Old Components and High Margins vs New Technology and Low Margins
Apple’s (AAPL) new $329 iPad continues down the same road that the iPhone SE blazed last year. They’re both parts-bin specials that assemble components from previous or newer devices to give Apple a budget-priced foothold.
Discount Merchandise or American Jobs? Pick Only One
The Wall Street Journal is reporting that Tim Cook is defending the globalization of Apple.
I’ve written about this before and as unpopular as it may be, Tim Cook is right.
Freight Is the New Labor: Why Apple Manufactures in China
Bloomberg Tech is reporting:
Now, the world’s largest paid video service is devoting more attention to motion pictures, looking to shake up that business just as it has TV. “Bright,” with a $90 million budget, is one of about 30 original films Netflix will release this year, from micro-budget pictures made by independent producers to lavish Hollywood productions. That’s a bigger slate than most major studios. --Lucas Shaw
In two years, if their bid in movies is successful, a $60 billion price tag for Netflix is going to look cheap.
Writing for BuzzFeed, Mike Giglio talks about how ISIS is furiously using all means at their disposal to wage fierce war. One of those resources is using drones to drop bombs on the US-led coalition.
The Consequences of Size
The very first Apple product that I ever purchased was the 3rd generation iPod Touch introduced in the fall of 2009. I bought it specifically to store my music when I went to the gym or out for a run, but I was blown away with how much more capable it was compared to the Creative Zen mp3 players I had been using prior. Despite how great it was, I disliked having to carry a flip-phone in one pocket and an iPod in the other. One of them had to go.
Technology as Destroyer of Mankind?
The more I see and hear artificial intelligence discussed in a future context, the more I hear echoes of the biblical story of the great flood. Some use this account to dismiss the God of the Bible, Elohim, because it seems so extreme. Many are quick to throw accusations at Elohim such as how could a good god allow pain and suffering in the world or how could a good god allow mass genocide by wiping out mankind with a flood. This flood accusation I find particularly interesting, because the more we start to discuss the future power of artificial intelligence (AI), the more relevant it becomes.
CFO Departures Are…Odd
It’s interesting that Tesla’s CFO had an abrupt departure from the company just before the quarterly earnings were announced.
More than any other function within a company, the Accounting and Finance group has accountability to the board of directors. The CFO is hired by the CEO and reports to him, but he works for the board of directors as well. As such, the accountants have a fiduciary responsibility to adhere to generally accepted accounting principles whether the CEO agrees with them or not.
That Which Was Not Possible, Now Is
One of the reasons I love my 9.7" iPad Pro is because it can do things better than either my iPhone 7 Plus or my MacBook Pro. One of those “things” debuted with the original iPad but can be further improved. That would be reading books.
The Liberal Media Is a Disgrace
When the Russians hacked the DNC I said that it didn’t matter where the info came from because it didn’t change the nature of how the DNC conspired against Bernie Sanders. And when the leaks showed that Mike Flynn lied about speaking with his Russian counterpart I had the same attitude. Leaks or not, Trump had to let him go.
I didn’t understand the doom-and-gloom last January. As growth funds started selling their positions in Apple (AAPL) when it became evident that the iPhone had suffered its first ever decline, writers were freaking out as if Apple stock was on a long ride to zero. They totally ignored the fact that Apple had a steady business, high margins, and a good management team. Their pessimism didn’t make any sense.
Manufacturing and distribution analysis since 1993.