The iPhone 6 ripple effects reach far

I think they are missing some of the point.  Apple still holds a lot of marketing cache and its ecosystem of products protects it to some degree from others that bite at its heels or even leapfrog its innovations.   From an investment perspective Apple is clearly a more established company that generates healthy cash flows, holds big cash reserves and trades on a price-earnings multiple that is akin to a more mature business.  In of itself this suggests some investment appeal.   But putting Apple investors aside, the ramification of a (potentially) successful product launch from Apple has a serious ripple effect.   Australian electronics retailers and telco companies are also hanging on whether a new iPhone can stimulate sales.   Retailers like JB Hi Fi derive plenty of their revenue cake’s icing from new products such as iPhones. (Investors will remember that some of the recent disappointment in JB‘s results was due to disappointing tablet sales.    From the telco perspective I will hand over to Morgan Stanley which has concluded that the release of iPhone 6 will play to Telstra and against its smaller rivals Optus and Vodafone.  Morgan Stanley anticipates the new iPhone will add $500 million in revenues to Telstra.

So Telstra will benefit from this skew.   But there is a caveat - it assumes the pricing status quo between the three players remains neutral.   In recent months it has become pretty clear that the two smaller players are attempting to gain revenue share traction by undercutting voice/data packages.    Telstra still retains the lead in user satisfaction despite the fact that their pricing is recognised as more expensive.  Needless to say marketing departments around the globe - be they telcos’ retailers, financial services operators or Apple competitors - will be tuning in on September 9 to see the latest Apple unveiling.     They will be joined by the investment community - all of which will be rating the device and the stock price potential on the back of it. 2 RBA governor Glenn Stevens warns of housing bubble …

Read more here: SMH


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