Tuesday, June 10, 2008

How a little research...

... could have helped Ben Charney of Money CNN not look like a total arse.
Just how will Apple meet expectations? Using the patent application as a guide, Apple appears to be making room on the iPhone for flash memory, which means an end to Apple's standoff with Adobe (ADBE) that's kept iPhones from easily viewing a plethora of Internet videos.

Apple has said that Adobe's flash media player, which is on hundreds of other phones, doesn't perform up to Apple's standards for the iPhone.

Um... Ben? There is a substantial difference between Flash memory—a type of non-volatile storage—and Adobe Flash, the software platform used to deliver online videos.

In short, Ben, the iPhone has always used Flash memory (as has the iPod Touch, iPod Nano and that cute little memory stick that you plug into your PC's USB slot (stop me if I'm going too fast for you here)) but this is utterly irrelevant to whether or not it is able to run Adobe's Flash.

As Daring Fireball points out, Charney has form when it comes to talking bollocks about Flash (the software platform, not the memory), but maybe he could have extended this piece of crap into something a little more amusing?
So flash memory means support for Adobe Flash. Brilliant.

Update: Perhaps this flash memory will also allow for low-light flash photography with the iPhone’s camera?

Feel the sarcasm dripping from Master Gruber's keyboard there...

Anyway, it was the World Wide Developers Conference yesterday, so what have Apple delivered in terms of the iPhone?

Well, as expected, it's a 3G device with built in GPS, is now even thinner and has Microsoft Exchange integration; most importantly from your Jesus-phoneless Devil's perspective, it is being advertised on Apple's US site as being "half the price".

Now, whether the $199 price point actually translates—as the Beeb reports it will—into about £100 (I have my doubts), it is suddenly looking much more attractive. Well, the iPhone was always attractive, but it's now looking like a justifiable purchase.

Do I want one? Yes, yes, I do...

Still, some people are never happy are they? Here's an utter moron quoted by the BBC.
Analyst John Delaney said: "The fact it's cheaper is interesting. But how is it going to be cheaper?

"If Apple is doing it by cutting the retail price, it will drastically hit their margins; if they sell volume.

I'm wondering if, when the Beeb say "analyst", they actually mean "a rent-a-gob tramp that we happened to pick up a few blocks away"? Seriously, who is this moron?

It's quite obvious, John Delaney: Apple have cut their margins (plus, most of the R&D costs have been recouped through the early adopters). By cutting their margins, Apple can make the iPhone cheaper. If they make the iPhone cheaper, then more people will buy one. If Apple have got the price point right, then more people will buy an iPhone now than if they remained at $399 and Apple will make more money than they would have done at the higher price point.

Apple's research suggested that 56% of those who did not buy an iPhone made that decision because of the high price. I'd say that Jobvs and Co. have probably done their research on this one, John Delaney: now, why don't you go back and read Economics 101? Or, even better, read Eamonn Butler's Best Book On The Market, which has a whole (easy to read and comprehend) section on this very subject.

Seriously, where do they find these people?

DISCLAIMER: I own Apple shares.


Anonymous said...

For the real story, see www.thedailymash.co.uk

I won't attempt to insert a long url, just look for "APPLE TO FOOL PUBLIC FOR 207th TIME".

Mark Wadsworth said...

So what kind of memory does a proper iPod Classic have? None of this 'flash' nonsense, I hope.

PS, 'flash memory' is what haunts women who have been assaulted by dirty old men, IIRC.

Umbongo said...

For once, don't blame the BBC entirely although I suspect that a report sort-of implying that Apple - who, after all, make profits - were doing something underhand (now why would a greedy capitalist lower prices - it must be a con!) was not entirely unwelcome at the BBC. Delaney works for this outfit which is, apparently, well respected in its field. Mind you, Delaney's qualification is in physics rather than finance which might have something to do with this display of foolishness.

Budgie said...

All the tech cos introduce at high price for early adopters then lower the price to maximise the total return over the life cycle of the product. Delaney and the Beeb are really thick.

Devil's Kitchen said...

"So what kind of memory does a proper iPod Classic have?"

It's a small but standard hard drive.


Ewan Spence said...

Hmm, cutting $200 off the price (which will be in all likelyhood the subsidised price you pay AT&T) while AT&T add $10 a month for 24 months to the data plan. Which means the $399 original iPhone is now the $439 iPhone 3G (not counting voice minutes).

And this is a price cut? Sounds like a "no return to Boom and Bust"promise there!

Kay Tie said...

The "price cut" comes from allowing operator subsidies (which weren't there for the 2G iPhone). Apple have compensated the operators by foregoing the service revenue share, presumably hoping to make more money from the application store.

I didn't buy the 2G iPhone because of a high price AND a high tariff, being locked into O2, poor data speeds, no GPS, poor camera. The 3G package addresses some of those issues, probably enough to get me onboard (the mobile me.com in place of the truly awful .mac is icing on the cake).

Anonymous said...

It’s worse than that, isn’t it ?

Apple’s margin is their shipping price (not the retail price) minus their unit production cost. And the margin will increase, not decrease, with volume, as economies of scale lower the UPC.


Henry Crun said...

I used to work for a small marketing agency that specialised in online Flash based catalogues.

One of the technically indept directors had a hissy fit at us one morning after reading an article on flash memeory cards asking why we hadn't invested in this new flash technology because "it could damage this business irreparably".

Oh how we laughed behind the silly cunt's back.

Anonymous said...

Names are supposed to mean something; technology is just giving us too many collisions. A few years ago, when Iomega Zip drives were somewhat popular, my Dad never did quite understand that Zip drives had nothing to do with zip files. This was frustrating because he was more technically knowledgable than many computer users.

Edd said...

Just FYI: yeah, it will retail for £100 here. Even free with O2 plans worth £45 and up! :D

Tom said...

"Now, whether the $199 price point actually translates—as the Beeb reports it will—into about £100 (I have my doubts)"

Steve Jobs specifically said during the keynote that the price is not expected to exceed $199 (U.S.) in any of the countries where it's offered.

Oh, and for those complaining of the $10 rate hike in the U.S., the iPhone is on 3G now, and with third-party apps that will tax that system, all AT&T did was too charge it like a "true" smartphone. $30 a month is what, say, BlackBerry users have paid for quite some time. I'm sure you were expecting to move from EDGE to HSDPA for nothing but, alas, it doesn't usually work that way.

Alexis said...

oh my god that is ridiculous.

reminds me of when that UK news channel accidentally brought a cab driver (?recently arrived from Africa I think)into the studio and asked him about some tech stuff. Turned out he knew more than anyone else on the show (he was an out of work professor or some such).

here it is: