3GS Kicking Butt At AT&T - It Means Opportunities for Apple

People want the iPhone.  It's why Apple was only recently able to keep up with demand.  And as Apple move away from exclusive deals in more countries and expand carriers, it shows that even the 11 months old iPhone 4 is still able to keep up with the newer (not necessarily better) competitors on the market.  Ask AT&T about Atrix sales and ask T-Mobile with its slew of new Android devices but still managed to lose close to half a million subscribers.  

It's not a surprise that we learn the two-year old iPhone 3GS is managing to even outsell the top Android devices. People want the iPhone.  It's a clean mobile experience that is a joy to use.  Still, outside of AT&T, the 3GS continues to elude users on Verizon, Sprint, and T-Mobile, the other three top US carriers.

This provides Apple with an interesting opportunity.  Tim Cook has stated in the past that Apple does not plan on giving up any segment of the market to its competitors.  Nor do I think it should.  It makes very little sense for Apple to give up profit margins to do it either.  It's anyone's guess how Apple plan on attack the lower-end smartphone market and get users to go with its mobile devices.  

I don't buy the argument that Apple will make a cheaper iPhone.  Any Wall Street analyst who suggests it should be fired on the spot.  Just as Apple has said on the past that it did not know how to make a $500 computer that wasn't a piece of crap, Apple isn't going to come out with a $99 or $199 iPhone that is also a piece of crap. 

I reckon that Apple will change the financial model a bit to make sure that it can earn back any money it sacrifices if it should decide to sell iPhones at a lower price.  Perhaps, it might look to the iTunes ecosystem to help pad margins. That's just my guess.

Rest assured that Apple will address the low-end smartphone market.  And the 3GS or a variant of it could be the key.

More at Loop Insight.

iPad Sneaks Into Top Floor Of Corporations

I don't work for a company that has a top floor.  We only have one floor but my boss has an iPad.  And more and more, he is realizing the potential of having a light 10-hour mobile device with wireless connection that allows him to work and play no matter where he is in the world.  You could do that with a laptop but when you're the CEO and president of a company, having to start up a laptop with a 3-4 hour battery life just doesn't have the same appeal and ease of use as what the iPad brings to the table.

And thought I've already got my own iPad, he is also looking to spread the tablet love to the rest of the company.  We're a small company and that's just us.  Companies many times bigger are virtually doing the same thing.  Hundreds of iPads are being adopted by one company while another with thousands are being deployed.  

Whether it's iPads, Xoom or other Android devices, or RIM's Playbook, it's an opportunity for everyone.  And hardware aside, apps optimized for tablets are also changing the way we work.  

The main thing is that productivity will benefit greatly when information are just a few touches and swipes away.  

While our company doesn't have apps that we develop in house for easy access to our data, what apps are available are working for us.  I'll getting into another post about what apps my boss uses to help him with his work.  The bottom line is that for someone who isn't all that into computers, he sure loves his iPad 2.

More at Information Week.

In the Unlikely Event That Apple Switches Away From Intel in Mac, This Is How It Can Happen

There's been a rumor going around that Apple will make the switch from Intel's chips in Macbooks and switch over to the ARM architecture by around 2013.  There are a lot of posts on the Web about it.  Some think it'll happen and some think it'll never happen.  I'm in the camp that says "never say never".  However, you have to wonder why would Apple do such a thing?

Here begins my speculation and let me say that in no way do I think this will happen.  Arstechnica laid out a good argument that while Apple can make the switch, there is no good reason why it would.  So, in what case would Apple use ARM chips over Intel?  

How about this?  The Macbook.  The low-end Macbook.  Apple can begin to use the ARM chip in the Macbook.  One of the selling points about the Intel-based Macs is that they are Windows compatible.  It's less likely that Macbook buyers is likely to use Bootcamp and switch over to Windows.  And let's not forget that Microsoft is developing a version of Windows for the ARM chips for use in tablets to compete with the iPad.  So, it is possible that apps can allow an ARM-based Macbook to boot into Windows still.

And by introducing ARM chips in the Macbooks, Apple can give the market time to slowly adjust itself to the idea that "Intel Inside" is no longer necessary.

iOS Making More Money For EA…than DS And PSP Combined?!

According to EA, it's mobile revenue is $70 million while DS and PSP pulled in $28 million and $16 million respectively.  Not bad right?

It's hard to say since the margins can vary.  EA probably makes more from DS and PSP sales considering how much more expensive those games are but it more than makes up for the smaller margins on mobile sales through volume.  All in all, not a bad quarter.

Now consider this.  Apple's popular iOS devices, iPhone, iPad, and iPod touch, dominates the app store revenue with about 80% of the market.  Taking a bit of a leap and extending that to EA's mobile revenue, Apple's ecosystem could be helping EA generate $56 million of total mobile sales.

That means the iOS platform is taking in more sales than DS and Sony combined!  

Of course, this is just some fuzzy math I'm throwing out there but I am pretty sure I am not that far off.  Without knowing the margin, we won't know if developing and selling games for the iOS is more profitable than for dedicated gaming devices.  Still, with the explosive growth that mobile is experiencing, not only will mobile revenue dwarf handheld gaming revenue, but mobile profit will eclipse those generated by DS/PSP many times over.

More at TUAW.

Apple Only Managed To Muster 82% Share of Tablet Market

With the huge iPad 2 launch that began in March and we just finished up April, Apple "only" managed to muster up 82% of market share.

Okay, not being sarcastic or nothing like that.  I thought Apple would have wiped the floor with everyone else.  I think there might be two reasons for this.  

First, despite what folks think, Apple does face meaningful competition from the rest of the tablet market as a whole.  You add in all those Android devices, Xoom, Galaxy, and other minor players, you can probably come up with 10-15% of the tablet market.  Then on top of that, you've got a few Windows versions that are just basically laptops without the keyboards.

Second, Apple was still running into supply issues.  I've had to wait 10 days for our latest 3G iPad.  

So, 82%?  Pretty good but I think Apple could have done better if supply issues did not come into play.  Love to see what May looks like and when Playbook from RIM has had more time on the market  

More at MacDailyNews.

White iPhone Or Not At the End of May

I think when my T-Mobile contract ends at the end of May, I'm gonna fight really really hard not to get the white iPhone from Verizon. It's gonna be hard. In trying to help my retired dad and his wife save money, I've decided to take on their mobile bill. However, I am forced to go with Verizon because both ATT and T-Mobile have horrible coverage where they live.

Still, I've got a couple of weeks left. I might even be able to hang through June. I figure I've got a month until we hear something more definitive on what Apple has planned. It is beginning to look more and more like there will not be an iPhone until later in the summer or early fall.

Now, there are smart folks over at Apple running the company. I'm not talking just about Steve Jobs and the top echelon of the executive team but the folks who are forecasting sales. Obviously, Apple is continue to do well with the iPhone 4 and it doesn't appear they will be in a hurry to rush out the next iPhone.

And I would have to agree. It's likely that Apple has found a firmer footing with Verizon in the mix in the US market.

Three Quarter of Docs Owns An Apple Device

According to a healthcare survey, 75% of physicians owns an iOS device, iPhone, iPad, or even an iPod.  

30% Of docs own an iPad.  I reckon this number will be higher soon enough.

Brilliant and amazing.  In the past, a patient would look at the doctor's diploma to rate his or her qualification.  Pretty soon, we're gonna want to know if they use an iOS device.  After all, how can anyone trust the man or woman with his or her welfare if they don't use an iPhone or iPad?

More at MacDailyNews