Not Buying It: Sanford Analyst Toni Sacconaghi's iPhone Hit Job

| About: Apple Inc. (AAPL)

Disclosure: The author is long AAPL.

Sanford Bernstein analyst Toni Sacconaghi published the results of a May survey of 105 U.S. and European CIOs concerning their purchasing plans of high profile products like iPhones and Vista. The results, according to the survey, don’t bode well for enterprise adoption of the iPhone.

I have two problems with this study. First of all it was conducted in May, well ahead of Apple’s World Wide Developers Conference [WWDC], from which details were released that would undoubtedly sway many of these CIO’s opinions. Secondly, Toni Sacconaghi was behind the survey. He's a well known Apple (NASDAQ:AAPL) antagonist who seems bent on dissing everything Apple by manipulating statistics and warping his analysis.

The problem with this report is not the content, but the message it’s trying to deliver. Apparently, Bernstein wants you to believe that the iPhone has no place in the corporate arena. Anyone with an ounce of sensibility knows that the iPhone is not just a smart phone, it’s a revolutionary mobile computing platform. It’s by all accounts disruptive technology, the black swan, that’s taking the world by storm. Evidenced by the fact that it will be soon shipping in virtually every industrialized country in the world.

Toni is trying to single handedly position the iPhone as a consumer-only device, as he was quoted saying, “I think most investors are looking to the iPhone as being principally a consumer device.” You think? Or do you know, Mr. Sacconaghi? We’re interested in what you “know,” not what you think, because we all know where your thinking has gotten you with past blunders, like the case of the 1.4 million missing iPhones. Another firestorm started by Toni, with obvious malicious intent.

How about this quote, and inane conclusion, that can only be described as a logical fallacy know as a non-sequitur, where the conclusion does not follow the premise.


Our CIO survey suggests that corporate iPhone use will be driven by employees purchasing their own iPhones, rather than company-wide deployments… If this persists, it may ultimately limit iPhone penetration into the corporate space.


Did Toni ever hear of the Trojan Horse effect of Apple’s design aesthetic? Did he even bother to survey the 35 percent of the Fortune 500 companies working with Apple to evaluate business software for the iPhone? I’m sure they weren’t on Toni’s short list of survey takers. Did he even bother to talk to Apple’s principle customer, small businesses with 200 or fewer employees? These users far outnumber those at Fortune 500 companies by many orders of magnitude.

And what about institutes of higher education like Abeline Christian University, or Vanderbilt University, that plan on making the iPhone integral with virtually every student activity? The fact is, Toni has always been known to manipulate the facts to suit some hidden agenda. Either that, or he’s simply out of touch with the rest of the world. 

Check out the following video, and tell me that the iPhone and iPod Touch are not going to break new ground in the way we do everything. A new era is upon us Toni, come on in - we’re a very forgiving bunch and we don’t want anyone left behind.