Thomas H. Kee Jr., giving investment advice at MarketWatch:
In the case of Apple, this is happening in front of our eyes, and
the risks are therefore very high. Apple has stopped serving their
customers well, and unless they start to serve their customers
better the company will begin to lose more market share and
revenue and earnings projections will come down aggressively.
Most people think Apple’s customers are the end user, but because
Apple relies so heavily on third-party resellers like Verizon and
Sprint, both of which are feeling margin contraction and negative
effects on earnings because of the extremely high cost of iPhones,
the real customers are third-party resellers, and Apple is not
treating them right. As long as margins and earnings are
negatively affected by sales of Apple’s products, those resellers
will look for alternatives and eventually they will find them.
Nothing could be clearer.
Let me get this straight. Apple entered the phone business five years ago with a strategy completely different than any other handset maker: treating the user as the customer, rather than the carriers. With this strategy, Apple has now captured two-thirds of the profit in the worldwide handset market. And but now, according to Kee, what Apple should do is start acting like all the other handset makers.
Where do they find these guys?
★ Wednesday, 18 January 2012