pk de cville

While Rivals Jockey for Market Share, Apple Bathes in Profits

"It's JUST (emphasis added) brilliant marketing really."

This is what "JUST" ignores:

brilliant world leading:

- sw and hw engineering
- bricks and mortar retail experience
- iTunes and Apps Store content delivery
- multitouch
- genius bar and telephone support
- Operating System
- mobile and Mac design
- leading edge tech intros
- malware security
- OS SDK

- and the upcoming iTablet will extend the advantage Apple has.

10 Reasons Not to Buy Apple

Hao,

You've a huge misunderstanding of iPhone profits. Reread the WSJ article you cite. Apple's gross profits per iPhone (telecom subsidy included)are estimated to be $400+ (not your $27).

"On a per phone basis, Wu estimated that Apple gets about $600 a phone..." from your WSJ source.

PS - You also messed, up big, time in points 1, 4, 6, 7, 9, and 10, but I won't get into those.

PPS - Turning lemons to lemonade, consider going long aapl (as I am).

Smartphones: It's the Software, Stupid!

Smartphones: It's the Developers' Ecosystem, Stupid!

- the only vibrant App marketplace: Apple
- 90% of developer attention: Apple
- dominant in current game development: Apple
- dominant in developer revenue: Apple
- fairest marketplace: Apple
- most efficient, easiest, (and free) SDK: Apple
- dominant game marketer: Apple
- the only micro payments platform: Apple
- etc etc etc

There's only one Apple when viewed from this perspective.

Game over. Set. Match.

Apple: iPhone Now Accounts for 50% of Mobile Web Traffic

@Techtrader

There's only the one iPhone 3G, unless you think the memory 8GB vs 16 GB makes 2 models.

The Ongoing Smartphone Revolution

Apple buying Sony is a bad idea. The 35,000 employees at Apple would be outnumbered by the 100,000 ??? at Sony. This would threaten Apple's unique and incredible culture for focused excellence in all areas of business.

Apple's culture is the goose that laid the golden eggsssssss and you don't want to mess with what they have.

Cowen Advises: Place Your Mobile Internet Bets On Google, Not Apple

I second Jon T and Tommo_UK and add this.

Arnie needs to take into account the extraordinary nature of the iPhone. Although he and the media haven't recognized it yet, the iPhone is a full Mac OS X computer in your hand. The incredible quality and experience of the iPhone and iPod will lead to an explosive virtuous cycle of appl product adoption.

1 - Today's iPhone user experience will not be approached, let alone matched, for several years. Remind you of the iPod? Apple will have a 50%+ share of the high end phone mkt, making 150 million iPhones in 5 years very reachable.

2 - Apple's control over pricing will support a thriving used iPhone mkt. When iPhone 2 comes out, many 1st buyers will upgrade and easily sell their originals on eBay. This will support a surging demand for iPhone 2 (3, 4, ...) on launch days. What's not to like about explosive adoption rates at each launch? Can you spell SIZZLE?

3 - Since it is a hand computer, people at the low end, like my friend Steve, will buy it because it's portable and they will be able to eliminate the $60/mo cost of wired dsl/phone to the home. Why? They'll visit friends, Paneras, or roam to get free access to the internet and all the Web 2.0, Ajax services, VOIP phone AND email, Facebook etc... My friend would like a Full computer, but it's way too expensive for him when you include the wired connection costs. In fact, since he's going through bankruptcy, he (and all value customers) will get their prepaid plan and use the phone minutes judiciously.

4 - At the business end, with a future of 100 million + iPhones (Mac OS X) developers will line up and pay aapl for certification to run on the iPhone. aapl controls all that plays natively, just like MS, and Sony control their game machines. Apple will use this control to maintain RELIABILITY and SECURITY on the phone. The iPhone will be known as KING in security and reliability. Do you think enterprises and gov'ts might value that?

5 - (See 4 above). As large orgs STANDARDIZE on the iPhone, they will finally open the door to Mac OS X adoption in the desktop, laptop, and server spaces.

There's probably more to be said, but I hope you get the picture. Jobs and company have introduced so many huge gamechangers (Apple II, Mac, iPod, TOY STORY). This is another one and the rest of the industry will be flailing at their taillights from now on.

PS - Oh, and what do you think the iPhone means to the Google partnership? (Hint: It's already resulted in YouTube being upformatted from the current proprietary Flash to the swifter and cleaner H.264 standard.)

Regards, from a very happy aapl long!