Comments on: It’s a large world after all A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 By: Ginger Yellow Tue, 17 Nov 2009 09:50:51 +0000 There’s quite an amusing symmetry here. US phone networks have crippled smartphones (especially Nokia’s) for years, which was a major factor in allowing the iPhone to make such inroads in the US despite offering less functionality than many much cheaper smartphones would if they weren’t crippled (and do in other countries). Now the iPhone is being crippled in China, causing Apple and mainland China’s economy to lose revenue. Silly behaviour all round.

By: Robert Simmons Mon, 16 Nov 2009 18:13:47 +0000 I love it.
1. Everyone agrees that the government is causing a problem.
2. Markets deal with it as best they can behind the scenes, but imperfectly.
3. Blogger celebrates this as an example of market inefficiency.
4. Commenter points out this illogic.
5. Different commenter claims that efficiency requires everyone to have all knowledge.
6. I hit my head from reading this stupidity poor understanding that comes from I have no idea where.

By: Not_American Mon, 16 Nov 2009 17:44:32 +0000 LOL gotta love the self-important strains sometimes regurgitated by bloggers. All bloggers really are are linkers to interesting articles that may or may not otherwise have come across the readers purview – normally the opinion penned is irrelevant. The self-congratulation for doing your job is akin to a defensive player in NFL making a sack and celebrating like he just won the Superbowl.

I think it even lessens your ‘credit’ when most of the links you do post are usually sent to you; it’s not you’re trawling the web and found all this great stuff.

By: SelenesMom Mon, 16 Nov 2009 16:49:19 +0000 @ qwerty, agree. And as a once-and-future Russia-watcher, more broadly, it shows that you can have enormous, ENORMOUS numbers of smart people running around, all yelling things like “Woo woo! China is the future!” and yet still significant amounts of information on widely watched topics such as AAPL get imperfectly understood. Just think what we probably don’t know about, say, Chinese alternative energy companies looking for NASDAQ listings.

By: Qwerty Mon, 16 Nov 2009 16:38:38 +0000 Market inefficiencies illustrated by this story:

1) There is arbitrage occurring. The unlocked-at-the-factory iPhones are available from the Apple store in Hong Kong at 4800 RMB and they sell for 6000 RMB in Shanghai. That’s a 25% markup and well above any reasonable estimate of transportation costs.

2) Apple watchers and market commentators were not aware of something that is common knowledge on the streets of Shanghai. Since efficient markets imply complete knowledge sharing, the market isn’t efficient.

What adjustment should occur to Apple’s share price as a result of this information I have no idea, but bear in mind that the total number of reported sales is still correct, it’s just that some sales to China (mainland) are being reported as sales to China (Hong Kong).

By: secretivek Mon, 16 Nov 2009 15:39:03 +0000 Could you address how this shows that markets aren’t efficient? Seems to me to show exactly that they *are* efficient. Is Apple’s stock being mispriced by the belief that they have no future in China? Is this information (the crippled phones, the sales number in Hong Kong, the fact that Chinese don’t buy the crippled phones) somehow *not* having the effect it should? Are Chinese buying worse phones at higher prices?

By: Bento Mon, 16 Nov 2009 15:14:18 +0000 Hello, Bento here:

Just to be clear: The pundits do know the official Chinese iPhone is crippled. They just don’t get why Apple would want to introduce it in China. (Answer: to allow iPhone advertising and a Chinese app store, both of which benefit Hong Kong iPhone sales.)

PS I prefer “mysterious” to “little-known”.