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Feb 1, 2010

Steve Jobs, Apple, the iPad, and King Gillette

¡We have received a new analysis  of  Adam Hewison  on title subject:!

Fernando Guzman Cavero

On Wednesday, after much hype and drama, Steve Jobs walked onstage and unveiled Apple’s latest creation - the iPad. Having watched almost every key address for Apple for many years I, like many others, were disappointed that the product didn’t live up to the hype. Nonetheless, Apple will sell a boatload of these products, but not as many as the iPhone.
Upon reflection, it occurred to me that Steve Jobs is changing the whole business model of Apple and I don’t believe anyone has caught on to this yet.
In all the reports I’ve read after the launch of the iPad, I think every writer /analyst missed this key point: Steve Jobs wants to be like King Gillette.
If you don’t know who King Gillette was, you may not old enough to shave. King Gillette started his business at the beginning of the century. His business model is what I believe Apple’s business model will be in the future.
Long ago, King Gillette decided to practically give the razor away at or below cost, but sell the razor blades separately.
So here’s what I think, I think Apple wants to give the iPhone and the iPad to as many people as possible at cost or with a small profit. Remember now, AT&T subsidized the iPhone and Apple gets a slice of the pie from every AT&T customer that has an iPhone. Now why would they do that you might ask?
The key reason, I would argue, is that Apple wants the magic of recurring revenues. This is the dream of many companies - to have millions of folks paying a small amount of money every month for using a service. What makes Apple stand out is the fact that they have an army of developers who are writing code for some very cool apps. Yes, there is an app for that. In fact, there is an app for almost every idea ever thought of.
Not only has the app store been widely successful, but Apple also has iTunes, and iBooks along with iTV coming down the road. So this is what I believe Apple’s business model is going to be: with 125 million people who have giving Apple their contact and credit card information, Apple has a huge base of customers much like the newspapers and magazines did in the ’60s and ’70s, but on a much smaller scale. Now Apple can upsell products to those customers at will. The genius part about all of this is the fact that other people are creating products to be sold through the Apple store. Apple just reinvented the King Gillette model in a thoroughly modern way. Hat’s off to you Steve.
That’s my take on Apple’s stealth business model.
Now let’s take a look at the stock.
In my short video, I explain to you some key factors I’m watching that I think will make the difference in this market. If you have a few minutes, please take the time to watch this juggernaut of a stock and what I think is ahead for the market in the next 2 months.
As always videos are free to watch and there is no registration required.
The only request that we make is that if you find the video interesting or even disagree with the analysis, please comment on a blog. We would love to hear from you.
All the best,
Adam Hewison
Co-creator, MarketClub



»click here to see the latest top stories from

It's Earnings Season &...
CNBC 360CNBC Is Earnings Central
Today reports from BP, Archer Daniels Midland, UPS and more. 
»Earnings Central - On line - On mobile


News Alert: Toyota Says It Will Start Fixing Recalled Cars This Week

Breaking News Alert
The New York Times
Mon, February 01, 2010 -- 6:51 AM ET
Toyota Says It Will Send Dealers the Parts to Fix Defective Pedals
Toyota Motor on Monday said it would begin fixing accelerator
pedals in millions of recalled vehicles this week, with some
dealerships staying open around the clock to speed the
The company said its engineers have developed and "rigorously
tested" a remedy that involves reinforcing the pedal to
eliminate excess friction. It said it had an "effective and
simple" solution for current owners; dealers will install a
steel reinforcement bar into the pedal assembly to reduce the
surface tension that could cause it to stick.
Read More:
620 Eighth Ave.
New York, NY 10018
Copyright 2010 The New York Times Company

MarketWatch:: Monday's Personal Finance Stories

 financial crisis, and particularly the lousy jobmarket, 

to fleece those seeking to shore up their
 own financial situations. And the BBB warns that 
2010 isn't likely to see any letup in the nefarious
 behavior.Especially lucrative for the scam artists 
were work-at-home and other offers of steady pay
days that required the marks to pay an upfront fee 
in order to obtain their positions or territories.
 The crooks know how hard it can be for someone
 who has been jobless for any length of time to 
pass up such offers -- even if they should know better.

There isn't much way to stop these sneak thieves: 
They set up shop on the Web and disappear
 before you know it. We just have to be smart about 
who we trust -- which, of course, we should have 
said about the bankers too.

