Apple Inc. (NASDAQ:AAPL) week in review according to Goldman Sachs.
Apple Inc. (NASDAQ:AAPL) looking at bigger iPhone screens, multiple colours – sources (Reuters, June 13, 2013)
Summary: Reuters reports that Apple is exploring launching iPhones with larger screens as well as cheaper models in a range of colors over the next year, according to four people with knowledge of the matter. Sources say that Apple is considering at least two bigger iPhones next year—a 4.7-inch screen and a 5.7-inch screen. For this year, Apple is expected to launch what is widely referred to as the iPhone 5S with new fingerprint technology and a cheaper version in a plastic casing with 5-6 colors. The company has discussed a price of $99 for the cheaper phone, though this has not been finalized and the timing could still slip to next year, according to one of the people. Nevertheless, other sources say that trial production for the standard and cheaper iPhone model aims to start next month to meet a September launch target.
Goldman’s take: We continue to believe that Apple will introduce a refreshed iPhone and a low cost model this fall, the timing of which would coincide with the release of iOS which was introduced this week. We would be very encouraged with a larger-screen version of the iPhone, but since that is unlikely until deep into 2014, it is difficult to judge the success of such a product at this point.
Apple Inc. (NASDAQ:AAPL) to kick off in-store iPhone trade-in deals to spur sales (Computerworld, June 7, 2013)
Summary:Apple Inc. (NASDAQ:AAPL) will launch its own iPhone trade-in program this month, according to Bloomberg. Citing unnamed sources, the program will allow consumers to exchange used iPhones at Apple Inc. (NASDAQ:AAPL)’s retail stores, and the phones will then be resold in developing markets by Miami-based Brightstar, a buyback firm that has partnerships with scores of retailers and carriers. While the report did not say whether Apple will offer cash or an in-house credit, Computerworld observed that the company’s existing online repurchase program exchanges iPhones for Apple gift cards.
Goldman’s take: We believe Apple’s expanded buyback program is intended to spur the upgrade cycle, particularly in mature markets, while stimulating growth in emerging markets. In the developed markets, customers facing stiff penalties from carriers for early upgrades could use the trade-in program to minimize incremental costs; and in the emerging markets, used iPhones could be used to capture sales in cost-sensitive segments of the market.
Question: Ahead of iPhone launch in 2007, Apple Inc. (NASDAQ:AAPL) was embroiled in a legal fight for use of the name because Cisco already had an Internet phone on the market with the same name. What was the leading backup name that Apple was considering for the smartphone?
Answer: Tripod.
The name “Tripod” was a favorite at Apple as it highlighted the three features—a music player, a phone and the Internet—that would be emphasized in the smartphone’s initial marketing campaign. While Apple was ultimately able to reach a deal with Cisco that allowed both companies to use the name iPhone, other names being considered at the time were Mobi (a play on “mobile”), Telepod (which highlighted the iPod-telephone combination, and iPad (which had yet to be used for the current tablet computer).
