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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.

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  • 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 Reply
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  • "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 Reply
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  • 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 Reply
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  • I think 28% refers to smart phone market in N.America.
    2008 May 28 02:19 PM Reply
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  • 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 Reply
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  • 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 Reply
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  • kmanm... way to go, you actually read the article, unlike some other posters!! HAHA
    2008 May 28 02:25 PM Reply
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  • Yah... dream on fans.
    2008 May 28 02:28 PM Reply
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  • 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 Reply
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  • 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 Reply
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  • 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 Reply
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  • 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 Reply
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  • 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 Reply
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  • 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 Reply
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  • Ruthymar, it all depends on how far you are away from the tower, it is that simple!!
    2008 May 28 03:18 PM Reply
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  • 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 Reply
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  • 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 Reply
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  • 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 Reply
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  • 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 Reply
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  • 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 Reply
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