This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Technology Rumor of the Day: Apple

"Sequels that copy the original look of the first-generation model too slavishly, tend to have short life spans in the phone business," says Global Crown Research analyst Tero Kuittinen. As the Razr showed, "this cookie cutter strategy ended up backfiring spectacularly," he added.

Granted, unlike the Razr, Apple's iPhone is more than hardware. Users rave about it as a great media player and a decent mobile Web device. And the enormously popular iPhone App store, which lets users download software to run features like Facebook and weather widgets, gives Apple a competitive edge.

But is that enough to keep the halo glowing?

Apple does have one option if it needs to reinvigorate iPhone's sales: Cut the price to $99.

Sounds good, but don't hold your breath. Apple doesn't lower prices on new, improved models. Last year, for the rollout of the 3G iPhone, the price was cut from $400 to $200 when Apple agreed to have telco partner AT&T cover a bigger portion of the cost to buyers. In exchange, AT&T locked iPhone customers into higher-rate two-year contracts.

Apple is far too cunning, or proud, to repeat Motorola's pricing disaster. Toward the end, Razrs were given away two or three at a time as bait for new contracts.

The takeaway: Winning streaks are glorious, but they never last.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $123.42 -0.66%
GOOG $549.75 -0.98%
NOK $7.69 0.65%
T $32.76 -0.18%
FB $83.13 0.14%

Markets

DOW 17,682.43 +4.20 0.02%
S&P 500 2,057.13 +0.98 0.05%
NASDAQ 4,872.7960 +9.4340 0.19%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs