MacDirectory Magazine

Warren Manser

MacDirectory magazine is the premiere creative lifestyle magazine for Apple enthusiasts featuring interviews, in-depth tech reviews, Apple news, insights, latest Apple patents, apps, market analysis, entertainment and more.

Issue link:

Contents of this Issue


Page 35 of 115

COMMENTARY IOS PORTFOLIO PRICE DISTRIBUTION WORDS BY HORACE DEDIU, APPLE ANALYST REPRINTED WITH PERMISSION FROM ASYMCO.COM With the iPad mini launch imminent, it's time to think about the expanding iOS portfolio. We don't know how much the "mini" will cost or what variants will be available but I took some rumors as a basis to form a hypothesis. The idea is that there will be 24 variants which have three dimensions: • 2 colors • 4 capacities • 3 radio chipsets The starting point would be $250 for an 8 Gb WiFi only model and increases of $100 for each doubling of capacity and $130 for the addition of cellular chipsets. The results would slot into an increasingly broad price spectrum. I included all the models of iPod touch, iPhone and iPad that we already have available and built the following graph. budget a year before it's spent.) and therefore it becomes possible to get a rough idea of how much they will produce. And since demand has generally been higher than supply we can get an estimate of how much Apple will sell. The only missing piece to this logic chain is to estimate how much will shareholders benefit from the capital expenditure. I'll try to establish the relationship through a build-out of graphs. The first graph shows Apple's share price at weekly resolution. Using Capital Expenditures to predict Apple's share price It takes money to make money. That's a cliché. But it's also true. The interesting question is how much can be gained from how little. In previous articles I explained how Apple's expenditures of capital for equipment used in manufacturing affects their output of products. The relationship between capital in and product out should stand to reason. The more surprising aspect of that analysis is that we get to know in advance how much Apple spends (since they tell us their 34 MacDirectory

Articles in this issue

Links on this page

Archives of this issue

view archives of MacDirectory Magazine - Warren Manser