The Critical Path #84: Blessed Are the Apps
by Horace Dediu
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.
by Horace Dediu
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.
2 comments
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.
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/