Apple

Is there a $99 iPad in your future?

Analysts report that Apple slashed iPad parts orders by 25%. This may be a sign of weakening demand.

Karl Denninger, over at market-ticker.org, predicts Apple's impending fall from grace -- due to declines in sales as a result of the current and worsening economic mess, among other things:

Apple gets a lot of their sales in Europe. But Europe is a train wreck economically. To believe in the forward story and that the production cut is not "real" you have to believe Europe will avoid a Depression. Given what's going on over there, such a belief is an act of pure insanity.

Oh sure, they might not get the worst of it right now, but this is a forward projection, not a call for a crash in the morning. You also have to believe that the United States will not suffer the knock-on effects and that sales here won't get hurt. And finally, you have to dismiss the fact that HP effectively destroyed pricing power for tablets with their "blowout" of the Touchpad.

Denninger thinks that HP's Touchpad $99 blowout may have altered consumer price expectations:

The latter may well be a stake through the heart. HP's "blowout" put the $99 price point in the mind of consumers and that is not going to go away. This sort of "ratchet" mechanism has a well-documented history in America, and once it takes hold it is almost impossible to get rid of. There are already signs that this pricing pressure is eroding the edges of everyone else's tablets, with the first to succumb being RIMM's "Playbook." This will reach Apple and margin collapse is a well-documented phenomena that has a habit of trashing stock valuations.

The HP Touchpad is not an apples-to-apples comparison to the iPad. Apple products do sell at a premium, though I think it's safe to say that there are plenty of people who are not willing or able to pay Apple's current prices. If the economy worsens, that segment will grow–so there may be significant pressure to cut prices. And even though the HP blowout didn't last long, it may be returning in late October:

Fortunately, HP will be coming out with 100,000 to 200,000 TouchPads at reduced pricing, sometime around late October, giving you another chance to get your hands on one.

Some have observed that iPad sales may be reaching saturation, as well. If that's the case, Apple may be selling many iPads to repeat, upgrade customers. (Apple's fan base is known to enjoy the privilege of paying for the latest version of the product they already have.)

Will Apple be forced to reduce their premium pricing on the iPad product in order to maintain sales and preserve their market share? Will we see $99 iPads within the next year? If not $99, how about $199? $299?

Get ready for a new generation of ADHD-afflicted kids and adults:

THE bedroom door opened and a light went on, signaling an end to nap time. The toddler, tousle-haired and sleepy-eyed, clambered to a wobbly stand in his crib. He smiled, reached out to his father, and uttered what is fast becoming the cry of his generation: “iPhone!”

So that's it! It's so easy, even a toddler can use it! It's not exactly comforting to know the premiere smartphone, the pinnacle of modern tech design, has a user interface design akin to the Mattel (er... Fischer-Price) See-and-Say. Turn the knob and pull the string: "The Cow Says Moo!"

Interesting story regarding the sheer hypocrisy of Apple's App Store policies:

Sarah Jacobsson Purewal, PC World Aug 19, 2010 6:29 am
Isn't it ironic? The director of Apple's app store (and the enforcer of such draconian policies as the "no-porn policy") has a side job: he sells fart apps on the app store.

At last! We know who to blame for the Apple iPhone antenna problem.

The Apple Inc. executive in charge of the iPhone has left the company following a string of stumbles with the device, and what people familiar with the situation said was a falling out with Chief Executive Steve Jobs.

~snip~

One of these people also said Mr. Papermaster had difficulty maneuvering Apple's internal politics.