More Good News About the 3G iPhone

Just imagine a recently released product that has already grabbed 6.5% of the global smartphone market, behind established players Nokia (NOK) (52.9%) and RIM (RIMM) (11.4%).

Now imagine that the product is upgrading itself to a faster, 3G network that will be available internationally to almost 650 million subscribers should they choose to buy the product.

Such is the plight of Apple's iPhone. The trend towards mass adoption of smartphones has been breathtaking. The New York Times estimates that of the 2 billion cellphones sold last year, some 125 million of them were smartphones. Last year, sales of smartphones were up a staggering 60%.  And in North America, the iPhone has already captured 28% of the market.

Now comes news that the new 3G iPhone - expected to drop on June 9th - is loaded. Apple has licensed Microsoft's corporate email technology, which will allow the iPhone to securely link to corporate networks using the technology. The chipset is rumored to be the the SGOLD3H from Infineon - a powerful chipset able to handle the type of 3G networking favored in Japan and Korea, WCDMA.  The power and speed opens the door to a myriad of possibilities (GPS, stronger camera, more advanced video and music capabilities and applications). And of course, iPhone syncs with iTunes in a manner that competitors simply can't match.

Given the 650 million size of the potential customer base and the unique nature of the product, the iPhone's profit potential is enormous. With Apple (AAPL) stock surprising down 4.32% over the last 100 days, this might be the time to pick up some shares.

Comments

[Palisades:]

What in your article qualifies as "more good news about the 3G iPhone"? Everything you have listed has been known for weeks. Were you just feeling left out of the endless AAPL puff pieces? Don't get me wrong, I am an AAPL long, but this "article" was a waste of time.

2008 May 28 01:42 PM

[gofer:]

"And in North America, the iPhone has already captured 28% of the market"

... where'd you get those numbers? From your front pocket?

2008 May 28 02:09 PM

[JPU:]

Yes, you might think all other cellphone companies are dead. There are at least 5 major players coming out with similiar products. And not to mention many smaller companies coming out with all kinds of touch screen 3G smart phones at competitive prices. iphone is selling great in the US but not in Asia.

2008 May 28 02:16 PM

[kmanm:]

I think 28% refers to smart phone market in N.America.

2008 May 28 02:19 PM

[samij:]

apple already tried selling iphoe for 550m of those 650m mentioned in the article. outside the us (over 200m "potential customers") they managed to sell about 250000 iphones, and only after dropping the price significantly. well at least i know now definition of "enormous profit potential", it's about 100000 iphones sold / 6 months (above the current sales).

2008 May 28 02:23 PM

[Sucka:]

Well I guess JPU has it all figured out. All other iphone posers are just rediculious. I have tried all the other touch screen products, and they just blow. Apple has already made a killing in the moble market and stand to make a massare with the new 3G version. I work for ATT, and you have no idea how many Asian tourist buy phones we know they are going to unlock back home... lucky for them, we can sell a few without throwing up the red flag!

2008 May 28 02:23 PM

[Sucka:]

kmanm... way to go, you actually read the article, unlike some other posters!! HAHA

2008 May 28 02:25 PM

[gofer:]

Yah... dream on fans.

2008 May 28 02:28 PM

[kmanm:]

Let me just share what I noticed while I was in Ethiopia, Africa just two months ago. Currently the mobile penetration is one of the lowest in Africa - about 2%. I was in the capital city which has a population of 5 million and about 1million mobile users. I saw several ads posted by local mobile kiosks indicating that they unlock iphones. I asked the guy how people get the iphones and he told me most of them bring it from U.S. Mind you, this was in Africa in one of the poorest country in the world. Also, guess what was the hot electronic item? Ipods!!

2008 May 28 02:38 PM

[Brandon:]

There was an article on minyanville.com about how Apple is reinventing itself and the challenges thereof. The author hit the nail on the head.

" * Doubling the number of Apple stores to facilitate broader adoption.

* Building iTunes into a media storehouse accessible across all screens (phone, TV, PC, etc.).

* Catapulting the iPhone into a 3G global platform that spans networks and geographies.

* Turning the TV into a 21st century device that can manage our media-intensive homes (more on this in a future article).

* Bringing the price point of Macs down further to make switching costs negligible.

* Taking the iBook off the shelf and rebooting it as the breakthrough that the Newton promised (and failed) to be.

* Engineering OSX into a corporate-ready operating system that steals share from the Windows hegemony.

* And, oh yes, evolving the iPod to be an indispensable part of people’s lives for years to come."

