Originally Posted by chhansen
I have seen products with that half bitten apple logo on them in the following stores during these past few months. Costco, Walmart, Target, Best Buy, Frys (they even had the new mac book pro although they were sold out so there was a wait list. the point is they had the new mac book pro with retina.). Assuming that Sams Club has them too since it's owned by Walmart (no local Sam's Clubs here). This list is at least 75% of the total retail space for tech products in the US. On a side note, competitors don't drive down the prices because they know that people are willing to spend full retail on Apple products anyways. On a side note, Best Buy frequently discounts macbooks for $50-$100 and ipods/ipads at Costco are always $5 lower (lol, $5 can buy you some nice CMG).
Well this I agree with only because Apple is already bigger than Google and IS making fistfuls of money with Google having a different role. In fact, Apple is bigger than Google and Microsoft combined in terms of market cap. Heck you can even add in S, RIMM, NOK and Apple is still bigger than all of them combined.
Disclaimer: Long AAPL in my long term account but I short AAPL all the time in the my trading account.
1. the iphone was built upon existing technology. icloud is too, what is your point? Apple knows how to put it together and create value
2. apple is very exclusive on its product distribution. You can get some things like ipods and the iphone, but not EVERYTHING. Not just anyone can wholesale apple products, like you can do with a Wintel computer. Otherwise people would flood apple products on ebay and drive down the cost. Yes, people sell apple products on ebay but they were bought quite expensively from the apple store and such. The resale value is quite high on apple, believe me, I tried to wholesale and drop ship apple stuff, there are nosuppliers who can do that to the little guy . It is so hard, even insiders in china try to do it, and they might steal product from the factories of other namebrands, but Apple is notoriously difficult. I own several eccomerce sites and I can get you acer, dell, even alienware. But I cannot get you apple laptops brand new. It's impossible unless you are a huge company and you beg and plead with apple, and cut down your margins significantly. Yes Best Buy and Walmart sells ipods and the base macbooks, they have less bargaining power I bet you. They are not making much money than compared to selling a wintel laptop.
summary: Most of the profit is made by apple and less from the middle man
3. I don't think you get what i am saying when I say "digital hub" or wide economic moat.
4. I hope I explained things a little better, if not, i'll try again
Summary: a wonderful company will always lead to a wonderful result in the long run. I don't really care about price with apple. Every year, a company's economic moat gets wider or narrower, once I see Apple's competitive advantage dissapears I will sell. But I plan on holding as long as Apple continues to be Applish, lol
Edited by epoch707 - 6/26/12 at 2:54pm