Greg's Bite: The Self-Cannibalism Effect at Apple
TweetFollow Us on Twitter

Greg's Bite: The Self-Cannibalism Effect at Apple

By Greg Mills

Apple has a uncanny ability to understate the forecast for the following quarter's revenue each time they do the quarterly financial report to the analysts who are hanging on every word. Then 90 days later, they wow the very same crowd with unexpected numbers that blow the lid off the highest estimates. It is a game with gigantic money at stake.

This time around, despite a gigantic increase in sales and net revenue, iPhone 4 sales were a bit lower than expected and you would have thought Apple was going under. The stock plunged and headlines were published that "Apple Disappoints" and the entire market took a hit for a while. Cook correctly stated that the problem was simply people waiting for the next iPhone in the que, rather than any weakness in the red hot market for things Apple.

The CEO of Microsoft, while in its prime, stated that: "A company that fails to obsolete its own products is doomed to see the competition do it." That is a quotation from Bill Gates, Steve Ballmer either wasn't at work that day, or someone didn't translate it to him in language he could understand. Apple obsoletes its own products regularly and they have admitted that iPad is cannibalizing some Mac sales, which were still very strong.

Apple stock is bouncing back and consumers were still buying iPhone 4S like hotcakes for every carrier, including the ugly ducking cellphone carrier, Sprint. An analogy would be that "oh my gosh, Apple is walked on water ... but they got the bottom of their feet wet!" Go figure, I bet Dvorak sold his Apple shares.

Apple blames, to some extent, the press for raising the stakes so high in expectations regarding upcoming iPhone launch that a lot of people are waiting until the next release, the iPhone 5, instead of buying iPhone 4. The two-year cell phone contract cycle and the timing of the release of new iPhones is certainly an issue. Car companies face the same issue as people wait for the next year's model to buy a car.

I am one of those iPhone 3GS users with a few more months left to go on my contract, and I figure I might as well wait those few months and go with the iPhone 5, expected late next spring. Electronics hardware has an obsoleteness factor based upon new and compelling features that require the latest technology. Buying things mid-cycle tends to cause your hardware to get "long on the tooth" before you are ready to replace it.

Apple chose to push Siri as the killer feature that requires iPhone 4S to use. The reason stated is that the faster dual A5 chipset is required to operate the sophisticated voice recognition software that allows Apple's servers to respond to inquiries with the slightly sarcastic but accurate responses that are delighting the market.

Within hours of iOS 5 being launched and iPhone 4S being sold, iOS 5 was hacked to allow Siri to run on iPhone 4 and possibly, even my ancient iPhone 3GS. There are ways Apple intends to keep Siri running only on iPhone 4S to preserve the exclusivity of the feature for the new iPhone. Namely, the Apple servers know to whom they are connected to and which device you are using. Part of the hack is to confuse the servers into thinking you are using an iPhone 4S when you are actually using an older model.

Reportedly, the hack does not require jail-breaking your iPhone but does require some third party software to add an App that is not approved by Apple. That Siri work-around app is likely to be sold rather than being given away, and you know Apple will crush it any way they can.

That Siri will work, even slowly, on an iPhone 4 is evidence that Apple is making Siri exclusive for the iPhone 4S largely for marketing reasons, but things not working 100% right isn't the Job approved way of doing business. If the hack can get Siri running at full speed on previous hardware, that would make the issue 100% a marketing decision and a lot of pressure would come down on Apple to open Siri up "to the rest of us".

As i mentioned the other day, Siri is certainly coming to the Mac OS and iPad 3, sooner than later. I am also an iPad 1 owner keen to upgrade to an iPad 3. Rumors of a retinal iPad display and Siri will certainly push the already hot iPad market along, crushing every tablet competitors launch. I don't consider the Amazon Flame tablet a direct competitor to iPad, but I do see the potential for a bottom rung iPad with a smaller screen at a cheap price for putting out the Amazon Flame, before it reaches critical mass.

Will Apple match the loss leader US$200 price point Amazon set? Ask John C. Dvorak, he knows everything, (just a bit of sarcasm), but that is just Greg's Bite.

