iOS 7 teaser (iPhone 5c ad 005)

What better way to manipulate AAPL than trash-talk the company on a Friday and let bloggers disseminate FUD? First, UBS analyst Steve Milunovich articulated his disappointment with iPad sales because the tablet in general “simply isn’t a must-have device” (I swear I’m not making this up).

Next, Henry Blodget (who runs Business Insider) is back with his ‘iPhone dead in the water’ meme: Apple’s refusal to go for low-value customers has been ticking Blodget off for some time, even if the move carries the real risk of damaging the brand beyond repair.

Then, a Chinese blog asserts Apple is further trimming the iPhone 5c production as early adopters continue to prefer the flagship iPhone 5s. Finally we have Morgan Stanley creatively putting all of the Android tablets together – including those sold on the Moon plus sub-$50 no-names sitting in the drawer collecting dust – to proclaim Google’s platform a revenue winner.

Grab your popcorn and chillax…

First up is Steve Milunovich, an analyst with UBS, via BGR:

The analyst explained that he has been disappointed with Apple’s iPad sales and that tablets in general are at risk from sales of smartphones, phablets… and PCs. The tablet simply isn’t a “must-have” device, he explained.

Here’s your money quote (emphasis mine):

The smartphone is best at keeping people in contact with friends and family. The PC’s differentiation is to do work with productivity apps. The tablet is particularly good at entertainment.

Content creation is the tablet’s Achilles heel. So far Apple appears okay with that but an alternative is to develop a convertible product aimed at a different job to be done.

I stopped reading at “content creation is the tablet’s Achilles heel”.

“The answer, it would seem, is a netbook,” BGR author Zach Epstein sarcastically remarked. For a NSFW take, see The Loop’s Jim Dalrymple, screenshoted below.

Screen Shot 2013-11-15 at 18.11.37

Next up is Henry Blodget, who ran a linkbait write-up on Business Insider titled ‘Come On, Apple Fans, It’s Time To Admit That The Company Is Blowing It’ which boils down to that it’s high time Apple went for low-value customers with cheap products.

Apple is losing smartphone share in China to dirt cheap local brands because the company is being “greedy and shortsighted and choosing to maintain its already fantastically high profit margins at the expense of market share,” his logic goes.

As if that weren’t enough, Blodget called Apple’s strong U.S. smartphone share “an anomaly”. This reminds me of the following Steve Ballmer quote from 2007:

There’s no chance that the iPhone is going to get any significant market share. No chance.

That didn’t work out well for Ballmer.

slide055-5

Blodget continues unabated:

If Apple continues to pursue its current pricing and maximize-short-term profit strategy, it may continue to increase its profits for the next couple of years. (BlackBerry and Nokia grew earnings for a couple of years after some analysts began seeing the writing on the wall.)

I thought he was being genuinely worried about Apple losing platform and ecosystem share “in most of the world”, until I read the following passage.

Apple fans can talk all they want about how Apple is “like BMW,” but in a couple of key competitive respects, it isn’t. And if the gadget platform market behaves the way other platform markets have (think Windows), Apple and its fans may come to regret this short-term thinking in the end.

As if Blodget knew what Apple fans would want, let alone think.

So the only thing that matters ever is market share?

He’s basically suggesting it would have been better if Apple turned into a money-losing business with the dominating share, a position pretty much all handset makers other than Apple and Samsung find themselves in nowadays.

There’s Blodget’s chart and there’s this.

apple-profits

I’m pretty sure asking HTCs, Nokias and LGs of this world whether they would sacrifice their market share for Apple’s profitability would yield a negative response, unanimously.

It’s worth mentioning that Blodget has a history of failed predictions, linkbaits and downright insulting Apple criticism. It’s also worth remembering that Blodget in 2003 got charged with civil securities fraud by the U.S. Securities and Exchange Commission, prompting him to agree to a permanent ban from the securities industry and pay a hefty $2 million fine plus a $2 million disgorgement.

Maybe the fact that he is an Apple shareholder has something to do with such obvious attempts to manipulate the shares?

Screen Shot 2013-11-15 at 18.26.29

Then there’s Chinese website C Technology (via UnwiredView) which claims Apple’s iPhone 5c contract manufacturer Pegatron has reduced output from 320,000 units per day in October to just 80,000 units per day. The story adds that Foxconn, which also assembles the device, is now operating at a minimum capacity of 8-9,000 units per day.

