Blog

The End of Apple Has Begun

– Originally by Forbes

 

The End of Apple

The End of Apple

© 2019 BLOOMBERG FINANCE LP

When Apple CEO Tim Cook took the stage this September, nobody expected the shocking news he was about to deliver…

He unveiled the new iPhone 11—the most advanced phone Apple has ever made.

But it was not the triple-lens camera and lustrous finishes that stole the show. It was the phone’s price tag.

For the first time ever, Apple cut its iPhone price.

As I’ll explain, Apple made this move out of desperation… and it may well spell the beginning of the end of Apple’s run as a dominant company.

Apple Is a Phone Company

Let’s get one thing straight…

Apple is not a computer company anymore.

Apple is a phone company.

Since it introduced the iPhone in 2007, Apple has sold 2.2 billion phones raking in over a trillion dollars in sales—more than any other phone maker in history. Meanwhile, Apple stock shot up over 2,037%… and became the world’s largest publicly traded company.

RiskHedge

RISKHEDGE

iPhone Is Apple’s Golden Goose

Apple has earned a whopping $1.99 trillion since 2007. The thing is, more than half of it came from iPhone sales.

iPhone is not only Apple’s best-selling product by far. It’s also the company’s most profitable product.

For every dollar an iPhone brings into the company, Apple earns $0.60–0.74, according to PhoneArena. Compare that to the MacBook Air… Apple’s most profitable notebook…which earns a mere $0.29 on the dollar.

If it weren’t for the iPhone, Apple wouldn’t be where it is today. Without the iPhone, Apple would be a mediocre computer company like Dell at best.

iPhone Sales Stalled Out

For years, iPhone revenues have sprinted higher at an exponential pace.

But in 2015, Apple reached an inflection point. The growth of its iPhone sales has died out, as you can see below…

RiskHedge

RISKHEDGE

Last year, Apple sold 14 million fewer phones than it did three years ago.

That’s not unusual, though.

When Apple unveiled the first iPhone, the smartphone was groundbreaking technology. The typical lifecycle of a groundbreaking technology looks like this:

Sales skyrocket out of the gate… then flatten out as the market matures… and finally take an inevitable downturn.

Twelve years ago, only 120 million people had a cell phone. Today, over five billion people own a smartphone, according to IDC.

Apple Found a Way to Extend the iPhone Lifecycle

As I wrote earlier, Apple has found a masterful way to extend iPhone’s prime time. The company raised iPhone prices to offset slowing sales and keep its revenue figures growing.

Think about it… In 2010, you could buy a brand-new iPhone 4 for $599.

In 2017, you would have had to fork over $849 for the iPhone 8 and $1,149 for the iPhone X… Apple’s most expensive phone.

The price hikes kept Apple’s growth engine alive… and for this reason, its revenues have gone on marching higher since 2011.

But there was also another reason Apple was forced to hike its phone prices…

iPhones Are More Expensive for Apple, Too

Take a close look at the chart below. It shows how much it costs for Apple to make an iPhone…

RiskHedge

RISKHEDGE

With the exception of a few years, the cost of making an iPhone has been climbing higher since 2007.

The first iPhone cost Apple just above $200 to make. Meanwhile, iPhone XS (the latest iPhone Apple reported on) costs double that.

Apple has always set records with its phone prices. But as you can see, it did it for a reason. It had to offset the ever-growing costs.

But as I warned my readers before, it was just a matter of time before Apple had to pull back with its pricing.

It didn’t take long….

iPhone Has a New Feature: Lower Prices

Last September, Apple unveiled iPhone XR, a less advanced and more affordable version of the iPhone X.

It cost $749, a 35% drop from the iPhone X’s $1,145 price tag.

But in truth, it was almost the same iPhone X, only disguised as a budget phone. It was basically an excuse for Apple to release a cheaper phone to get its sales figures back on track.

This year, Apple went a step further. It slashed the price of its full-fledged iPhone. The newly released iPhone 11 started at $699, a price point not seen since 2017.

Apple did it as a last resort to spur lackluster demand. But in doing so, it has signaled the beginning of the end of its lucrative iPhone business.

The End of Apple

See what’s happening?

Not only is Apple selling fewer iPhones, it’s now earning much less on each one.

Recent financial reports show that iPhone revenues… which have been Apple’s lifeblood… are starting to sink.

Last quarter, Apple earned 10% less from iPhones than it did during the same period last year. That’s a loss of about $20 billion!

Apple has never earned so little from iPhones… and all this will start showing up in Apple’s financial reports very soon.

Let me make it clear: half of Apple’s business is going off the rails, and there’s no turning back.

While Apple admits the demise of iPhone and is looking into new business directions, these things don’t happen overnight. Meanwhile, Apple’s money-making machine is grinding to a halt.

As I warned you earlier this year, Apple is a ticking time bomb… and for this reason, I’d recommend staying away from this stock.

AMD fails to win me over with the new Ryzen CPU lineup

In a world where the Raspberry Pi complete with case, mouse, and keyboard is $120, and functions as a full desktop, the day of Core i7, i9, and Ryzen Zen2 and + seem to be needing a huge boost nowadays. 7nm seemed to be the answer.

At first, I assumed the hype train was way too big. Intel has been struggling with the 10nm process, and hadn’t exactly made it public just after releasing it’s 14nm architecture, which as of now, is still the current rendition. The Core series as well as Pentium, and Celeron are currently in 9th gen, with 10th gen slated for late 2019 early 2020.

