sell like hotcakes.

    It;s time to end all these cellfone contracts and unlock the people's cellfones. I won't buy one because I do not want a 2 year contract with some greedy company, and they are not available for prepaid.

    Until they make all these fones unlocked so we can use them with any carrier, Apple will continue to dwindle.

  • Report this Comment On September 14, 2013, at 9:06 AM, paulheu wrote:

    "There are 700 million iOS users now, even before the new phones go on sale."

    This comment made earlier shows the Apple reality distortion field in full force. It is plain and simple a false representation of the truth

    Both the 700 million iOS users and the 400 million iPhones sold numbers are both suggestive and not real. Of the 400 million phones sold a vast number (pre 3GS at least) is rotting away in a drawer or destroyed. Also there's plenty of people owning both an iPhone and iPad so that number will come down even more. I'd be surprised if the actual number is even half that..

    The presentation last week was again filled with misrepresentation of numbers and suggestive (but baseless) remarks which were, again, instantly picked up by the blind following who proceed to make a fool of themselves by arguing these numbers and being shot down.

    Facts are iPhone marketshare has been declining for quite a while and only in the US does it take a significant marketshare while in the rest of the world especially Windows Phone is growing quarter over quarter.

  • Report this Comment On September 14, 2013, at 9:29 AM, maggic747 wrote:

    Do larger screens really make a difference? No. To be honest larger screens get pretty damn impossible to hold in one hand.

    That why I never liked Androids. iPhones seem to be built to fit snugly in your hand, whereas Androids sometimes need to hands to even type. Sometimes smaller IS better.

    I don't see how Apple "screwed up" with the iPhone 5S or 5C. History shows that Apple never truly innovated when they put out phones with the subtitle "S". 3GS set the stage for 4; 4S set the stage for 5; and now 5S/5C is setting the stage for 6 next summer.

  • Report this Comment On September 14, 2013, at 9:54 AM, passtheiphone wrote:

    The iphone is not as good as the Samsung 4S and that is just as fact. I've had both, so if you have not, don't just decide you know what you are talking about and listen to the reality.

    The Samsung has a way better screen! When you zoom into areas, you can really tell. The iphone has pixilated areas because the DPI is so much less. While it is not noticeable at normal view, at zoom you can definitely tell.

    The Camera is better. Some may not believe that this makes a difference, but with an iphone I always used a Sony camera. But, with the Samsung I use the camera on the phone the majority of the time because it is such a good camera.

    The apps. The open source of Android OS allows for anything. The apps are mostly free and the greatest thing of all? NO ITUNES. ITunes is the biggest piece of junk ever made. They do so much work to protect copy right infringement that the software is forgotten.

  • Report this Comment On September 14, 2013, at 10:24 AM, fauxscot wrote:

    HTC, on the other hand, made a mistake by hiring too many people. Like Sony, Nokia and MS...

    http://www.theverge.com/2013/9/13/4728670/layoffs-hit-htc-am...

  • Report this Comment On September 14, 2013, at 12:15 PM, kansasguyjc79 wrote:

    Is it me or all these comments being posted by mindless sheep? Apple products to me blow, they are too restrictive. Not as impressive as other phones that charge a lot less then what they are asking for.

    The 5c is selling as much as the iPhone 5 but yet it's plastic with the same specs, I don't think of that as being a cheaper version. Yeah if you want these phones I see a whole bunch getting in line to get contracts but I for one don't like contracts and prefer to buy my phone unlocked with no contract, but I won't pay the price for what Apple is asking for. I would rather spend 500.00 and get the HTC One which is by far much better than the iPhone and does much more.

  • Report this Comment On September 14, 2013, at 1:17 PM, larryw101 wrote:

    Another Apple bashing article by Sam Sam the Apple Bashing Man. You are MF's worst author on here. Thanks for wasting my time with another very biased and worthless article. You haven't a clue about Apple and never will.

    You are fast adding to Motley Fool's declining credibility as useful source for financial information.

  • Report this Comment On September 14, 2013, at 3:50 PM, SonOfSatan wrote:

    Porsche has the 911 and the Boxster. Like Porsche, Apple's has been designing desirable products that are functional and aesthetically pleasing. People love them and they seem to be doing very good as a company.

  • Report this Comment On September 14, 2013, at 6:04 PM, anrbfan wrote:

    When YOU make MORE THAN $21 Billion per MONTH in PROFIT, quarter after quarter, after quarter, THEN you will be qualified to dis Apple. Not until then.

  • Report this Comment On September 17, 2013, at 4:14 AM, wildeweasel wrote:

    Apple fans are a rabid bunch of fanatics that spend their time combing the internet for anything posted against their beloved company. There is no reasoning with them, there is no logic. Every one of the posters here is ranked 0 of 75289 with either 0 stock picks or Apple as their only pick. While I have no doubt that they all own at least one Apple product, I have serious doubts that any of them own any stocks whatsoever.

    In my opinion Apple is not a good stock to buy, not because it will go bankrupt any time soon but because there are far better opportunities out there. I also think there is more down side to Apple, it will not be the first large corporation to take the wrong path. Blackberry anyone?

  • Report this Comment On September 20, 2013, at 4:18 PM, Ironsunset wrote:

    NFL General Managers don't listen to the teams fans and Executives of highly successful, multi-billion dollar multinationals don't listen to the media or in this case, the hedge fund talking heads.

    Apple's success is directly tied to its refusal to waiver on margin to increase market share. To me, any concern with Apple should center around their ability to innovate now that the genius that was Steve Jobs is unfortunately gone. If they continue to innovate, consumers around the world will aspire to own Apple products at a premium price.

  • Report this Comment On September 23, 2013, at 8:53 PM, rf40928 wrote:

    Hey I guess your not so well written or researched article was one of those "Spoke too soon" deals ?

    Someone was smart enough to not tell people as usual ) the day after the sales of a certain product. This all setup for a decrease in stock value so someone could buy stock and make it all back and more.

    Apple sell not 6 million, not 7.. but 9 million phones ( mostly 5s ) .. How much of an increase is that over the iPhone 5? Quite a bit huh?

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