Can’t wait to read WSJ’s take on that one…

fiksu_iphone_nov15

Look, it doesn’t take a genius to figure out that the iPhone 5s sells better to early adopters than the iPhone 5c, which is basically a repackaged 2012 iPhone 5. One also doesn’t need to be a brainiac to figure out that the iPhone 5c is more of a slow-burner.

Such convoluted logic is the same as someone a year ago complaining about the 2011 iPhone 4s failing to outsell the then-new iPhone 5. Because that’s what the iPhone 5c is – a last year’s iPhone discounted by a $100, only colorful.

Wrapping up the criticism, Morgan Stanley analyzed data from market research firm IDC to claim the iPad now trails Android in both units shipped and revenues.

Morgan Stanley’s Katy Huberty wrote in a note to clients:

For the first time. Android devices accounted for a greater share of the market in revenue terms than iOS. Android revenue share reached 46.2 percent in 3Q13, for the first time exceeding iPad share of 45.6 percent.

Android’s unit share grew to 66.7 percent from 58.5 percent a year ago, largely driven by Samsung and Lenovo, while iPad share declined to 29.7 percent from 40.2 percent.

She is referring to IDC data from two weeks ago which relegates Apple’s share of tablet shipments during the September quarter into the sub-30 percent category, their lowest level yet. However, the numbers don’t include new iPads which were announced in October.

And I’m not even mentioning the fact that IDC recently “discovered” ten million tablets it supposedly failed to count in its original estimates a year ago. As a result, the “research” firm has now retroactively lowered Apple’s tablet share.

In the same vein, Strategy Analytics – which counts Samsung as a client – invented millions of non-iPad tablets in order to artificially deflate Apple’s market position.

IMG_0615
A snapshot of 5-day AAPL performance via iOS Stocks app, data provided by Yahoo.

I just wanted to share this with you and get off my chest that I’ve grown sick and tired of this ill-intended market share obsession, linkbait Apple hate and armchair analysis.

There’s no trusting disillusioned crazypants analysts – they promised us flying cars before and have been calling for an Apple television set “this Christmas” for years.

There’s also no trusting research firms that get estimates wrong and compare Apple’s reported unit sales to estimates, because virtually every other handset maker chose not to report sold units for the supposedly competitive reasons (case in point: Samsung and HTC, for example).

And there certainly isn’t trusting analysts’ friends in media whose harsh criticism of Apple is inconsistent and biased because they own shares of the company and pursue their own agenda.

Draw your own conclusions and by all means do feel free to disagree with me and vent your frustration down in the comments.

Disclosure: I don’t own shares of Apple or any other company for that matter. Do I get to keep my fanboy badge now?

  • Mohammad Ridwan

    Ha Ha..

  • hkgsulphate

    80% of smartphones run Android
    developers still earn the most from App Store….

    • Skrilla

      Even Google bring out most of their Apps first on iOS

      • grumpyfuzz

        The only time they did was with hangouts. You can’t name another one, and the only reason they made it on iOS first was because they were waiting to update hangouts for the new android version, KitKat.

      • planetcoalition

        They actually said Google Maps for iOS was better than Android when it was first out.

      • Hwang Lee

        Aren’t their apps on Android more comprehensive though?

    • Christopher

      Out of 80%, 90% don’t even use there phones for apps. 😉

  • appleyay

    android sucks

  • Saturn

    Lmao. I couldn’t help but laugh at this article. You sound like a raging fanboy instead of a grown man. Are your eyes popping out of their sockets?

    • Tommy

      Well, its not surprising considering it’s written by Christian. Whenever I see these kind of articles I can tell without looking that it would be written by our one and only Mr. Butthurt-of -the-Year 🙂

    • ishaluka

      This one coludn’t be qualified as an article. Rather seems like what should be written down in his personal diary or whatever place he writes not as the job.
      I’m wordering why iDB thinks articles like this, often Christian’s one seemingly, are decent enough to be posted on their site.

  • Skrilla

    Maybe people are sick of Apple’s “if it isn’t broken don’t fix it” updates on most of the iPads

    • Christopher

      The thing is, it was perfect before iOS7. They broke it now.

      • Vijay Panjwani

        The thing is, you never used ios7! Its beautiful!

      • De x

        Is beautiful if you’re a 3 yr old or a junkie who likes spazzing out to neon colours and unicorns.

      • Christopher

        Are you kidding me here? Really???? I have an iphone 5S space grey, iPhone 4S black, iPad mini Ratina, iPad air. Do I need to say more? iOS 7 is disgusting to such a level that I had actually thought of getting a nexus 5 recently. But I like APPLE’s ecosystem better so didn’t do that.

