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Quality Products and Recurring Revenue: Variations on a Theme

August 19, 2015

From focus, to fundamentals, to financials:

I have two quotes up on my wall: One is mine, “Quality and consistency creates the addiction.” Zane Lowe Talks […] (Jem Aswad; Billboard)

Apple is perceived as a hit-driven business. That’s not as attractive as a business that collects rent. Of course, the logic has not sunk in that having 1 billion loyal customers is a recurring revenue business. Devices are a recurring revenue model too. Not yet appreciated as perception lags from consumer electronics era. Horace Dediu, on Twitter. (First, second, third Tweet.)

Sprint unveiled Monday a new leasing plan called iPhone Forever that starts at $22 a month for an iPhone, in addition to the monthly service fee. Customers can upgrade to the latest iPhone each year as soon as it is available. That is an improvement over Sprint’s current leasing offer, which only lets customers upgrade to a new iPhone every two years. Sprint to Abandon Two-Year Contracts (Ryan Knutson, WSJ)

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Filed Under: Apple, Contracts & Subsidies, Product Development, Smartphones, Sprint

Monday Assorted Links

August 17, 2015

1. LG bets that OLEDs are the future of displays

It’s investing the equivalent of $8.5 billion into developing OLED technology over the next three years for everything from TVs to cars to wearables.

2. Project Ara delayed until 2016, looking for new locations in US

3. Leaked iPhone 6s schematics hint at the same 16-128 GB storage options, new SiP architecture

Drawings indicate that Apple would indeed be employing a System in Package (SiP) technology along with a Printed Circuit Board (PCB) architecture. The SiP technology is used by Cupertino in the Apple Watch, and it allows for faster production of more compact and more efficient circuitry.

4. Sprint CEO hints at plan to turn old iPhones into new customers

“Used phones and, the iPhone in particular, have tremendous appeal,” Claure said. “We have a surprise in terms of what will happen to these used phones.”

5. Sprint to Abandon Two-Year Contracts

6. Charts Not Playlists

The future is TRUSTED filters directing the audience where to partake of desirable music.

Applies to more than music.

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Filed Under: Apple, Assorted Links, Curation, Display, Google, LG, Processors, Refurbished, Smartphones, Sprint

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