Apple's Profit Margins and Changing Mobile Storage Needs On iOS Devices

Everyone knows that when Apple increase the GB storage on the iPad with a $100 increase does not really mean that Apple's memory cost also double.  If anything, Apple is making more money when an user buys a 32 GB model of the iPad or iPhone over the 16 GB models.  And users are happy to fork over to Apple $100 for the 32 GB, $200 more for the 64 GB model, and $300 more for the 128 GB version.  I did with the iPad Air.

There are a couple of implications for Apple and mobile computing.  Both speaks volumes about where we are headed.

First, Apple's margins should increase for this quarter.  Why is this important to a blog only about state of Apple mobile?  It says that Apple is skating to where the puck is going to be and not where its at now.  So far, we don't see any competing devices at the 128 GB end and only a few mobile devices with 64 GB.  The Surface tablets have about the same amount of storage in name as the iPads but because of the bloated state of the Windows OS, much of that storage is unable to the end users.

Second, people are willing to pay more for value.  And users like myself like to be able to carry more media and apps with us when possible.  Heck, I would have bought a 256 GB iPad Air had there been one.

If you check around, you'll find that people are buying into the higher storage iPads.  Particularly evident is lack of 64 and 128 GB models available on a consistent basis for sale at the Apple stores and in other retailers.

And consider the whole mobile plan that Apple is cooking up, including the preemptive move to a 64-bit chip architecture with the A7 chip, it means iOS devices will be able to do more and faster with each upgrade.  That would also mean that users will require more storage for media and apps.

Apple Bought PrimeSense, Tech Behind Microsoft's Kinect - Now, What?

Source:  PrimeSense, Reuters.

Today, the Web exploded with news that Apple bought PrimeSense, the company that develops 3D sensing technology for systems including mobile.  And it happens to be the company behind Microsoft's Xbox Kinect.

So, what happens now and when will see something come to fruition from this buyout?

Look beyond just the Xbox at who PrimeSense's partners are and you see why Apple showed interest in the company and decide to bring it into the fold.

• Microsoft, again. 
• Robotic companies like iRobot.  
• 3D scanners that could become a bigger deal with 3D printing.  
• Asus with computers.
• Real world physical activities.

Only Apple knows what it will do with this new buy.  It's unlikely Apple will just introduce a Kinect clone.  Apple does make and released products for the sake of doing it.  Apple has found an unique and identifiable use for PS technology, whether in its current line of products or new ones, that can benefit its customers.  

It's likely going to be used in something Apple has in the works for some time.  The integration of 3D sensing technology from PrimeSense could take some more doing.  Apple probably has already gone pretty far with this.  It's likely we can see something new in 2014 with this.  I'm possibly being optimistic but, hey, it's Apple we're talking about here.

PS already has 3D sensors small enough to fit inside a mobile device like a phone or tablet.

iPhone With Curved Screen: How Much Sense Does It Make?

Source:  On Android.

First there was the Nexus S.  Now the LG Flex. Samsung also has its own device but there isn't anything new about it - if you want to know, it's called the Round.  You can head over to The Verge for more info.  Between the two, I think the Flex's top-bottom curve makes more sense than the Round's side-to-side curvature.

However, this is talk that Apple is interested in developing its own curved-screen iPhone.  It's a rumor and while I don't like to dish rumors here, for the sake of speculation, we will here.

Let's suppose the rumors about Apple releasing a curved iPhone is true, it'll be interesting to see what real world advantages of curved screens has over traditional screens that Apple can develop. What kind of real world applications a curved iPhone might have over competing devices from the Android world.

I've mentioned that reduced glare might be a possible advantage but there would need to be more for Apple to move on it.  And Apple never released a product with new technology for the sake of doing it.

Word is that special sensors could be in the works.  If true, that would make the rumors, and that's all they are, rumors, make more sense.

Today on a Sunday, the mobile world exploded that Apple bought a 3D sensor company.  Initial reports are that the company, PrimeSense, focused on 3D sensing for the living room as well as mobile (Reuters).

For speculation sake, let's sake Apple needs something from PrimeSense for more than the living room.  Say it has to do with the curved screen design.  Wouldn't that be spectacular?

Must Read: Paid Firms To Stack Against Apple May Have Short Term Effect But Long Term Could Still Go Apple's Way

Here's a must read Appleinsider post regarding just how analytical firms that sell themselves to the highest bidders to stack statistics their way.  What's interesting is a quote within one firm's, Strategy Analytics, client page that one of its missions is to "influencing consumer behavior and buying preferences".

Time and time again, we've noticed that firms refuse to recognize Apple's growing dominance in the tablet market with the iPad and the influence its had on the PC market.  Time and time again, firms refuse to acknowledge the change in the mobile computing market in a shift away from PC towards more lighter and nimbler tablets, at the time, was only the iPad that sold in any number.

