bryanz

Apple Rallies Early as Bernstein Upgrades

"In smartphones, he thinks Apple can convert most of the iPod installed base of 120 million to 130 million to iPhones, as consumer move to converged devices."

I don't think any serious shift like this will actually happen in the US until the iPhone is available on multiple networks. I understand there's an exclusivity contract, but it will hold AAPL back in terms of units sold no matter how much money AT&T gave them.

I personally didn't like the customer service I got when I was with AT&T (they were Cingular at the time) and no matter how cool their phones are I won't go back to them. The iPhone is already compatible with T-Mobile's EDGE network, and an iPhone that would work on Verizon would be huge for their numbers. Verizon customers already like paying too much for their plans, what's another $35/month in iPhone data fees to them?

I also take issue with the numbers this analyst uses. How many Shuffles and Nanos are included in that 120-130 million number? You're going to have a hard time convincing someone who just spent $69 on a shuffle to switch to a $199 phone that adds $30+ per month onto their phone bill.

Regardless the selloff was extremely excessive all around (as evidenced by the turnaround today) and AAPL was one of the one's that would be least affected yet was punished the most.