Apparently Apple users hate our freedom
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This was an interesting article I found on Apple iTune's ability to sync to other phones.
Interestingly enough, this article says 67% of those polled feel Apple should have the right to only sync iTune to Apple products. This brings up a great debate around whether new devices like the Palm Pre, should have the ability to use Apple iTune technology on it's device or not?
I think back to my Economic Undergraduate classes that discussed the invention of the QWERTY Keyboard and feel iTune's has positioned itself in a similar way. Where the keyboard is a must with Computers, iTunes is evolving into a position of being a must-have with most mobile and computer devices. Our culture has embraced iTunes and the simple idea of downloading songs they want, rather than spending ten plus dollars on a CD that has songs you will never listen to a second time.
Anyways, I'm sure over time this issue will fizzle and Apple will continue to prosper. Look for future devices to incorporate iTunes into their gadgets.
Showing posts with label Apple. Show all posts
Showing posts with label Apple. Show all posts
Friday, June 19, 2009
Thursday, June 18, 2009
Washington to Question Wireless Companies
Lawmakers have recently been questioning major telecommunication companies such as AT&T (NYSE: T), Verizon (NYSE: VZ), T-Mobile (NYSE: DT), and Sprint (NYSE: S) about two separate issues: Text Messaging Costs and Exclusive Handset Deals.
Issue 1: Text Messaging Costs
CNET reported that since 2005, the cost of text messaging has increased 100 percent from 10 cents to 20 cents for all major Wireless Service Providers.
The reason to increase the rate to text message is unjustified. I would think over time as these Big 4 Wireless Service Providers acquire regional players, the price of text messaging would decrease. We are already seeing the price of unlimited Text Packages decrease, but why not the prices for those without a Text Package? I believe this is because they are trapping consumers into thinking they are getting more for less. By paying $20 for example, consumer do not feel like they have to worry about individual text messages adding up, but over time consumers will text less and the marginal benefit is passed onto these Big 4 Companies. Hence, that is why even though many of these Big 4 Companies stock prices are down from the Market highs in 2007, they are great to have in your Portfolio because they typically yield a comfy 6%+ dividend. They always find a way to make an extra dollar!!
Issue 2: Exclusive Handset Deals
Many Wireless Service Providers have experienced exclusive handset agreements as the Telecommunication industry has evolved. Two recent examples are the Apple iPhone being sold at AT&T, and the Palm Pre being sold at Sprint Nextel.
As consumers often complain about not being able to purchase the gadget of choice because of its offering only on specific networks, Congress has taken notice. John Kerry, Massachusetts Senator, sent a letter to FCC Chairman, Michael Copps on June 17th, 2008, which asked the FCC to examine whether handset exclusivity hampers consumer choice and market competition.
Consumers, especially those whom are tech savvy, oftentimes want the latest gadget. This usually causes them to break a contract, purchase a new phone and ink a new service agreement. Is this good for the marketplace? The cellphone companies generally prefer to sign exclusive agreements with manufacturers to insure the best position in the marketplace for the latest-&-greatest device. Hence, they like consumer competition, but do lose out when their company is not on the right side of the exclusive agreement. For example, AT&T was on the right side of the agreement to sell the Apple's iPhone in AT&T stores, but competitors like Verizon, Sprint, and T-Mobile were not.
The answer is still unknown if Exclusive Handset Deals are the best thing for both consumer choice and market competition. I would argue it only gives the company with the exclusivity rights the edge, and leaves both the competition and consumer out to dry. The competition faces higher churn rates and misses out on sound customer acquisition since Manufacturers are signing these agreements. The customer is the victim too. They are put in a dilemma of constantly switching Wireless Service Providers because the gadget of choice is not offered at their current Wireless Service Provider.
All in all, if one examines this topic from the Consumer and Firm standpoint, both are victims of fierce market competition.
Issue 1: Text Messaging Costs
CNET reported that since 2005, the cost of text messaging has increased 100 percent from 10 cents to 20 cents for all major Wireless Service Providers.