The question is does Apple mobile fans care?  Probably not.  Only a subset of this group really care about these reports or keep scores.  For the general mobile market, those who are more educated about the differences between tablets, iPad versus others, know what they want and whether they want to be a part of Apple's iTunes, iOS, and mobile ecosystem.  A wider portion of the market care nothing at all about iTunes or Play or anyone else.  For them, it's about the price.

The point though is that Apple owns a large segment of the mobile market, both PC and tablet, of those willing to invest in the mobile life.  This is part of the market are willing to spend more on their devices and not only download apps but buy apps as well.  This is why though Google's Android has overtaken Apple in terms of downloads but Apple is still king when it comes to app store monetization.  This is why Apple likes to brag about how much Apple has paid out to developers.

And while the public may not know or care in general, constantly hearing how Mac sales are slowing or that Android tablet shipments have outran the iPad could definitely have an adverse influence on Apple.

It's possible that the tide could turn in market and profit share against Apple.  But I think any setback is temporary.  Just like in the smartphone market, the iPhone has had to deal with $100 or $200 Android devices (and now, cheap Windows Phones too) for years since its introduction in 2007.  But in the US market now, sales of iPhone is beginning to turn around and in about a year, could overtake Android.

Note that Appleinsider is a rumor site and very pro-Apple.  I have found that while it is pro-Apple, it isn't in the realm of Fox News if you get what I mean.  It's very insightful and doesn't go places or twist facts too much to make its argument.  Still, you have to decide for yourself about this particular post.

Social: Power of A People, Social Media, And Kindness Helps Kid Battling Leukemia Save Gotham

Source:  Make A Wish Foundation, Business Insider, Politico.

Great news, folks.  Gotham City is once again safe.  Thanks to not Batman (he had a small part in it).  Not one of the various Robins.  Not Nightwing.  Nope, not Superman either.  Or the JLA.  It's Batkid!!!

That's right!  Thanks to Make A Wish Foundation, more than 10K fellow Americans, and thousands if not millions of us on social media cheering him on, Batkid, aka Miles, roamed through Gotham (San Francisco) to save its citizens from evildoers.

What's more, many are cheering him on via social media like Twitter.  Tweets from famous folks, politicans (some of them I like Batkid to deal with, and even the President of the United States.

With little brother aka Robin. Choking back tears! #sfbatkid pic.twitter.com/apIpn9OUYn
— patricia wilson (@pilarwish) November 15, 2013

This has got to be one of the best stories of 2013.  It's just so heart-warming to see what Americans can do even for a 5-year old when we work together.

And Miles, continue the good fight.  We're all pulling and with you!

Also, never once did the Make A Wish Foundation expect their website to crash.  And only the Batkid could do that!

Cloud/Product Rollout: Beta Or Staggarded Roll Out Versus US Government

It's safe to say that the federal government's rollout of the health insurance exchange has not gone well.  In fact, it's pretty dismal.  At the same time, they're hardly to be blamed for this.  Remember all those cloud services that Apple tried to unveil that didn't work? MobileMe, the early days of iCloud?

I'm sure you can think of a few other examples of how things didn't work out well for private companies. And the health exchange is probably many times more complex.  This is why I don't get why Washington thought it could make it work from day one.

Where was the beta testing with real people participation?  Google's Gmail has been in beta for years and I'm sure there are a few other apps that are still in beta?

The health insurance exchange debacle is a very valuable lesson for government officials and entrepreneurs.  This reminds me of Google+ unveiling.  You needed an invitation to sign up.  And it was done over time probably to give Google time to scale properly.

In fact, a few mobile apps that I've signed up for had this system where you can sign up for service you had to wait until the app developers had scaled enough to accommodate more users.  One app in particular was Mailbox from Orchestra.  It took about a week between me signing up for service and when I could actually use the app but it was worth it because it worked seamlessly.

President Obama spoke today about the frustration regarding the ACA roll out.  I think he should have added that the exchange was a beta process and it could be a while before it's up and running properly.  Word is that Google engineers have been tasked to help out.  I think that helps but should have done that from day one.

Zune I Get But Windows Phone 7: This Blows. Microsoft Ends Support for Video

Source: The Verge.

If you bought Xbox video, and you use Windows Phone 7 or Zune, you're going to be able to continue using it until Feb of 2014.  After that, nada.

Microsoft gave some crap about how they improved on the video and offerings.  Translation:  if you wanna keep using Xbox content, get a new Windows Phone device, preferrably the Lumia which Microsoft effectively own.

Zune?  I get that.  But Windows Phone 7.  Not so much.  It's still pretty new.  It's the OS that has been delayed over and over until Microsoft managed to ship it against some already entrenched smartphone heavyweights.  It, along with Blackberry, had owned the mobile market.  One theory I've got on why Microsoft is chucking WP7 now.  There were not many takers to begin with.  Kinda like Zune I guess.