Apple gets downgraded: Worried about subsidy cuts?

by Chris on April 10, 2012

An Apple analyst cut his rating on Apple stock yesterday.  I thought the argument was actually pretty fair, and certainly plausible as far as short term effects on the stock go.

He’s basically arguing that AT&T will change hardware upgrade policies, which will cause Apple to fall $1 billion short on Q3 numbers.  If he’s right, the stock will probably get hurt.

I wrote about it over at in this post. I’m always interested in your comments here or over there.
Separately, I hosted about 18 people at my house for Easter.  A whole pile of relatives from my wife’s side of the family.  One of her cousins, who is 18, has given up her BlackBerry in favour of an iPhone 4s.  So, naturally I asked a few questions about the move.  Here is a summary of her main comments:

  • She was the first of her friends to make this move.  The rest are all on BB and are all users of BBM.  She says they all hate her for this (jokingly).
  • She’s texting now instead of using BBM.  Everyone of her friends has WhatsApp, but nobody uses it.
  • She made the switch, according to her, because of better apps and Siri.  But I scanned the phone and she only had the Facebook app, Twitter, and Instagram.  The first two work well on BlackBerry, so I don’t buy her reasoning.  Yet, that’s what she said.  So it’s the perception that matters, and it proves RIM needs to deliver more apps.
  • She hates the battery life on the 4S compared to her old BlackBerry.  She brings her charger with her to friends’ houses.
  • She’s OK with the touch screen keyboard now.  Initially it was annoying.  Not so much anymore.
  • The browser was also a big point for her … she said her BB browser “sucked”.  Can’t argue there.  She was on a 9700 running OS 6 previously.  The browser only became decent (in my view) on the 9900 running BB7.

Anyway, that’s the take of a teenager who switched to Apple.

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