The reason to increase the rate to text message is unjustified. I would think over time as these Big 4 Wireless Service Providers acquire regional players, the price of text messaging would decrease. We are already seeing the price of unlimited Text Packages decrease, but why not the prices for those without a Text Package? I believe this is because they are trapping consumers into thinking they are getting more for less. By paying $20 for example, consumer do not feel like they have to worry about individual text messages adding up, but over time consumers will text less and the marginal benefit is passed onto these Big 4 Companies. Hence, that is why even though many of these Big 4 Companies stock prices are down from the Market highs in 2007, they are great to have in your Portfolio because they typically yield a comfy 6%+ dividend. They always find a way to make an extra dollar!!
Issue 2: Exclusive Handset Deals
Many Wireless Service Providers have experienced exclusive handset agreements as the Telecommunication industry has evolved. Two recent examples are the Apple iPhone being sold at AT&T, and the Palm Pre being sold at Sprint Nextel.
As consumers often complain about not being able to purchase the gadget of choice because of its offering only on specific networks, Congress has taken notice. John Kerry, Massachusetts Senator, sent a letter to FCC Chairman, Michael Copps on June 17th, 2008, which asked the FCC to examine whether handset exclusivity hampers consumer choice and market competition.
Consumers, especially those whom are tech savvy, oftentimes want the latest gadget. This usually causes them to break a contract, purchase a new phone and ink a new service agreement. Is this good for the marketplace? The cellphone companies generally prefer to sign exclusive agreements with manufacturers to insure the best position in the marketplace for the latest-&-greatest device. Hence, they like consumer competition, but do lose out when their company is not on the right side of the exclusive agreement. For example, AT&T was on the right side of the agreement to sell the Apple's iPhone in AT&T stores, but competitors like Verizon, Sprint, and T-Mobile were not.The answer is still unknown if Exclusive Handset Deals are the best thing for both consumer choice and market competition. I would argue it only gives the company with the exclusivity rights the edge, and leaves both the competition and consumer out to dry. The competition faces higher churn rates and misses out on sound customer acquisition since Manufacturers are signing these agreements. The customer is the victim too. They are put in a dilemma of constantly switching Wireless Service Providers because the gadget of choice is not offered at their current Wireless Service Provider.
All in all, if one examines this topic from the Consumer and Firm standpoint, both are victims of fierce market competition.
Wednesday, June 17, 2009
Is Palm a takeover candidate now?
Is Palm a takeover candidate now? - MarketWatch
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I came across this article when reviewing some Technology stocks today. As Palm sees its value soar due to the release of the Pre, it may be suiting for a buy out by the end of the year. Palm has been a laggard behind Blackberry and Apple in the last few years, but recently is emerging again as a force. This article speculates that Dell could be a buyer, which I would not rule out since Dell has lots of Cash sitting on the sideline. At the beginning of 2009, Dell held about $8B in Cash equivalent.
Could this speculation become a reality sooner than we think? I would argue that the current market price of Palm is a fair value, and I agree with Dan Gallagher of MarketWatch, that if a buyer comes along, look for them to purchase Palm at around $20 a share.
Posted using ShareThis
I came across this article when reviewing some Technology stocks today. As Palm sees its value soar due to the release of the Pre, it may be suiting for a buy out by the end of the year. Palm has been a laggard behind Blackberry and Apple in the last few years, but recently is emerging again as a force. This article speculates that Dell could be a buyer, which I would not rule out since Dell has lots of Cash sitting on the sideline. At the beginning of 2009, Dell held about $8B in Cash equivalent.
Could this speculation become a reality sooner than we think? I would argue that the current market price of Palm is a fair value, and I agree with Dan Gallagher of MarketWatch, that if a buyer comes along, look for them to purchase Palm at around $20 a share.
Tuesday, June 9, 2009
Jim Cramer reaffirms' Apple's recent Success
Jim Cramer, who most know from the show 'Mad Money' reaffirmed the great year Apple is having in his article, entitled "Cramer's 'Mad Money' Follow-Up:Apple" today.