All these things except corporate adoption of OSX are probable if history is any indication.

2008 May 28 02:39 PM

[aapl:]

We'll see Richard, we'll see ;-)

I think Apple's blowing out with this phone in the next couple o' months. We'll see... but don't underestimate this thing.

2008 May 28 02:53 PM

[JPU:]

To FreeRange- Did I mentioned iPhone is low quality product? There are two different markets in Asia. For people who can afford to travel abroad, they will buy name brands. But for younger generations between 15-30 they well settle for cheaper smart phones. And most iPhone components are made in Taiwan and China. HTC came out with new 3G touch screen smart phone"Diamond" Iam sure you will say its junk.
I did a research on iPod with students. And most of them doesn't care about iPod. What they cared are the function and price. But what makes you think iPhone is unbeatable.Time will tell, but not you.

2008 May 28 02:56 PM

[ruthymar:]

Wish the iPhone didn't use AT&T which does not work in my home because of radio towers--which Verizon didn't even notice. I hear AT&T covers less area than Verizon, with weaker signals. It certainly has been true for me...

2008 May 28 03:15 PM

[Sucka:]

HTC... I had the tilt for awhile, and it was possibly the worst "smart" phone I had ever used. I took me well over 20 seconds to type a phone number. I think HTC has some good ideas, but the 10mhz processor they like to use, ever since the 8100 series, has got to go!!

2008 May 28 03:17 PM

[Sucka:]

Ruthymar, it all depends on how far you are away from the tower, it is that simple!!

2008 May 28 03:18 PM

[jonesy:]

JPU: iPhone is "not selling great in Asia" because it's not even for sale (officially) in Asia. That's like saying the OLPC isn't selling well in corporations.

And you don't think Apple has become a "name brand", even in Asia?

If you'd read the comments, you'd see lots of reasons why Apple will continue to do well, and likely be unbeatable in the market segments and geographies in which they are competing.

2008 May 28 03:23 PM

[digivision:]

JPU .. the Iphone is not selling well in Asia because no one carries it .. LOL
to make dumb comments like that at least wait until there is a carrier selling it in the stores in Asia then you can come back and blabber..

2008 May 28 03:28 PM

[digivision:]

JPU--and don't generalize when you say Asia .. Japan is not China, HK or Taiwan etc.. they are all different markets

2008 May 28 03:35 PM

[JPU:]

Mark2005: Apple is a name brand in Asia, so is Nokia and LG. iPhone is a great product without doubt, but why underestimate other cellphone companies. Competition brings out innovation and creativity.
Nokia has to lower its price to compete with no brand name cellphones in China.

2008 May 28 03:38 PM

[digivision:]

JPU.. "Competition brings out innovation and creativity"
really ?? sorry but in the cell phone market what innovation have you seen before the iphone came out ??? a bigger camera and thinner phone ?? is that all ?
And it's not that there wasn't competition before Apple entered the market.. the same thing that happened with PCs years of cheap junk and no innovation, the only exciting thing in the PC industry is coming from Apple since the Apple II

2008 May 28 03:47 PM

[digivision:]

sorry .. the new windows os is truly cutting edge .. they have touch screens LOL
they call it "multi touch" HAHAHAHA

It reminds me of an Austin Power's joke

2008 May 28 03:49 PM

[beatgirl:]

Every time someone writes an article on Apple there seems to be a terrific catfight going on in the comments sections...I don't understand it...Whether or not you use or appreciate Apple products, this site is for investors...If you'd invested in AAPL 5 years ago today you would have realized a 1,946.06% return...(as seen on AOL money advanced charts). Compare the returns for the following competitors: Dell -30.46%, MSFT 15.44%, HPQ 140.04%. The bottom line is that Apple makes great products that people want to buy. Then, the stock goes up:) Very simple stuff.

2008 May 28 05:49 PM

[dmf:]

jpu, i read a review of the new HTC touch screen phone and it looks like a good product but functionality is what i think is most important. Apple is not a cell phone company and on attempt #1 they've managed to put out a better product than most phone manufactures. Apple understands (usually) their customer and listen to them better than any phone company has, does or will. it's the software stupid!

2008 May 28 06:13 PM

[User 201561:]

I hope they'd sell the iphone just like other mobiles -- without being locked to a certain network..

2008 May 29 06:44 AM

[Sylny:]

The question for me has always been: What if Steve Jobs gets hit by a car on the way to work? Isn't the company a bit of a one-man band?
Are there other solid marketing people and innovators to take over at Apple? That would seem like a serious question for a long-term investor.

