Jeremy Elliott

AT&T Subsidy of Apple's iPhone Would Have Dramatic Effect - Bernstein

Tom B is right. I know we've been buzzing about 3G ever since we were standing in line on the the 2.5G release day. No matter how many Gs you get, there are three words that keep making Apple successful over its competitors regardless of form-factor: software, software, and software. What tipped the scales in iPod's favor aver all those look-alike 2.5" HD boxes that played mp3s? The software. Why are Mac sales accelerating faster than other PC sales? The software. The entire key to iPhone's future is in the developers acceptance of the SDK and the trampoline effect widespread acceptance of iPhone as the next--and first--truly handheld computing and gaming platform will have on revenues. I recall a table Q&A on stage 7 months ago between Gates and Jobs at some developer's conference. Each was asked to compliment one another, and it was there that the normally tight-lipped Jobs let it slip. He said that the biggest bright spot in Gates's career that he wished he would have picked up on earlier was Bill's ability to open up his platforms for partnerships with the right developers--harnessing and leveraging the talents of outsiders. Jobs isn't making the same mistake twice. iPhone is a Wii controller for a 3D game to a 13-yr old and a CRM portal to a 35 yr old sales exec. Even MS is developing with the SDK! Forget 2.5G vs. 3G vs. subsidized retail prices..... it's the software, stupid.