It’s Not Just Amazon’s Fault

By Vitaliy Katsenelson, CFA – Re-Blogged From http://contrarianedge.com

Retail stocks have been annihilated recently, despite the economy eking out growth. The fundamentals of the retail business look horrible: Sales are stagnating and profitability is getting worse with every passing quarter.
 
Jeff Bezos and Amazon get most of the credit, but this credit is misplaced. Today, online sales represent only 8.5 percent of total retail sales. Amazon, at $80 billion in sales, accounts only for 1.5 percent of total U.S. retail sales, which at the end of 2016 were around $5.5 trillion. Though it is human nature to look for the simplest explanation, in truth, the confluence of a half-dozen unrelated developments is responsible for weak retail sales.

Apple must show what’s next after iPhone X

By Vitaliy Katsenelson – Re-Blogged From http://contrarianedge.com

The iPhone X is likely to be a phenomenal success for Apple. But its success will not be driven by anything new that the new phone packs inside. Instead, its success will be based on the phone’s screen size. Essentially, iPhone X provides the same screen real-estate as an iPhone Plus, but with the sleeker form factor of the iPhone 7 or 8.

Apple has done a great job at changing the paradigm of our thinking about the iPhone. If you only care about making phone calls, then an iPhone 4 is good enough. Why pay for more? You probably don’t even need to upgrade your phone for years, as long as the battery keeps holding its charge. However, for most, the actual “phone” function is the least important of the iPhone.

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Apple Admits They Throttled #iPhones

By Anthony Watts – Re-Blogged From http://www.WattsUpWithThat.com

While this isn’t our normal fare here, the Internet is abuzz today over the admission from Apple Inc. that they purposely slowed down older iPhones, and I have something VERY interesting to add. Business insider has this headline:

Apple confirmed a longtime conspiracy theory — and gave regular customers a big reason to distrust it

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The End Is Near (Part 8): Apple’s Revenue ‘Falls Off A Cliff’

By John Rubino – Re-Blogged From http://www.Silver-Phoenix500.com

One by one the pillars of the recovery are toppling. Last year the Chinese infrastructure party ended and the shale oil boom went bust. More recently the FANG stocks went from pulling the market up to pushing it down. And today Apple — whose sales would always go up because everyone on Earth wants an iPhone and there were still some people in Africa and the Amazon Basin who don’t yet have one — reported that not only is its revenue no longer growing, but it might shrink in the year ahead.

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