      • 4p0c4lyps3

        Pfff… BS.

      • Christopher

        Ok son.

      • blastingbigairs

        +1. I refuse to upgrade to IOS 7 until there is untethered JB. Nope, won’t do it!!

  • Vince Reedy

    Great research Christian, very comprehensive article.

    • Reason

      I legitimately pray that is sarcasm.

  • mehrab

    Why is the analyst disappointed at the end of the days his still making money

  • Kenny Woodard

    Lets don’t kid ourselves here. The iPad is great and all, but yes, it is way overpriced. Look at the Nexus 7? Is it an iPad? No.. But it’s half the cost and a good, and capable, device. Even the new Galaxy Tabs are nice and way cheaper than an iPad of equal storage.

    The iPhone, nice an all, but still overpriced. Everyone agrees the 5c was a joke at 99$.

    • mehrab

      5c for 99 is very cheap! Moto x?
      5c on many carriers is free
      The ipad mini is 170 more then the nexus 7 it has a higher res 4:3 retina display and beats the nexus 7 in terms of display quality just compare them next to each other you”ll see retina minis can go on for 10.5-12 hrs
      They have a tablet optimized os, with 475,000 powerful apps the mini is thinner and the whole thing is made out aluminum. Now performance the nexus 7 is laggy in games,web browsing and scrolling basically the mini has an a7 its the fastest 7-8 inch tablet in the world also it has the most decent cameras. This mini will eventually support 2 ios updates ios 8,9 after that it will probably last for 2-3 more updates so ios 11 i guess?
      ^All that for 170 bucks more?
      Its called a steal

      • Hwang Lee

        My N7 runs fine, it rarely lags.

      • mehrab

        Yes i bet if you use it to go around the os its fine then but scrolling is lagging web browsing is not near ipad reign and apps are a mess so is gaming

      • Sad thing is that you haven’t even tried an Nexus 7. My Kindle Fire first generation running aosp android runs fine. And that’s with no overclocking

      • mehrab

        nope tried them its laggy to me sorry i prefer 60 fps at all times in games apps multitasking scrlling flicking or whatever lol

      • Kurt

        Scrolling on iOS is so slow. You need to flick multiple times to reach the bottom of a page. Android is one flick. Much faster. Quit your lying.

      • mehrab

        haha the slow scrolling is much better it actually allows you to read things and we all know how gorgeously blurry things get on your big faux leather note 3 dont we? to go all the way upwards your just tap the status bar once which does not exist on androdi

      • Kurt

        so then scrolling lags on iOS because you said it lags on android now you say android is indeed faster. you lie too much.

      • mehrab

        Wtf is up with you man? I never said that i only said scrolling is faster its not faster it just takes lesser flicks to get thru stuff which ios does not need it back go up with one tap in .2 secs? and its also terrible reading/looking for something specific on a long list

  • Christopher

    Make iPhone 5C available for 450 unlocked. Bam! That is it.

    • Kenny Woodard

      I wouldn’t buy it even for that. The nexus 5 is 350$ unlocked and actually has specs from this year. The iPhone 5c had specs from 2011-2012 and we are a little more than a month away from 2014. Plus the nexus 5 has a bigger 1080p screen with 2gbs of ram and the latest android. They have comparable cameras. I mean, the Nexus 5 trumps the 5c in almost every single way.

      • CollegiateLad

        lol @ specs from this year.

      • Kenny Woodard

        And the major price difference.. And idk about you, but screen size seems to pretty important. And if you’re going to be locked into a two year contract, those specs will be very important in about a year when your phone is even farther behind other phones.

      • CollegiateLad

        I mean, what grandma walks into AT&T and says, “show me all your phones with 2 gigs of ram and a 3.2 ghz processor”?

        Come on man. The majority of these people will make phone calls, take pictures, and waste time on Facebook. Specs will have little impact on these daily activities.

        Granny will be more than happy with the iPhone C – and Apple knows this.

      • Kenny Woodard

        But they will care about price. And like I was saying anyways, it’s about the phones being comparable. But one costs way more than the other.

      • CollegiateLad

        People do care about price. But they also care about brand too. And as you said, some care about specs.

        The consumer doesn’t fit into one category. Unlike you, some will see the iPhone 5C as a value. And what they value is markedly different than what you and I value.

