Timeline Strategy Consulting

It's What Apple's Not Doing That Has Analysts Worried

First, while Macworld didn't provide revolutionary products, it did highlight a number of stealth business strategies that will quietly build the brand and profits. There was a huge amount of user value announced, mostly on the software side.

Second, why should Apple lower iPhone prices significantly? They have built a massive pile of deferred revenues and profits through sales of at least 19 million iPhones at $600 each (13 million known in 2007 through AAPL Q4'08 PLUS estimated 6 million in AAPL Q1'09). These deferred earnings provide a massive amount of inertia in the effects of any single quarter.

Perhaps the analysts should leave the price setting to Apple. They seem to know what they are doing. Do these analysts honestly believe that a company as sophisticated as Apple, with their wireless checkout in Apple Stores, isn't managing prices to optimize revenue?

Peter Misek, by the way, practically comes in his pants when talking about RIMM, so one can't really trust his opinion. Google him for more information about his bias.