-- Steve Kerch, 
assistant managing editor/personal finance

NFA Releases: NFA sanctions Las Vegas commodity trading advisor and its principal

For Immediate ReleaseFor More Information Contact:
Larry Dyekman (312) 781-1372,
Karen Wuertz (312) 781-1335,

NFA sanctions Las Vegas commodity trading advisor and its principal
February 1, Chicago - National Futures Association (NFA) has ordered NetBlack Capital LLC (NetBlack) to withdraw from NFA membership and not reapply for NFA membership for a period of five years. NetBlack is a commodity trading advisor located in Las Vegas, Nevada. The firm must also pay a fine of $15,000 in the event it reapplies for NFA membership after five years. NFA also levied a $15,000 fine against John F. Netto, a principal and sole associated person of NetBlack.
The Decision, issued by an NFA Hearing Panel, is based on an NFA Complaint filed in August 2009 and a settlement offer submitted by NetBlack and Netto.
The Panel found that NetBlack and Netto conducted business with Jason Black (aka Jes Black), who was suspended from NFA membership as a result of a prior NFA Business Conduct Committee disciplinary action issued in February 2008. The Panel also found that NetBlack and Netto failed to maintain support for its advertised monthly rates of return as reflected in NetBlack's promotional material.
Along with the $15,000 fine, Netto is prohibited from doing business with Black for a period of thirty months for any and all firms for which Netto is principal. Additionally, for a period of twenty-four months, Netto agreed to submit all promotional material which contains performance information to NFA for review and approval prior to use.
The complete text of the Complaint and Decision can be found on NFA's website (
NFA is the premier independent provider of innovative and efficient regulatory programs that safeguard the integrity of the futures markets.

Forbes. com: Recovery Part Two

Recovery, Part Two 
01.21.2010, 17:40:00 EST
Ken Fisher 

Don't succumb to the pessimism of disbelief.
The second year after a bear market is a fine time to own stocks. 

Good News 01.15.2010, 16:10:00 EST
Ken Fisher 

This should be a great time to own stocks.
But we forget long-term lessons and think about the recent past. 

In Pictures: Five Fisher Buys For 2010 01.14.2010, 10:30:00 EST
Ken Fisher 

Fisher thinks 2010 will be another good year for stocks.
Here are five of his best bets. 

A Grateful Dead Year 12.31.2009, 22:40:00 EST
Ken Fisher 

2009 was a textbook case of how stock markets are supposed to react to
 big bear markets and recessions. 

Mineweb: Top Stories

TOP STORIES | Monday , 01 Feb 2010                                                     

2010: A gap year for metal prices - VM Group

According to the VM Group Metals monthly publication 2010 is likely to be the year metal prices take a breather but, the impact of China cannot be underestimated.   Monday , 01 Feb 2010

Vedanta reportedly considering up to 6 substantive spin-offs

Speculation says Indian mining conglomerate Vedanta Resources is considering spinning off up to six separately listed companies.    Monday , 01 Feb 2010

China posts new record with 314 tonnes of gold production

The Chinese Gold Association reported the county is still the world's number one gold producer, setting a new record in 2009.    Monday , 01 Feb 2010

Firestone Diamonds: right place, right time, right pipe

Junior diamond miner, Firestone Diamonds is well placed technically and geographically to take advantage of the recent upswing in rough diamond prices.   Monday , 01 Feb 2010

U.S. financial oligarchy to open floodgates for gold and silver

The behaviour of, and lack of oversight of, America's financial elite continues to pave the way for further dollar devaluation and for inflation, which in turn will benefit gold and silver    Saturday , 30 Jan 2010

The Strong US dollar continues to put pressure on gold

But, the lower price has seen buyer come back in, partiuclarly in Asia    Monday , 01 Feb 2010

Saudi mining sector gaining momentum

The government views mining as an important diversifier and, as a result, foreign companies are taking note of the possibilities but, water in particular remains a challenge    Monday , 01 Feb 2010

Southern Copper Q4 profit $363.4 million against loss a year ago

Peru's Southern Copper, one of the world's largest copper miners made a huge turnaraound compared with a year ago with substantial increases in sales and profits.    Saturday , 30 Jan 2010

UBS announces new S&P gold exchange traded note

The product which started to trade on Thursday is linked to the performance of the S&P 500 Gold Hedged index    Friday , 29 Jan 2010

Norilsk makes $2 billion profit in 2009 after 2008 loss

World No.1 nickel miner, Norilsk, made a big profit last year enabling it to pay off debt as prices improve.    Saturday , 30 Jan 2010

Weekend Top Story: Is a big potash play in the offing?

The world's two biggest miners continue hunting, and acquiring, in this exclusive area.    Thursday , 28 Jan 2010