{"id":7196,"date":"2012-09-17T13:05:06","date_gmt":"2012-09-17T07:35:06","guid":{"rendered":"http:\/\/www.greenworldinvestor.com\/?p=7196"},"modified":"2012-09-17T13:05:06","modified_gmt":"2012-09-17T07:35:06","slug":"apple-iphone-5-fails-to-impress-with-no-major-new-features-or-functions-still-a-great-short","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2012\/09\/17\/apple-iphone-5-fails-to-impress-with-no-major-new-features-or-functions-still-a-great-short\/","title":{"rendered":"Apple iPhone 5 Fails to Impress with no Major New Features or Functions \u2013 Still a Great Short"},"content":{"rendered":"

Apple’s iPhone 5<\/h1>\n

There was massive media hoopla over the announcement of Apple<\/strong>\u2019s new iPhone upgrade to iPhone 5<\/strong> with the global mass media going into hysteria and top news headlines even the Google news in India screaming about iPhone 5 reviews. However the iPhone 5 has not come out with any new feature that seems compelling enough. In fact after the radical new touchscreen technology, Apple has failed to come out with a game changing technology for the mobile phone space. The new features for the iPhone 5 over iPhone 4 released a year ago are:<\/p>\n

1. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Apple iPhone 5 adds fifth row of icons to home screen<\/p>\n

2. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Apple iPhone 5 weighs 20 percent lighter than iPhone 4S<\/p>\n

3. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Apple to distribute the new iPhone all over the world faster than ever<\/p>\n

4\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Apple iPhone 5 has same width but taller screen<\/p>\n

5\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Apple says new A6 chip is 2x faster CPU, 2x faster graphics.<\/p>\n

Though, I still think that Apple makes a great short at the current stock levels of $665.<\/p>\n

Why Apple is a short<\/a><\/p>\n

a) Sell Side and Buy Side Heavily Long<\/strong> \u2013 Almost all sell side analysts and there are tons of them, who are bullish on the stock. Hundreds of hedge funds and mutual funds are also long on Apple. Of the 50 sell side ratings, over 90% of the analysts have rated it a Buy.<\/p>\n

b) Competition<\/strong> \u2013 The competition in the technology industry is intense and can dramatically change the dynamics in a very short period of time. Look at how quickly companies like Palm, Motorola and others have been consolidated. There are numerous competitors of Apple that are continuously popping up in surprising places.<\/p>\n

c) Peak Margins<\/strong> \u2013 The prices of competitive phones and tablets are much lower and their features are rapidly converging with Apple products. The recent launch of the Google tablet and acquisition of Motorola by Google indicates that the Apple-Google<\/strong> war is heating up. Apple will have to decrease the prices of its products eventually to compete with other products. It has mostly saturated the market for premium products.<\/p>\n

d) Android is gaining marketshare rapidly in smartphones<\/strong> \u2013 Android is the most used smartphone operating system now and has gained marketshare rapidly. Being Free, is one of the most powerful competitive advantages it has.<\/p>\n

e) Patent Battles with Samsung, Google, HTC are not going to help<\/strong> \u2013 Apple is fighting a lone battle against the numerous companies in the \u201cAndroid group\u201d.\u00a0 At best it can hope for a stalemate.<\/p>\n

f) Valuation is rich<\/strong> \u2013 When measured in standard ratios like P\/E and P\/CF, Apple might not look expensive, but the stock is valued richly compared to normalized ratios.<\/p>\n

g) Steve Jobs is no longer there <\/strong>\u2013 Almost everyone agrees that the current management does not measure up to Steve Jobs. Its difficult to see how Apple can continue to roll out blockbuster products like the iPod, iPhone and iPad without the genius of Jobs.<\/p>\n

h) Size is an issue <\/strong>\u2013 The massive size of the company and all the ills it brings like bureaucracy etc. make it difficult for Apple to grow rapidly. The huge size of Apple makes it difficult for it to grow rapidly.<\/p>\n","protected":false},"excerpt":{"rendered":"

Apple’s iPhone 5 There was massive media hoopla over the announcement of Apple\u2019s new iPhone upgrade to iPhone 5 with the global mass media going into [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","content-type":"","footnotes":""},"categories":[61,70],"tags":[432,460,1302,3156,3648],"class_list":["post-7196","post","type-post","status-publish","format-standard","hentry","category-technology-sector","category-world-markets","tag-android","tag-apple-technology-stocks-technology","tag-cpu","tag-iphone-5","tag-mobile-phone"],"_links":{"self":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/7196","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/comments?post=7196"}],"version-history":[{"count":0,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/7196\/revisions"}],"wp:attachment":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media?parent=7196"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/categories?post=7196"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/tags?post=7196"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}