Business

Could Apple offer iTunes affiliate revenue to carriers as a subsidy for LTE data plans?

Could Apple offer iTunes affiliate revenue to carriers as a subsidy for LTE data plans?

Chris Umiastowski 5

Last week we saw Amazon drop a bit of a bomb on the competition by offering a $50 per year data plan. At 250MB a month, it isn’t a very good data plan, but people will buy it. I wondered how Amazon could have negotiated such a good deal with AT&T. Perhaps they’re cutting them in on revenue from users who shop on Amazon while using a Kindle Fire HD via the LTE data network? It was...

Making dollars and sense of Apple’s enormous share of mobile computing profits

Making dollars and sense of Apple’s enormous share of mobile computing profits

Chris Umiastowski 5

For the last few years, industry pundits have been reporting on the surprising gap between Apple’s share of shipments compared to its share of profits. Investors care more about profits than market share. On Monday of this week, John Paczkowski of AllThingsD wrote another one of these stories, quoting a report from analyst Tavis McCourt of Raymond James. Tavis is a sell-side analyst...

September iPhone 5 release helps explain Apple’s weaker Q4 revenue and gross margin guidance

September iPhone 5 release helps explain Apple’s weaker Q4 revenue and gross margin guidance

Chris Umiastowski 9

Yesterday, iMore broke the news that Apple would be holding a special event on September 12th, with a release of the iPhone 5 on September 21st. Several other websites including AllThingsD, The Loop, The Verge, and most major news services have now reported on this too. I think this new information really helps to explain the financial guidance that Apple provided to Wall Street on...

Apple reports Q3 and Wall Street freaks out in another display of short term memory

Apple reports Q3 and Wall Street freaks out in another display of short term memory

Chris Umiastowski 10

Last night Apple reported Q3 fiscal 2012 earnings. If you look at some of the headlines floating around, you’d think Apple was in some kind of trouble. Phrases like “iPhone slump” and “big earnings miss” are being tossed around as if the sky is falling on Cupertino. What a joke. I think this just proves how short term Wall Street’s memory can be. And I’ll get to that in a bit. For...