This seems to suggest that the rate of growth of that metric will decline over the next two quarters.
#DOUG KASS REAL MONEY PRO DAILY DIARY PLUS#
Also keep in mind that iPhone 6/6 Plus sales will likely cool off over the next two quarters as customers await next generation iPhones. Under no circumstances does this information represent a recommendation to buy, sell or hold any security. Note that this number increased from "barely in the teens" (let's call it 14%) last quarter to "about 20%" this quarter. Doug Kass is the president of Seabreeze Partners Management Inc. While the above certainly seems like a risk to keep an eye on over the long-term, I think – at the very least in the near-to-medium term - Apple's iPhone business will continue to have legs.įor example, two quarters after the iPhone 6/6 Plus hit the market, iPhone 6/6 Plus penetration within the iPhone installed base is just 20%, according to Apple CEO Tim Cook. Users may choose to hang on to devices longer, particularly if future iPhones don't offer enough obvious and compelling features to justify plunking down a lot of money for a phone (although the fact that Apple's iPhones keep their value well can take the sting out of an upgrade). The risk is in regions where such carrier subsidies aren't as common. After all, paying $200 to $400 upfront for a device that is very likely a core part of your life and then reselling it for approximately the subsidized cost when it's time for a new phone is a pretty compelling value proposition. In markets where carrier subsidies are popular, I don't think it'll be a problem at all to convince customers to buy newer iPhones. Going forward, Apple is going to have to dazzle customers with meaningful improvements that will get them to plunk down substantial amounts of cash on new iPhones. The move from smaller screen iPhones to the larger screen iPhone 6/6 Plus is a move that can only be done once.
To be clear, although I'm pretty positive on Apple's future and would describe myself as a fan of Apple products, I can see where he's coming from. I think it's worth pondering whether Kass will prove to be right or if future iPhone launches will continue the momentum set by the iPhone 6/iPhone 6 Plus.
#DOUG KASS REAL MONEY PRO DAILY DIARY UPGRADE#
Doug Kass, president of Seabreeze Partners and well-known columnist for The Street's Real Money Pro, recently said that he's going to be "more aggressive shorting Apple ( AAPL 1.19%)." In particular, he thinks that Apple's "last significant product upgrade cycle" - the iPhone 6/6 Plus cycle - is "nearing completion and that neither the watch nor Apple Pay will move the corporate needle."
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