However the current ‘main contender’ of the Intel CPU lineup is the i9-9900k. For $100 more than a i7-9700k with HALF the usable threads (8 vs i9’s 16) you can own a CPU, that runs at 5.0 Ghz out of the box with single core Turbo Frequency, which we all know runs exceedingly well when needed. After all, 80% of our software still uses a single core for most operations. And we all know the average consumer, or even power users rarely need the multi-core support other than for simple multitasking (which my Dual Core i5-5 series from 2015 does just fine).

AMD as of July 7th of 2019 has released some of the mainstream $99-$499 CPUs intent on proving dominance with the 7nm process, as well as hopefully finally achieving some type of true repuation from the many years of bad AMD taste in people’s mouths from the branding and ‘other’ issues (TLB Glitch anyone?, yes I was a Phenom user).

And I have to add, the thermal designs and the power usage with going to 7nm was underwhelming at best. We still see large power draw, and hot devices.

These CPUs underwhelm. They absolutely seem to dominate when you get to a number of cores no one needs yet. 8-12 simultaneous core scores do great, but a Core i5 for $200 would do better in 90% of situations, unless you are rendering video or multitasking to the extreme (think 3 browsers open with 10 tabs each on 4 monitors running 4k extreme). I have to add, the thermal designs and the power usage with going to 7nm was underwhelming at best. We still see large power draw, and hot devices.

So for 24 thread performance, simply put, you should get last years threadripper for $600. For single core, the i9-9900k is $450 on eBay new from a reputable seller. If you want to do things well, your RAM, SSD, and software optimizations will matter more than cores, really.

And when it boils down to it, the i9-9900k still beats out every CPU with the 5 Ghz single clock in REAL WORLD PERFORMANCE. Benchmarks may look nice, but this is Intel’s LAST GEN CPU in a few months possible, and comet lake, ice lake, whatever will bring a whole new set of benchmarks, although admittedly, I may not be impressed by this as much either.

Why hasn’t anyone done something about Yelp, the new Ripoff Report?

Yelp-Review-Removal-Fake-Reviews-ScamYelp, an online review site that ‘doesn’t allow businesses to pay to remove reviews’, and has turned into RipOff Report, a site used as a weapon to harm consumers. Yelp is a review site in the same way McDonalds is healthy for using fresh ingredients.

I don’t know how it all started, but as anyone with a brain would know, a review site that doesn’t remove fake reviews, is not a review site, it’s just a place to go to see local businesses, at best. To make a review site, you need a moderator, and some type of (at least verbal) arbitration process designed to help businesses promote themselves on Yelp, not lose customers over it.

It seems that Yelp does not understand this basic give and take strategy, and as a result, phony sites that promote Reputation Management leave fake reviews to sell you the ability to remove them. Ex-employees complain they got fired, and overall the level of libel and defamation is much higher than that of the well known Google reviews.

Honestly, Google was in the same boat, until Google started actually looking at the reviews where only ONE was left in 3 years by the inactive account, and started removing them. They also do not block 5 star reviews in an effort to harm the business as Yelp does.

Thankfully, due to people like me, bigger and smaller blogs, Yelp is losing traction. Trusting Yelp is trusting the opposite of gut instinct. Many a time you’ll be surprised to see a negatively rated business, and possibly reach out to this business, and find it’s perfectly fine.

I found myself in this predicament numerous times. As someone who is paid to remove Yelp from the homepage of Google searches, I decided to look into the reviews to see if I was helping bad businesses look good, or good businesses retain their true image. I found the latter, and that’s unfortunate, as people are paying me to just hold onto their customers, much less gain new ones like they used to. They have 4.7, 4.8 ratings on 3 different websites. 1 star on Yelp with 23 reviews (20 were ‘not recommended?’) which goes to show they have no credibility.

What can we do about Yelp? For one, we can bring attention to the fake accounts. If you see an account with one review, no picture, and it contradicts other reviews, you’re probably looking at a fake Yelp review. Not to mention if the person doesn’t even describe the situation reasonably (leaving a review about a burger they ate, when the establishment is a Chinese food place) it still gets posted as if it has credibility.

Yelp has to go. One day at a time, we have to take them down.

First post. Let’s Google stuff.

The first post ever on your WordPress blog is by default is the current one (Hello World!) which is probably horrible for SEO, but suits my needs really well, as all I want to do with this post is introduce myself, to the world.

I’m 33 year old techie who is entirely self taught. I wanted to go to college, but I felt it would slow down the creative process, because I wanted to learn much more than any one person could sit with me and teach.

I consumed every book I could on the topic, and began charging the bare minimum to practice. I did fairly well at the beginning, but then something happened that had never happened before. I got hit with a wall in the middle, called real life. Real life technology quickly revealed itself to be much more simultaneously complex and fragile than I had ever imagined.

People had problems that none of the books had answers to. Search engines didn’t exist (initially) and when they did, the answers didn’t really start to get easy to find until 2012!

Over almost 20 years from building machines, to programming them, I’ve picked up a lot more than anyone I’ve seen, and can do much more than many that I know. I am in a league of my own with actual reputation management, for example, with 20 customers erased from Google, and happy about it.

But I feel it’s time to give away most of that knowledge, so I want to start this blog to get people interested in managing their own sites, servers, and more. Maybe start a blog, or get a business online, all for $60 a year because you can do it yourself!

See you soon

  • Sean