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February 04, 2013


From the article: "In the fourth quarter of 2012 when the full-blown sale of the iPhone 5 kicked in, Verizon Wireless and AT&T, the two major US mobile carriers, saw their fourth-quarter net loss widen to 4.2 billion US and 3.86 billion US, respectively."

Both Verizon and AT&T reported that their loss increased due to Hurricane Sandy, and Pension Costs. The statement above insinuates that it was due to selling more iPhones, and fails to mention the statements issued by the companies, regarding why their loss increased in the 4th quarter of 2012. Without the hit on earnings due to Hurricane Sandy, and Pension Costs issues, both company would have made a profit.



Profits don't mean anything to Wall Street when it comes to smartphones. Only having major market share matters. They've made sure that Apple can't win because only Android can have major global market share due to the lower cost of the entering the platform for both companies and consumers. The whole goal of Google's Android was to capture major market share by putting Android OS on as many devices as possible. Apple's goal with iOS was to put iPhones into as many consumers' hands who were willing to pay a higher price for a higher quality device and have the best experience possible. That goal in itself would not allow major global market share. It's like comparing Toyota with BMW and expecting BMW to sell as many vehicles globally as Toyota in BRIC nations. That's completely unreasonable and I think it would be insulting to tell BMW to just build cheaper vehicles and lower their standards to gain market share.

It's Wall Street that has decided a low-cost platform is worth more in value and has a better chance of long-term survival. They've decided that iOS has no future and that everyone will decide to use Android due to its low cost. Wall Street is basically saying that only Android will survive and iOS will die. That's seems like a pretty far-fetched assumption. I honestly don't understand why Wall Street is trying to undermine Apple, an American company to boost Samsung, a S. Korean company. Such a decision really seems anti-American.

Hedge funds are only in it for the quick money and don't really care about companies, per se. They're not real investors, but money movers.

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