Apple Inc. (NASDAQ:AAPL) and Netflix, Inc. (NASDAQ:NFLX) turned out to be the revelation of 2014 much to the surprise of investors; having attained respective gains on their respective fields of operations. Bloomberg’s, Betty Liu, believes that Netflix remains the biggest winner of the ongoing transition in viewing content online as opposed to relying on cable networks.
Netflix, Inc. (NASDAQ:NFLX) had an impressive run in 2014 although the rally tapered in the last three months of the year attributed to an increase in subscription fees that affected subscriptions.
“Not that I doubted Netflix, Inc. (NASDAQ:NFLX)’s growth or anything of that sought, but I kept having people telling me all year long. You’ve got to watch this show, you’ve got to binge watch House of Cards Orange is the New Black and all this other platforms and I never took to Netflix until this year,” said Mrs. Liu.
Brendan Greeley, on the other hand, admits having gotten it wrong on Apple Inc. (NASDAQ:AAPL) in 2014 which had one of the best runs in terms of devices sales. The company’s refresh cycle saw the unveiling of iPhone 6 which continues to command strong demand with attention now shifting to iWatch which is to be released sometime in the year.
“I have always thought that Apple Inc. (NASDAQ:AAPL) needed to make cheaper phones to compete, and I finally realized this year that they are smarter than I am. Because they have refused to drop the prices of their phones, and it turns out that everyone who did compete on price Samsung is being out-competed in turn by Xiaomi,” said Mr. Greeley.
Greeley points out that Apple Inc. (NASDAQ:AAPL) pricing strategy has resulted in its products acting as luxury brands offering high margins on the high end. Liu also notes that Apple products have turned out to be so good in terms of design something that might affect it going forward. Consumers are prone to refrain from upgrading to new models in instances where they have a gadget at hand that satisfies all their needs in terms of operations; this has mostly been the case with iPads.
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