      • Kenny Woodard

        I do agree with that. To me, there’s just no way the 5c is a better value than the N5. But that’s mostly because I know all about them. Sure someone could walk into Walmart and see a nice phone for under 100$. I’m not saying the 5c is a bad phone, it just doesn’t stack up to the nexus 5 for me.

      • CollegiateLad

        What you and I value others might deem worthless or unnecessary.

        When I bought my corvette, my brother tried to tell me that the mustang or camaro was the better value. I didn’t think so. But was he right or was I wrong? I say we both were right.

      • At

        If you walk into a store you will find the 16gig N5 for $149.00 with a 2 year contract, at the same store the 5C is $49 with a 2 year contract. Most non technical people will go with a 5C just because of the name recognition and people like color. Most people don’t want to drop $299-$399 on a unlocked phone.

      • Kenny Woodard

        I think that’s only through sprint. Which is the third or fourth largest company. An unlocked phone means you can take it to any company you want, and not necessarily have to be in a 2-year contract. That’s the advantage. iPhone 5c is quite a bit more.

      • At

        Any best buy, Walmart, target all have the 5c for $49. Not sure about carrier stores but most would price match I believe.

      • Christopher

        Yes, if specs is everything for you and if you think specs will make things run faster.

      • Kenny Woodard

        No I want the Moto X actually which has mid-range specs. But the specs should determine the price. That’s what I was trying to argue before people started taking my words the wrong way.

      • Christopher

        Specs should determine the price if you get same services on different specs. In that case specs determine the price for android phones. If you are in APPLE ecosystem, end of story. There is no bargain until & unless they start licensing out there OS.

      • Christopher

        Really? Only a granny will buy a phone for specs because her eyes wont see any difference between the apps running on iPhone 5C/5S and other android phones. Good luck man. P.S all the apps and games run far better on iPhone 5C (Not even 5S) than any android phone out there. Period.

      • Kurt

        Exactly. Screen size is number 1 for me.

      • mehrab

        My 4s runs all games and runs all apps perfectly fine ans handles ios 7 impressively the 5c is better in every way then the 4s the nexus 4″s processor is slower then my iphone 4s”s next year the nexus 5 will start to show its age while the 5c will strat fo show its age after ios 10.

      • Kurt

        my 4S lags big time on iOS 7. quit your lying

      • planetcoalition

        My 4S is perfectly fine too. It loads apps slower than my 5s and that’s it. Quit your lying.

      • mehrab

        you dont have a 4s shut up

      • Christopher

        4 Lags on iOS7. 4S is perfect if to switch of motion and increase contrast.

      • Christopher

        Really? Are you kidding me?
        You are of those android lovers who would buy a phone for specs? Good luck.

      • Hwang Lee

        Specs are important.

      • Christopher

        Only for fandroids who have no idea whatsoever.

      • Hwang Lee

        So Apples 64 bit A7 was a complete waste of time and energy? I think not.

      • Christopher

        Well it is not like cramping up a 3GB RAM for the process that an iPhone would of better in just 1GB. It is about optimization.

    • Rowan09

      I thought that might be the case but according to reports China sold more 5s than 5c even though it’s cheaper. I really believe the 5c was made for subsidize companies and not for buying straight up.

      • Christopher

        Well the 100$ difference doesn’t matter when you gadget already costs 700$. 🙁

  • SEAUte

    Someone better tell Tiffanys and Ferrari that having the highest market share is more important that the profit margin.

    • CollegiateLad

      By now, shouldn’t it be obvious that market share isn’t the goal?? It’s like the analyst and even some of the Apple faithful just don’t get it.

  • Reya Huang

    Only natural. The ppl who know Apple love it, those who don’t, hate it. Best example is that everyone in my family got convinced by me to try an Apple product, and has since then been a loyal Apple customer. All except my dad that is, who to this date is still too stubborn to try out Apple. He’s the kind of guy who take one look at English, and calls it alien language that no one should get, just cause he can’t accept his genius self to be unable to comprehend it. Last time i told him Apple sold operating systems for $20, he deems impossible without bothering to look. Now that it’s free I wonder what else he gotta say? Rather than loyal Windows/android fan, I say he’s a loyal Apple hater.

  • Kenny Woodard

    I’m still in shock that Apple discontinued the iPhone 5.. Kept the outdated 4s (from 2011) and gave you a plastic iPhone with the same specs of the 5. That just oozes with greed and not having the customers come first. The pricing tiers of iPhones is just a joke. 100$ more for 16gbs of extra memory? Really?

    This is what should have happened.

