from June 2014, iPhone
Some things in life are just inevitable. If you eat one potato chip when the entire bag is available, it is inevitable that you will eat more; if you drink often in bars and pubs and then drive home, it is inevitable you will someday get a DUI. If you are in Vegas and on a lucky streak, if you keep betting it is inevitable that the casino will win all its money back and then some.
Costco’s Mobile Online Store is offering iPhones and iPads with steep discounts. Below are a few screen captures of pricing deals found today. Earlier this month we broke the story about Costco selling iPhones and iPads in their club warehouses starting June 27th. However today Costco began offering Apple deals online.
The highly anticipated and much rumored iPhone 6 is likely launching in two models, one with a larger 4.7" display and the second with a gargantuan 5.5" tablet/phone size (AKA phablet). But is launching two large screen smartphones a good idea for Apple considering that just a bump to 4.7" display is upping their current 4" display area by 38%? Here's T-GAAP’s two divergent points of view.
Apple should not launch two NEW iPhones
If Apple launches a 4.7" iPhone 6 in the Fall, it will likely see the largest sales in the history of smartphones. The upgrade cycle for legacy iPhones has amassed to be largest ever. Apple need only deliver a few new features, such as a larger 4.7" display, and a massive upgrade cycle will happen.
This week T-Mobile is trying to change the mobile network game by giving anyone an iPhone 5s and a free 7-day test drive on their network. According to their press release, T-Mobile President and CEO John Legere stated that it is,
“A big day for wireless. An even bigger day for wireless customers.”
Legere goes on to say that T-Mobile’s mobile network is different than the other big three in the U.S. AT&T, Verizon and Sprint are all phone companies that moved into the mobile space. T-Mobile, Legere claims, is a mobile network company period. The distinction makes a difference because T-Mobile is built with the data user in mind, not just the voice user. Matter of fact voice is no longer analog, but digital, so it is data too. Legere claims this isn’t just “marketing B.S.” but a real difference that once people try they’ll understand. This difference also allows T-Mobile to give its customers far better data plans and rates than the other three.
Beginning June 27, iPhones and iPads will once again be sold through Costco Wholesale. Apple's strong march back into Costco means Samsung will no longer be going unchecked within the U.S.'s largest club wholesaler. Apple will soon be reconnected the club's higher income Americans, tp which Costco largely caters.
The average annual household income of each Costco membership is $96,000. The typical Costco member who purchases technology at the retailer is not part of the early adopter crowd. Rather, Costco members largely tie into what is called the "laggard" segment of the market, settling on whatever Costco is offering. This is a large high-income segment Apple has been missing for the past four years.
Yesterday Amazon's CEO, Jeff Bezos introduced the company’s first smartphone called fire Phone. Taking queues from the popular fire brand Amazon had built from their tablets, it seemed a logical extension of their tablet offering. The questions surrounding the fire Phone have largely been answered.
In 2010, Apple and Costco parted ways. At the same time Apple’s divorce with Costco was being completed, dealings with Walmart and Sam’s Club were heating up. Coincidence? We didn’t think so then, and now we don’t believe that's the case now. But rumor is, Apple and Costco are putting aside their differences in order to team up once again.
An email that's been circulating the past week is claimed to be from the Wireless Advocates CEO (Wireless Advocates owns the wireless kiosk contract at Costco), which states:
This year’s WWDC 14 keynote was a treasure trove for developers. From an all new coding environment to a bounty of new API’s, and even an improved iCloud architecture to leverage — the show was pure developer candy. Apple also gave consumers something to look forward to coming this Fall. Apple’s Sr. VP of Software Engineering, Craig Federighi, delivered iOS 8 Extensibility. For users of Apple’s mobile devices iOS 8 Extensibility is going to be a very big deal.
A two hour Keynote by Apple at WWDC 14,... and no new hardware. To some this was a big disappointment. Wall Street reacted (as they always do) by sending AAPL stock down on Monday, but on Tuesday they had reconsidered and sent Apple’s stock to another 52-week high. Along with Wall Street others had eagerly anticipated at least a new iPhone or were hoping for something else, something big — like a new category product (iWatch or a new form-factor Apple TV). But a new hardware announcement did not happen, and there are some good reasons why.