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A Coup D’etat at AAPL

October 22, 2014

Decisive actions don’t happen in business as often as in politics, but what Apple did this week is an economic coup d’etat and I don’t mean just the popularity of the new iPhone 6. Let’s look at the incredible app that come with it. Apple is now in the retail PayPal business that may transfer more billions from hand to hand than the value of Apple itself (600 billion). Poor newbie Plastic that appears with a good idea to replace your multiple credit cards with just one super card, “Jack of all trades” for a fee, and poor newbie Coin that wants to streamline your payments. Do these 2 midges fighting a giant know their psychology? They charge $100 entrance fee to their unknown gadget show expecting to win the race against the Apple horse, ridiculous! Are they aware that delaying their entrance til next year gives Apple a huge head start that it actually doesn’t need. Don’t plastic and Coin realize that getting 10% of the retail market for each of them won’t cut the mustard to avoid folding up? Yah, consumers are attached to their plastic credit cards but is that a strong enough force against the Apple app in the cloud? The iPhone is more intimate and personal than any card, it’s your baby!

Let’s do a serious psycho-analysis of the economic coup d’etat at the Apple store:

1. Likert scale has a -2 – 1  0  +1 +2. Solving a problem gets you from -2 to -1. Improving gets you from +1 to +2. These are good changes. But, crossing from -1 to  0 to +1 is transformation. Is Apple sending a billion financial transactions to the cloud? They will be the fastest in the business of numerical living in the fast lane.

2.  Is Apple going to dominate the business of paying for products and services? 10%, 25%, 50%, 75%, 100% What do you think?

3. I don’t know about you, but to me this electronic horse race to the cloud is exciting to watch. I think Apple will win because CEO Cook that replaced CEO Jobs with fitness and skill is swell. And, for Seeking Alpha or other blogs that sometimes quote me, please don’t do it this time. I may be biased because I own a cart of apples since 1997!

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