October 2009
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Day October 20, 2009

Peugeot Renault and Citroen

I’m trying explain the complete lack of interest in Nokia among the US blogging/early adopter audience. If you are an enthusiast, why do you not care about the market leader. The automotive analogy is not quite perfect, but there are brands that are just invisible to the community even though they are quite popular and significant.

The French have a pretty crap reputation and it’s not entirely undeserved, however what’s worse than being talked about badly is not being talked about.


You Can’t Touch This

Apple’s Q4 2009 conference call revealed that iPod touch sales were up 100% year over year. For the full fiscal year, iPhone grew 78%.


Tim "Corleone" Cook

When asked more pointedly, “So when you go from exclusive to multiple, you don’t change the charge to the carrier?” Cook answered, “Correct.”

Apple has more pricing power than the Don.


iPhone Money Trail

Peter Oppenheimer, Apple’s Chief Financial Officer, said that the Average Selling Price of iPhones in the quarter “was just over $600. This reflects both high mix of 3GS sellthrough and benefits of rebalancing the ending channel inventory toward the 3GS.”

An astonishing admission from Apple who has never revealed their iPhone ASP. Previous analyst estimates had the iPhone ASP at $550. If this is true, then Apple has violated one of the cardinal mobile industry rules: “Thy ASP shall always erode”. Given what is known about the components, iPhone gross margin is likely to be above 50%. The gross margin, or what you are able to capture in value above the bill of materials, isthe primary indicator of value creation in the device business. Apple’s number is astronomical vis-a-vis the competition. Stay tuned as this gets scrutiny.