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The Critical Path #84: Blessed Are the Apps

A new theory of device-enabled presentations; the iTunes ARPU average revenue per user and its putative erosion; a definition of smart devices, the cycles of computing as a continuum.

via 5by5 | The Critical Path #84: Blessed Are the Apps.

  • Bill Esbenshade

    Horace — Great post as always! I liked your comments re simplifying the long term view of Apple’s value to ARPU times number of users times number of devices.

    I guess my long term concern re Apple’s value is whether Cook will be able to find the volume/margin mix needed to return Apple’s EPS to profitable growth. EPS for the trailing 12 months is flat/slightly down. What makes this trend surprising, at least to me, is that Apple released a bunch of great products in 2012. Their trailing free cash flow numbers look better — Apple’s recent CapEx hike is boosting their depreciation expense, which is obviously hurting short term earnings. The stock buyback will help with the EPS number.

    I’ll feel a lot better about Apple when its EPS starts trending up again! New products should help, especially a low-end iPhone, TV, etc.

  • http://www.twitter.com/dbkahn Dan Kahn

    Hey Horace,

    Just wanted to say thanks for addressing my questions from last week about Nokia’s low-end/almost smartphone. I definitely think this one will compete with Android in emerging markets and even has potential as an emergency backup/travel phone.

    Ben Thompson also wrote up some of his thoughts here:

    http://stratechery.com/2013/asha-to-asha/