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Dispatch is bringing its superhero shena...
If you were anywhere online last year, then you would have no doubt heard of Dispatch, and been flooded with videos of it. With its star-studded cast and unrelenting humour, it fast became a hit, racking up over four million downloads. And it is a... | Read more »
5 reasons to sink your teeth into VAMPIR...
On October 28, Netmarble will globally launch VAMPIR, its latest and most macabre MMORPG, plunging players into a Gothic world of vampires, sorcerers and cursed creatures of the night. Built around blood, fear and large scale battles, the MMORPG... | Read more »
Gundam Blitz Order opens registration fo...
It would appear that video game developers are delving into my childhood and making idle games from my favourite TV shows. First, Bandai completely whiffed with Digimon Up, perhaps the single biggest miss of a beloved franchise in recent memory. Now... | Read more »
The Traitors Interactive Game lets you l...
With the second season of The Celebrity Traitors in full swing, the world is once more enthralled by just how good a liar our heroes are. I don’t watch it, but I hope James Blunt wins. The premise does intrigue me, however, and thanks to Fusebox... | Read more »
Dissidia Duellum Final Fantasy brings in...
For all his successful manipulations and successes through Final Fantasy 9, I never really liked Kuja. And it's not like I dislike him; more I nothing him. But that's just me; the vast majority of the fandom adore him, and they are in luck, for Kuja... | Read more »
Combo Quest (Games)
Combo Quest 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Combo Quest is an epic, time tap role-playing adventure. In this unique masterpiece, you are a knight on a heroic quest to retrieve... | Read more »
Hero Emblems (Games)
Hero Emblems 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: ** 25% OFF for a limited time to celebrate the release ** ** Note for iPhone 6 user: If it doesn't run fullscreen on your device... | Read more »
Puzzle Blitz (Games)
Puzzle Blitz 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Puzzle Blitz is a frantic puzzle solving race against the clock! Solve as many puzzles as you can, before time runs out! You have... | Read more »
Sky Patrol (Games)
Sky Patrol 1.0.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.1 (iTunes) Description: 'Strategic Twist On The Classic Shooter Genre' - Indie Game Mag... | Read more »
The Princess Bride - The Official Game...
The Princess Bride - The Official Game 1.1 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1 (iTunes) Description: An epic game based on the beloved classic movie? Inconceivable! Play the world of The Princess Bride... | Read more »

Price Scanner via MacPrices.net

Amazon Offers 14″ M5 Pro MacBook Pro for $206...
Amazon is offering another opportunity to save on Apple’s 14-inch M5 Pro MacBook Pro, with new offers on the Space Black configuration with 24GB RAM and a 1TB SSD starting at just $2069.10. Apple... Read more
Amazon Takes $900 Off 16″ M5 Max MacBook Pro,...
Amazon has expanded its latest sale on Apple’s 16-inch M5 Max MacBook Pro, dropping the Space Black configuration with 36GB RAM and a 2TB SSD to just $3499. Apple sells this configuration for $4399,... Read more
B&H Slashes Up to $1400 Off M4 Pro Mac mi...
B&H is offering new clearance discounts on select previous-generation Apple Mac minis, with savings of up to $1400 on high-end M4 Pro configurations. The sale includes the standard M4 Mac mini... Read more
B&H Slashes $400 Off 14″ M5 Pro MacBook P...
B&H has launched a substantial new discount on Apple’s 14-inch M5 Pro MacBook Pro, taking $400 off the Space Black configuration with 24GB RAM and a 1TB SSD. Regularly priced at $2499, the 14-... Read more
Take $50 off iPad at Amazon, prices start at...
Amazon again has 11th-generation A16 WiFi iPads in stock on sale for $50 off MSRP, starting at $399. Shipping is free: – 11″ 11th-generation 128GB WiFi iPads: $399 $50 off MSRP – 11″ 11th-generation... Read more
Amazon Lowers 13″ M5 MacBook Air to $1149, No...
Amazon has increased its discounts on Apple’s 13-inch M5 MacBook Air, dropping the standard 16GB/512GB configuration to just $1149. Apple sells this configuration for $1299, so Amazon’s latest price... Read more
Amazon and B&H Slash Mac mini Prices, M6...
Amazon and B&H are offering new discounts on Apple’s M6 and M5 Pro Mac minis, with savings reaching $149.01 and prices starting at just $779. Configuration Apple MSRP Retailer Sale Price Savings... Read more
Amazon Takes Up to $150 Off 15″ M5 MacBook Ai...
Amazon has launched new discounts on Apple’s 15-inch M5 MacBook Airs, with savings of up to $150 and prices starting at just $1399. Configuration Apple MSRP Amazon Price Savings 15″ M5 16GB/512GB $... Read more
Amazon Takes Up to $150 Off 13″ M5 MacBook Ai...
Amazon has launched a new round of discounts on Apple’s 13-inch M5 MacBook Airs, with savings of up to $150 and prices starting at just $1199. Configuration Apple MSRP Amazon Price Savings 13″ M5... Read more
Verizon Launches iPhone Duo Pre-Orders With N...
Verizon has opened pre-orders for Apple’s new iPhone Duo, the company’s first foldable iPhone, with prices starting at $1999.99 and a new no-trade-in promotion available through its Simplicity Plan.... Read more

Jobs Board

All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.