I think you are underestimating the coolness factor, which will drive buying. No one actually needs an iphone, but a lot of people will want them, and that will create a snowball effect. Blackberry users seem to be very dependent on the device but not in love with it. It will look like one of those first generation cellphones compared to an iphone. As for the economic argument, look at all the college students driving new BMWs. Does that make sense? People have loads of money to spend, pure and simple.
I agree 100%, but I was just making an argument based on what I saw when I sold cell phones at Best Buy. Customers would come in all the time wanting the latest phones then get pissed off when they found out how much money they'd have to spend to cancel their contract. Not sure if most of them came back, but some probably did. I think a great strategy for AT&T would be to offer the same price to all their current customers, and new customers for the Iphone. Also, they should agree to pay for half of the fine to cancel their previous contract with another provider. I believe this would drive sales through the roof. Then again as much buzz as this is creating, I bet a lot of people will buy the phone on the spot and worry about the cost later. It is a cool phone I wont lie, I like it. I also laugh at all the other companies making "iphone killers". They simply wont work. Sanyo made the Katana, Samsung made the Blade, and none of them stood a chance against the Razr. When I sold cell phones I sometimes wondered if those underdog companies ever understood the cell phone market.
Bingo. This wouldn't be the first generation of AAPL doubter shorts to get crushed. AAPL needs to capture 2% (or was it 1%?) of the cell phone market share to meet expectations. Well alot more than 2% of the high-school/college kid/trendy market out there has enough discretionary money to spend... especially when the product is as functional and cool as the iPhone. Phone+iPod+GPS navigation+camera+internet ... its all a consumer needs. I'm a cheapass 20 year-old college kid and even I'd consider getting one... that says something. Then there is the fact that market share of Mac users will continue to increase as they get new customers and old ones remain very loyal to the brand.
apple has now made a 100% retracement from its latest move up... is it tiime for this bull to run ? Ive covered my shorts and Im now long 400 shares Am I crazy ?