iPhone8 and X high margins and still love of Apple

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I sure do love and dislike Apple at the same time. Their iPhone is a work of art. This includes their user interface and general mechanical design. It's quite amazing what they put it in the phone. Having done hardware, software, and interface design it's really impressive. If you include the manufacturing process required in the thousands of production lines? needed to make the various components and devices it is unbelievably impressive.  Thing of beauty.

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However, I still have the dislike part. The dislike is not enough for me to change from Apple but it is there. When I see the amount of cash, they have in the bank and the margins they get on their phones it bugs me a little bit. I don't hold it against them, everybody is in business to make money, but they make so much of it. Other companies, even very successful ones, generally don't make this kind of cash. I guess the reason why it bothers me is that of having to pay a lot more than I should be for the product.  But I pay.  The iPhone is beautiful.

 

Amazon doesn’t have a phone currently, but most of their similar products are priced at a reasonable value for what’s in the product. I appreciate that Amazon continually lowers costs and thus the prices of their electronic products. This is true for their store and their AWS cloud services as well. This makes them more competitive and resilient because they are very efficient and not locked into high fixed prices.

 

I worry Apple is too dependent on these margins in order to continue to succeed. I also wonder what they could be doing with the money in the bank regarding other products and innovations. As an Apple fanboy, I'm still waiting really for something new. I don't count to Apple Watch and the iPad.  They are awesome but not innovative as they are the continuation of the iPhone. They need a new different product area.  AI is one such area, but they are way late to that game even though there were early with Siri but it's languished.

 

I still love Apple.

 


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