I’m a bit skeptical over Salvatore’s article, here (well… below).
as most of you know I’ve been sporting Android devices myself of late (Nexus 7 over my iPad, the Nexus 4, and now the HTC One). Its fun. but, I remain a serious Apple shareholder. I’m thinking long-term.
I’ve pondered Salvatore’s article and found myself asking a fundamental question:
“If he is correct, then why is it every kid in North American schools from College down to the 3rd grade want iPhones? Most of their parents as well.”
“Salvatore “Sam” is a member of The Motley Fool Blog Network – entries represent the personal opinion of the blogger and are not formally edited. Although Apple’s iPhone 5 sold more impressively than the Gal … Robert is a…”
that’s it. just that. but, Sal’s position is weak without much relative research. for example he fails to mention that the Samsung Galaxy S4 is subsidized for carriers much differently than Apple’s practice. for example, at AT&T you can pick up the Samsung device for $199. this is why Apple’s margins are better and another reason the stock is underpriced.
The S4 figures in context
“Although Apple’s iPhone 5 sold more impressively than the Galaxy S4, the smartphone market appears to be rapidly moving against Apple. To be completely fair, the iPhone 5 did sell better than Samsung’s S4. There’s no question about that. Apple sold 5 million of its latest iPhone in just the first weekend. AppleInsider has pointed out the apparent media bias when it comes to coverage of Apple: many articles characterized the iPhone 5’s launch as a failure, while Samsung’s S4 has received praise.”
this means Samsung is selling under margin. not a great long-term strategy where you get your customers accustomed to cheap prices. comparatively, Apple has us willing to pay a lot of money for great products.
peace to my Brothers and Sisters.
brian patrick cork