2008 May 29 08:12 AM

[mollytjm:]

to imthebeatgirl...thank you! yes,the bottom line: Apple remains a great buy! i can't wait for June 9th!

2008 May 29 10:06 AM

[Nextel Acce...:]

3G? where is 4G?

2008 May 29 11:27 AM

[brewer:]

Great post. Nothing particularly new, but at least this guy has a clue about Apple--the best company in tech, the only one actually pushing the envelope, the one the posers copy (superficially, none get it even close).

Personally, I do think that Apple would be OK if SJ were hit by a bus, but yeah, the stock would take a hit. Set a stop loss, don't worry about it, just be glad it's not you. So many haters out there, spreading the FUD, without end...

2008 May 29 11:39 AM

[losmarinos:]

The iPhone is truly Magic, I can't wait for 3G and Voip Calls via WiFi, SKYPE get on with it.

2008 May 29 04:06 PM

[User 149764:]

There is a lot to say for Apple:

- According to JD Power Associates Apple has the highest brand recongnition and repurchase loyality than any other computer manufacture.

- In Business Week's April 2008 survey of the most innovative companies - Apple was number one.

- Apple has 70% share of the MP3 market. Although I-Pod sales have been recenty on the decline that shouldn't come as suprise. Since introduced in 2001 they have sold 150 million around the world. Who doesn't have one yet?

- iTunes has now surpassed Walmart as the number one music retailer (now 80% share). With 3 billion songs sold and at $.99 a song, well, do the math. Just wait when they start pushing 3D gaming and high def movies.

- The world cellphone business rose 10% last year. Apple was only 0.6% of that market. There is definitely "room to grow".

- Over 43% of Apple's computers come from their desktops and portable computers. For the 1Qtr 2008, Apple's increase in market share (32.5 %) was the highest than all manufactors, and more than double than the largest computer distributer Dell.

2008 May 30 12:59 PM

[optionfire:]

Not just in Delhi -Bombay but also in small towns even the taxi drivers have connections to guide you how to unlock any phones....specially iphones ---2G are already online priced at Rs.29000...that is just the phone...
Local Telephone services are very different plus lot cheaper in India.
Since AAPL is not in the telephone service business ....the "sales of iphones " will register in Q3 -Q4-Q5...LOTS OF People are already interested in 3G iphone in India ---should say it is a"Pride of possession"...to Change cell phones often is a fashion. Even a street vendors have two three cell phones. Also when they travel from one state to the next thy=ey just insert a prepaid chip to avoid roming charges etc. There are 89% cell phone users in India alone..Now add China, Taiwan + other South East Asian regions. 3G iphone sales will be beyond...way beyond...anyones' calculations !

2008 May 31 12:53 PM

[.crazylegs..:]

This author loses all credibility when quoting that there were 2 billion phones sold in 2007. This isn't even close tot he real number that is just over half that figure.

And doesn't any of these iPhone fanatics do proper analysis. It's so easy to say that the market for iPhone is now 550 million users but it's harder to actually quantify the number of users who can 1. actually afford an iPhone or 2. who would actually buy one.

2008 Jun 03 02:53 PM

[David Brian:]

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WE ALSO STOCK NOKIA PHONES, HTC PHONES & IPODS:


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2008 Oct 05 09:04 AM

[David Brian:]

We are selling the unlock 3G Apple 16GB iPhone for just US$500 and also the 3G Apple 8GB iPhone for just US$450 (Including FREE SHIPPING) and guaranteed that it will work with any preferred network.


This does not VOID your Apple warranty since you are not hacking the Firmware. You do not have to worry about it relocking when Apple comes out with a new Firmware.


BUY 2 UNITS 3G 8GB iPHONE FOR JUST US$800
BUY 2 UNITS 3G 16GB iPHONE FOR JUST US$900


we sell the 2.0 firmware version
This phone includes all of the standard Apple equipment:
Apple iPhone 3G
iPhone Docking Cradle
Apple Wall Charger
Adapter for Computer Uploading / Wall Charging
Headphones for iPod Use
Polishing Cloth
Manual, Warranty Information and Quick Start Guide


WE ALSO STOCK NOKIA PHONES, HTC PHONES & IPODS:


Mr David Brian
Celebrity iPhone Zone.
Email: iphone.zone360@gmail.c o m
iphone.zone360@inbox.l v
Tel: [phone].

2008 Oct 05 09:08 AM

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