Historical View of iPhone Pricing

The new iPhones went on sale today.  Since the announcement, much as been written about the two models - and especially the implications for Apple.  I previously reviewed some of the insights gleaned from Apple's financial statements and wanted to enumerate on that discussion.  As the following charts illustrate, Apple's reported price for the iPhone…

An Integrated Hardware/Software Approach

Over the last few weeks both Google (see Nexus Tablet and Nexus Q) and Microsoft (see Surface) have announced major hardware initiatives.  In both cases, these hardware initiatives have been primarily focused on the mobile/tablet ecosystem.  Even Microsoft's recent software announcement - Microsoft SmartGlass - is targeting the growing tablet ecosystem.  Both companies are taking a more hands-on approach to the growing tablet ecosystem as they seek to more closely integrate their software strategy with a hardware component.  These moves are partly in the hopes that a hardware component will spur software demand and help buoy their entire platforms respectively.…

Is Apple Winning the Enterprise?

Good Technology is a privately-held company which offers a mobile solution for corporate and government clients. The core offerings include email, calendar, and secure mobile access to applications and company data.  While the customer base is likely small relative to the entire universe of tablets and smartphones and many end-users are likely bringing personal, mobile…

On Apple's 1Q12 Numbers, iPads and other Apple-related Musings

Apple surprised to the upside (though it really shouldn't be a surprise) with their quarter results today.  Here is a quick overview of what they reported for fiscal 1Q12:

  • Revenue: $46.3bn (+64% q/q +73% y/y) v. consensus of $38.9bn and company guidance of $37.0bn.
  • Gross margin: 44.7% for the quarter (up 440 bps q/q) v. consensus of 40.8%.
  • Operating margin: 37.4% (up 660 bps q/q) v. consensus of 32.5%.
  • Earnings Per Share: $13.87 v. consensus of $10.08 and company guidance of $9.30.
  • Mac sales: 5.20M (+6% q/q +26% y/y) v. consensus of 5.16M.  This figure includes 1.48M (+16% q/q  +21% y/y) desktops and 3.72M (+3% q/q +28% y/y) portables.
  • iPhone sales: 37.04M (+117% q/q  +128% y/y) v. consensus of 30.2M
  • iPad sales: 15.4M(+39% q/q +110% y/y) v. consensus of 13.9M
  • iPod sales: 15.4M (+133% q/q) v. consensus of 13.6M

There has already been much written on the results so I'll just add my thoughts (in bold) to the commentary below:

Tablet and eReader Ownership - How to Read Apple's Numbers

Later today, Apple will report Q1 figures.  We know much has changed in the tablet market over the last three months.  Earlier this week, Pew Research Center’s Internet & American Life Project reported tablet and eReader ownership (unsurprisingly) surged during the 2011 holiday season.

This is consistent with what I expected (and subsequently reported) following Black Friday and the (unofficial) start of the holidays. Starting with Black Friday (but really through the entire holiday season) several things too place to help drive tablet sales.  First, prices came down significantly.  Prices for many of the "high-end" tablets were marked down significantly and lower priced tablets entered the market in calendar Q4.  A declining price helps up-take.  Secondly, both devices have been in the marketplace for 18+ months and are moving quickly into mass market appeal.  We are moving into the fat part of the adoption curve.  Finally, tablets were the loss-leader for many retailers on Black Friday.  While the volume wasn't high on a single-store basis, in aggregate there were a plethora of tablets (from a variety of OEMs) bought during the weekend across a myriad of retailers from Best Buy to Big Lots to Radio Shack to Staples, to ToysRUs.  CEA estimates 14 percent of those who purchased tech over the weekend bought a tablet - up from six percent in 2010. eReaders also did well over the weekend with an estimated 15 percent of tech shoppers buying an eReader.  This figure is up from 13 percent in 2010 and two percent during the 2009 Black Friday weekend.

According to Pew, both tablets and eReaders are now owned by about roughly 1/5 of the US population.  More than a third of those living in households earning more than $75,000 (36%) now own a tablet computer and almost a third of those with college educations or higher (31%) own tablets.…