He discussed the common fact that the markets have rebounded since mid-March, and that Apple has been a bright spot among the Technology Sector. As I stated in my previous blog discussing Steve Jobs, Apple is up nearly 70%. Apple should continue to sustain growth with the recent price cut on the iPhone 3G to $99, and the new release of the iPhone 3GS which will sell for $199.
Nonetheless, it is nice to see Jim Cramer is on the same page regarding Apple's stock.
He discussed the common fact that the markets have rebounded since mid-March, and that Apple has been a bright spot among the Technology Sector. As I stated in my previous blog discussing Steve Jobs, Apple is up nearly 70%. Apple should continue to sustain growth with the recent price cut on the iPhone 3G to $99, and the new release of the iPhone 3GS which will sell for $199.
Nonetheless, it is nice to see Jim Cramer is on the same page regarding Apple's stock.
Will Steve Jobs return boost Apple's Stock?
As most whom follow the markets know, Technology has been a bright spot this year.
Many whom saw their 401k shrink by as much as 40% as the economy plummeted in late 2008, know very well, Apple has been a leader of the pack. Some have jokingly teased if Apple's recent run-up in it's stock price has been due to Steve Jobs taking a leave of absence. Like many, I believe this CEO left the company in a good position and put the right management in place, which is why Apple's Stock price has ticked up as much as 74% between 3/9 and 6/1 (See Graph). Many Analysts have 4 and 5 star ratings on the stock, and show ratings of "Buy". See today's Apple Yahoo Finance ratings.
"Will this stock continue to get stronger?"
Nothing is ever certain, but some are predicting Apple could reach $200/share. This may seem a rather bold bet? Nevertheless, with the markets most likely due for another correction and Steve Jobs returning to the reign soon, this may be a good stock play.
Palm Pre Specs
Per the Manufacturer, below are a list of Specs for the new Palm Pre which hit stores on May 19th.
It is currently exclusively only sold at Sprint for $199 after rebate, but is rumored to be coming to Verizon Wireless in January 2009. It must be a hot phone when Sprint sold out of them in the opening weekend, and if Apple is cutting the price of their current iPhone 3G to $99, which was announced yesterday. Nonetheless, the debate will live on through the end of 2009 if whether the new Palm phone is a lame duct attempt at being an "iPhone killer."
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It is currently exclusively only sold at Sprint for $199 after rebate, but is rumored to be coming to Verizon Wireless in January 2009. It must be a hot phone when Sprint sold out of them in the opening weekend, and if Apple is cutting the price of their current iPhone 3G to $99, which was announced yesterday. Nonetheless, the debate will live on through the end of 2009 if whether the new Palm phone is a lame duct attempt at being an "iPhone killer."
Operating system
- Palm® webOS™
Network specs|
- 3G EVDO Rev A
Display
- 3.1-inch touch screen
- 24-bit color
- 320×480 resolution
- HVGA display
Keyboard
- Physical QWERTY keyboard
- Microsoft Outlook® email with Microsoft® Direct Push Technology
- POP3/IMAP (Yahoo, Gmail, AOL, etc)
Messaging
- Integrated IM, SMS, and MMS
GPS
- Built-in GPS
Digital camera
- 3 megapixel camera
- LED flash
- extended depth of field
Sensors
- Ambient light
- accelerometer
- proximity
Media formats supported
- Audio Formats: MP3, AAC, AAC+, AMR, QCELP, WAV
- Video Formats: MPEG-4, H.263, H.264
- Image Formats: GIF, Animated GIF, JPEG, PNG, BMP
Wireless connectivity
- Wi-Fi 802.11b/g with WPA, WPA2, 801.1x authentication
- Bluetooth® 2.1 + EDR with A2DP stereo Bluetooth support
Memory
- 8GB of user storage (~7.4GB user available)
- USB mass storage support
Phone as laptop modem
- Bluetooth tethering
Connector
- MicroUSB connector with USB 2.0 Hi-Speed
Headphone jack
- 3.5mm stereo
Palm® Touchstone™
charging dock
- Compatible
Dimensions
- Width: 59.5mm (2.3 inches)
- Height: 100.5mm (3.9 inches)
- Thickness: 16.95mm (0.67 inches)
- Weight: 135 grams (4.76 ounces)
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