the phone market is larger than the pc market. with the pc prices approaching phone prices (at least the iphone category), it makes sense to step into the phone market. This iPhone is only the beginning, I am sure Jobs will create more variants of it, just like the iPod. With proper marketing strategy, AAPL can garner a bigger % market share in the phone sector (by category) than the pc sector. AAPL is on the winning trek. <img src="http://www.blogsmithmedia.com/www.engadget.com/media/2007/01/dsc_0245.jpg">
Huge coup to unbundle the iphone, as they'll double their store traffic. Major disappointment not to use an HSDPA cellular chipset. Today's run is due to the iSuppli data in holiday-thin trading. iSuppli stated that Apple's unit-cost was actually a dollar higher than their predicted-cost some weeks ago. Non-event.
Apple has never been a (follower) company there business model is NEW innovative products. They are out gunned in a saturated market filled with too many large players and cheap manufacturers. Mark my words this will be a huge corporate blunder.
this will arrive in your town soon. It is already reported in your newspaper. http://www.thestar.com/News/article/170455
When have you ever seen ppl stand in a line, 1000-deep [Miami], to buy a cell phone? It's a huge stretch to make a bearish case for the iphone. 1mm phones netting AAPL $250mm in earnings, excluding AT&T royalties. Jobs' predicted 10mm units in 2008. I think that's wildly optimistic, but would net AAPL two billion or more.
Jobs was not predicting 10mm units. He was merely illustrating the size of the market... even a lowly 1% is 10mm units. His presentation video is on the web.