Really? iPhone will trigger billion-dollar loss?
Apparently trying to secure a Jackass of the Week nomination from Daring Fireball, Ary Daquiwag of Stock Market Opinion & Analysis site SeekingAlpha says the introduction of the iPhone might trigger a billion dollar loss for Apple because it will eat away at the sales of all existing iPod models.
What is going to happen to iPod sales (i.e., iPod Nano, video and the micromini version)? These Apple products will probably become irrelevant to a big chunk of Apple’s target iPhone market upon its release.
If Apple’s target iPhone market is the same as its target micromini iPod market, then I guess there might be a problem. But getting beyond the fact that Daquiwag doesn’t know the name of the iPod shuffle, he doesn’t seem to understand the differences between the devices. The regular iPod with video capabilities has 30-80GB storage capacity compared to the iPhone’s 4-8GB. Are those who need tens of gigabytes of space really going to find the iPhone capacious enough? As for the Nano, the small size of the device itself is a major draw and the iPhone is much larger (it’s pretty easy to tell, since the iPhone publicity photo includes a hand). The biggest disparity exists between the Shuffle and the iPhone. Does Daquiwag truly believe that those who like jogging or exercising with the Shuffle will find the iPhone a suitable replacement?
But the worst part may be the advice to Apple to solve this impending crisis: make the iPhone more expensive than iPods.
Apple could take the path of letting the iPhone be a high end product by making its price high and letting the iPods become a cheaper option.
Wow, Apple could make the price of the iPhone high and the price of its iPods cheaper! Can you imagine such a world?! Let’s see, how about the price of the iPhone being $499-$599 and the price of the iPods $79-$249. (Note to SeekingAlpha: that’s what they currently are…)
That’s not enough, you say? You want more ridiculous advice? How about this:
Or Apple could just go for the easy way out by selling all the necessary rights and production facilities of its iPods and focusing more on the production and promotions of its iPhone and its other products, which are not direct competitors of the iPhone.
Right… the “easy way out.” Well, you heard him Apple, better start selling those Chinese production facilities and let someone else make iPods.
The iPhone Effect: What Will Happen to Apple’s Other Products?
#1 Simon Dick says:Hahaha,
“Or Apple could just go for the easy way out by selling all the necessary rights and production facilities of its iPods and focusing more on the production and promotions of its iPhone and its other products, which are not direct competitors of the iPhone.”
He just stated that it’s not a competitor to the iPods! Thus dubunking his OWN theory!!!!
#2 raj says:“Does Daquiwag truly believe that those who like jogging or exercising with the Shuffle will find the iPhone a suitable replacement?”
They might, actually. You should be taking a phone with you when jogging anyway, so why take two devices when one iPhone will suffice?
#3 joecab says:My biggest question is how much profit Apple makes on say the $499 iPhone compared to a 8gb iPod nano. Or would a 30gb iPod be a better comparison?
#4 Mantiz says:Having a mobile phone that can play music doesn’t mean you don’t need an mp3 player. People have had music players in their phones for years and still buy shuffles.
I prefer keeping the small and compact player in my pocket and the big phone in my bag, having headphone cables tangled around the straps of my bag pulling on my ears while biking so that i can listen from my phone isn’t the best solution either.
So no, it will make a small difference for the people who like a big screen but don’t need that much hd space, but not enough to make the iPod obsolete or anything.
#5 Julio says:Seeking what? Don’t go to seek nothing. People will end up buying both the iPod and the iPhone.
#6 KingKong says:I can’t help myself not to comment on this one. I am just surprised that you debunked your own theory. Can’t you make up your mind? Your marketing strategy is ridiculous. It has no place in any marketing dogma known to man. Get your facts straight. You are like a monkey, sir/miss Ary Daquiwag. You second guess your thoughts and debunk them altogether. Are you trying to be funny like a monkey? Your name ary rhymes with monkey. Ary the monkey.
#7 KingKong says:I saw the parents of ary daquiwag. They were here. They were pissed off so much and nobody can blame them. Your strategy on the matter are ridiculous and silly. It is not marketing but craziness and stupid. Why dont you take the easy way out?
#8 Yagbols says:Oh really KingKong? Pls don’t make tactless comments… Ary the Monkey? Hey don’t try to be a smart ass here. If you just want to right something, then don’t. The topic here is the iPhone and not the name of the author. I think the author is just expressing his own opinion and everyone is entitled to that right.
BTW, in case you don’t know, King Kong is an ape… in my humble opinion, an APE is related to a MONKEY…hmm..
#9 Yagbols says:“If you just want to right something..” - I mean write, sorry for the typo error…
#10 AnitoKid says:I’m with you Yagbols! Hey KingKong! Try writing an article, even just one. Believe you me, I’ll be waiting and will refute all that you say - I will tear your views and takes piece by piece. Just like you - a sorry and poor excuse of a human being. And I kid you not!