Archive for the ‘Apple’ Category

That Fruit Company is on a roll

July 27, 2007

AAPL just announced a fantastic quarter. A quarter driven, not by the iphone, but by mac sales. that whole ‘Halo effect’ theory seems like it’s finally gaining traction.

The interesting bit of course, is a reported rise in profit margin. Yes, helped along mostly by lower component prices worldwide, but a wonderful piece of news for investors. Profit is up some 70+% and profit margin is up some 1.8 %. Apple is actually hitting margins close to the high 38’s, which is just fantastic. The astonishing part is that growth is being witnessed in the Computer division – a vertical in which ruthless competition has driven pricess to such low levels that even the biggies with all their synergies make only razor thin margins. Apple’s model and their differentiation through Hardware and Software is really allowing them to surge ahead.

The iphone accounts for almost none of these stellar numbers because firstly, the iphone came out way too late for it to make a meaningful impact and secondly,apple books iphone related revenue over 2 years – like service revenue. Useful, no doubt, to smoothen out the off-rough quarter.

This company is looking mighty strong. Some more rumors of much deeper relations between Google and Apple and we really have a story going – The device, the software, the channel, the service and the experience all rolled into one. And we haven’t even mentioned the web 2.0 business model yet.

Man, it really is getting hot. Microsoft, where are you?

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Maybe not so phony after all?

June 30, 2007

 For starters, I hate those motherhood type – general, unsubstantiated and so glorified beyond any semblance of reality that they actually appear funny – statements. So naturally, when the (i)god of motherhood, turtlenecks and faded denims proclaimed some months back that his company was redefining the phone, I ibalked. I mean seriously, I already have a phone that does whatever his magical creation purports to do. Yeah reinvent? – sure.

Then yesterday happened. iday, as some tech blogs proclaimed (Gee, don’t they think they are smart?). I managed to read a Scoble post once he bought the phone. Maybe its adrenaline and he won’t end up being so irosy about iphone after all, but the way he gushes about the phone points to a larger effect (yes, you guessed it – the ieffect).

You see, the iphone does not reinvent the phone. The iphone experience (iphone XP? 🙂 )reinvents the phone. Apple has this magical aura which just makes slightly superior products appear magical. iphone is one, OS X is the other and of course, so is the ipod.

The iphone is redefining the phone experience – in a phone lifecycle sort of way. And frankly I think that is just fantastic.

Maybe this is just a case of post purchase euphoria. You wouldn’t be normal if you acted nonchalantly about something you waited some 28 hours on a street side for. But hey, if it added to the experience, it can’t be so bad.

That man Steve Jobs is a Magician. Er, did I say I hated motherhood statements? ilied!