The Orange View (on hiatus) Because Apple is great but it isn't perfect


How thick are the analysts at Gartner?

Gartner predicts that Apple’s iOS will remain the second biggest platform worldwide through 2014 despite its share deceasing slightly after 2011. This reflects Gartner’s underlying assumption that Apple will be interested in maintaining margins rather than pursuing market share by changing its pricing strategy. This will continue to limit adoption in emerging regions.
-Gartner press release, April 7, 2011

Cook said the company is planning “clever things” to address the prepaid market, and that Apple did not want its products to be “just for the rich,” and that the company is “not ceding any market.”
Cook noted that the company has spent “huge energy” in China, a “classic prepaid market.”
-Apple's Tim Cook quoted by Bernstein Research analyst Toni Sacconaghi, February 28, 2011

Posted by Aaron Pressman

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  1. I don’t know how Gartner stays in business. They are almost funny, they are so bad. The wise investor could do quite well by reading Gartner reports and doing the opposite. When they start getting bullish on AAPL someday, that’s when I sell my shares!

  2. You know what would be “clever”? For Apple to use some of their $60 billion war chest/$20 billion annual cash flow to offer attractive financing terms on the unsubsidized portion of the purchase price.

    $10/month tacked on to the cell phone bill over the 2 year contract would yield a 20.6% return which is more than enough to cover bad debt. Motorola and HTC have around $3 billion cash total. What could they do about it? nada

    I expect Apple to start flexing their muscles soon. Does anybody really think they are just going to repeat the exact same strategy as they did with PCs? Or will they execute the strategy they did with iPod. duh

  3. It’s very cynical – you can’t sell 1,000 copiesof a report at $25k to telcos, manufacturers andother interested parties for stating the obvious but if u say something totally off the wall, those who are in the win-symbian marketplace or competiting against those have to buy the report to read it … There are no refunds and they know in 3 years when it’s not true, they can just blame nokia and ms for failing o execute …

  4. @Jeff Tribble

    Apple is smarter than what you had suggested – by using their cash to get the best deals they ensure the best products are available to everyone at a reasonable price,

    By using their cash to finance affordable products which the telcos are doing is simply dumb.

  5. Hey, Apple’s sold over 15 million iPads going on 20 Million; 100 Million iPhones; maybe over 100 Million iPod Touches. It’s only a matter of time before iTunes & App revenues surpasses Google’s search revenue- how about them Apples?

  6. I agree that Gartner predictions are usually stupid, but that’s the only sensible part. It doesn’t matter what Apple claims, they can’t compete on the low end when Android phones are already being given away *without* a contract. They’ll have enough of a fight on their hands in the lucrative first-world, mid-to-high-end market where they have some advantages and experience.

    If Garnter were giving out percentage points based on C-level executive bluster rather than actual products and strategies already revealed and in play then they’d probably have an even more insane share for Microsoft/Nokia.

  7. Like it or not: Apple’s going to make more $ this past quarter from smart covers than Google does from Android.