    4s- discontinued
    5- 99$
    5c- 49$ ( ONLY if they made it in the first place )
    5s- 149$ for 16gb
    199$ for 32gb
    249$ for 64gb

    • Kurt

      it’s amazing the price of a 128 gig ipad and a 16gig ipad. People are fools.

  • Christopher

    Personally I’ve started using iPhone, iOS, and the iPad since there beginning and I can say they’ve made amazing strives in only a few years. Apples future is set an can only improve even more

    Now these analysts make up all their predictions on what apples gonna do ( like iPads having fingerprint scanner feature) an get paid a boat load even if their predications dont come to be true, then when Apple delivers there new line up for the year they bitch about it

    And yes i am a Apple Fanboy. I use a iPhone 5S/ iPad Air/ MacBook Pro in that order lol

  • Rowan09

    My fiancé sister has a Kicoshi Android tablet I believe that’s the name, she used it once and it’s sitting in a draw and she use my daughters iPad mini instead. Some Android tablets are a piece of junk, I would never recommend anyone to purchase a no name Android tablet in the US because from my knowledge they are all junk. Nevertheless it’s the same thing Apple is going through in the mobile space that they did with Microsoft in terms of Microsoft giving Windows OS to multiple computer manufacturers. A true gauge in my opinion would be usage of these Android tablets, I promise you anyone that buys those $50-$100 non name Android tablets don’t use them at all.

  • Matt

    BMW – The ultimate driving machine
    iPhone – The ultimate personal everyday machine.
    I just hope they didn’t diss BMW cause I bet they drive in Priuses. -.-
    BMW is pure, beautiful, innovative, amazing, simply stunning.

    • Christopher

      I have a Mercedes & an iPhone

  • Hwang Lee

    I read somewhere that when a brand goes under 10% of market share, developers start moving away from that OS and develop for the more popular ones. Even if iOS did go under 10%, I doubt that developers stop developing for them, but there is always reason to be worried..

  • n0ahcruz3

    Iphone 5C will eat dirt when Moto G arrives at $199 16gb NO CONTRACT. I’ll be one of the first to get one lol

    • Hwang Lee

      Google / Motorola a doing a ridiculously good job with this “more smartphone less money” business. Best of luck to them, seriously.

      • n0ahcruz3

        Yup google sells their devices at a loss but google’s mantra is all about google services and ads.

    • felixtaf

      5C is already eating dust. I doubt Moto G will change the way people buy phones. Same thought was there, when Nexus 4 was released. But it doesnt sold much or Google doesnt want to sell much. Damn it was out of stock whenever I tried to buy. So, I gone for a Note 2.
      I saw the Moto G launch and its specs. Its an impressive phone (although the max capacity is 16gb). Actually it puts Moto X to shame!

      • Hwang Lee

        The Moto G is for developing countries (hence no LTE, most developing carriers don’t support LTE). But the Moto G is very very impressive for its price.

      • felixtaf

        I agree. Im planning to get one, once it available in US.

      • n0ahcruz3

        Will arrive in US on January.

  • Sean Cua

    They were probably paid by Samsung.

  • Reason

    Hey Christian Zibreg, you wanna know why “content creation is the tablet’s Achilles heel”?

    Because you need a keyboard and mouse.

    A standalone tablet — be it an iPad or even a W8.1 tablet — is next to useless for real content creation without these peripherals. Or are you going to try to convince me otherwise by typing out an entire article using the iPad’s onscreen keyboard?

  • Oh Snap

    The iPhone 5 did not get discontinued. The iPhone 5C is a plain old iPhone 5. Its just colorful now. Thats why sales are down. Who wants an old phone.

  • whatsa2

    Sounds like denial click bait?

    even Nokia are beating Apple in some markets -lol
    Its just a flashback to MAC. its coming as it always does for apple/

  • Ram Dasika

    Man IDB I know u guys are a “Little” biased towards apple as you are fans it understandable but whats with u guys for past few days as if trying to save apple from doom or something.I read a previous article about samsung an elobarate post saying something about innovation and blah blah first kind of article in IDB I read following you guys over years.second you say as if the enitre world is against the “Righteous” apple crusade for its fans lol

    biggest question ever is apple doomed ???? maybe in a few years like 5-10 various reasons the next ceo may blow it up people might realise or whatever any company how glorious its rise is it has to fall someday like blackberry did not today or immediately but slowly and definitely.If there is rise there has to be fall end of it why bother and waste posts on discussing whether apple is doomed or shares falling or whatever nonsense u guys post and try to implant