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Apple is next US tech company to be destroyed by commoditisation


               
2015 Sep 3, 10:33pm   5,997 views  16 comments

by Heraclitusstudent   follow (8)  

http://www.bloomberg.com/news/articles/2015-09-03/zte-s-cheap-phones-quietly-winning-the-u-s-
A smart phone is an assemblage of commodity components and really cost about $60.

No amount of marketing will allow a company to sell an item for $600 when something similar is offered for $60.

In 5-10 years Apple may well look like HP now.

Comments 1 - 16 of 16        Search these comments

1   NoYes   2015 Sep 3, 11:01pm  

Apple's goin down dude the bigger they are...the harder they fall

2   lostand confused   2015 Sep 4, 5:38am  

Well, they have like 200 billion in cash or some such? But I think iphones is 70% of their sales ? So yeah they can't keep on for ever and Steve Jobs ain't there to come back and rescue them.

3   zzyzzx   2015 Sep 4, 7:40am  

Some of the Samsung phones cost just as much and people still buy them.

4   Heraclitusstudent   2015 Sep 4, 10:22am  

I think so far smart were fairly expensive items, and the real cost was masked by telecom contracts subsidies.
Now costs will be in full sight as subsidies go away and there will be some ultra cheap alternatives.
Apple may be able to charge twice the price of 'cheap' phones, but not 10 times.

5   Entitlemented   2015 Sep 4, 10:27am  

Not if the iCrainium works out.

6   HydroCabron   2015 Sep 4, 10:31am  

Heraclitusstudent says

Apple may be able to charge twice the price of 'cheap' phones, but not 10 times.

Seems as if they have been able to survive not on great UI and hardware integration, but at being better at it than their nearly-retarded competitors.

The Retina-resolution displays, slightly better touchscreen design than the other smartphone makers, and cleaner layouts have allowed them to claim almost-mystical properties for their products. It's all bullshit, but hey: at the time of the Retina introduction, Microsoft simply believed that customers had no need of, or desire for, a 2880x1600 display. Guess how well the early Surface tablets did.

I don't like the iPhone much, but it's a good product for a lot of people with more money than sense. The MacBook Pro is a pleasure to use, mostly because Apple did not treat "nice fonts" and "readable icons" as mere unnecessary extras. The Apple stores sure do remind me of Scientology, though.

7   Rew   2015 Sep 4, 10:33am  

You don't just buy the phone, you buy the ecosystem and integration. Apple will continue to be able to hold huge revenue for phones sales, provided its ecosystem, services, and appeal remain.

8   B.A.C.A.H.   2015 Sep 4, 2:19pm  

"Ecosystem".
Used to be "Infrastructure".
I guess that's so last decade.
So "ecosystem" is the new "disruptive" Cool and Hip term (along with the acronym "S.T.E.M.").

9   anonymous   2015 Sep 4, 2:30pm  

i agree with the theory behind the headwinds, but in practice apple is also becoming a defense contractor.

they are desperately trying to get away from the iPhone reliance. the Watch is merely on such avenue.

10   Heraclitusstudent   2015 Sep 4, 2:31pm  

Rew says

You don't just buy the phone, you buy the ecosystem and integration.

Like what? The watch? (seriously?) The macbook? (do the same with a PC)
Is integration the same as a tonsure?

11   Heraclitusstudent   2015 Sep 4, 2:39pm  

landtof says

they are desperately trying to get away from the iPhone reliance.

Unfortunately iphone+ipad is like 80% of $75 billions revenues in Q1.
You don't replace that by starting a watch business from scratch, or TV shows, or whatever. There just aren't that many juicy opportunities like that.

12   anonymous   2015 Sep 4, 4:37pm  

yeah, i get it.

it's just that i believe they have something in the works. even the pentagon is paying them to do something with it:

http://www.cnet.com/news/us-defense-department-turns-to-apple-lockheed-martin-and-others-for-wearable-tech/

watch will turn into more wearable gear:

though i think apple is in general, lacking the innovation they once had a decade ago.

13   lostand confused   2015 Sep 4, 4:41pm  

The only reason I have an iphone and an ipad is that they gave it to me at work. I see no difference between it and any other smartphone-but that is just me. I just don't understand the cool factor.

14   zzyzzx   2015 Sep 4, 4:54pm  

lostand confused says

The only reason I have an iphone and an ipad is that they gave it to me at work. I see no difference between it and any other smartphone-but that is just me. I just don't understand the cool factor.

Neither do it, but like i keep on saying, those Samsung phones are also pretty fucking expensive and people keeping buying those too.

15   HEY YOU   2015 Sep 4, 9:29pm  

lostand confused says:"I just don't understand the cool factor."

I think it's the gullible factor.

16   epitaph   2015 Sep 6, 5:59am  

People buy Apple computers because of the software not the hardware.

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