Capper

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

I don't own an iPhone, but I do own Apple. The people I know who have purchased iPhones spend their limited incomes frivolously and are impulse buyers. When you look at the cost of an iPhone proportionately to the average level of income, it just doesn't compute for many people. And while I'm banking on lots of people being dumb with their money, don't expect corporations to follow suit. 400 clams is a car payment for most people, or almost half of a house payment, or a child support payment. Why would any intelligent consumer shell out that much money for a platform that will soon be replicated and available for much less in time?? Look at the GPS. My first one was $750. The second one was $150 and performs the same.

Additionally, there are some mighty comparable phones out there for almost nothing! And honestly, companies want employees to be accessible at their every whim. That's what the Blackberry does, and does it well. Why would companies want to pay for extra bells and whistles, particularly in this economy? They all have financial managers who would protest mightily.

There is only a small percentage of corporate execs who get the top bennies, like a company car that's NOT a Ford Escort, or stays at the Ritz-Carlton, or private jets. These folks may have an iPhone provided for them, but don't count on the rest.

That being said, KEEP BUYING THEM!! I love this stock.