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Report: iPhone could make or break Apples bank

Wealth management experts have banked on the iPhone as the driving force behind Apple's near-future growth -- but cautioned that the fourth major platform in the company's lineup could also eat away at the very iPod share that has helped build its recent success.

Joining comments on Apple from his fellow investment bank analyst, UBS specialist Tony Andersson on Wednesday ventured beyond the Mac, addressing the more difficult subject of the iPhone while offering high net worth financial consulting to the firm's top clients.

In a note directed only towards those private investors, the researcher remained confident that developments in Apple's cornerstone iPod and Mac sales would carry the California-based company upward, growing the former to 24 percent of the world's media player share and its share of computers by half a percentage point. Mac OS X Leopard in particular would help the Mac, he said.

However, Andersson labeled the iPhone as the real spark for Apple's flame in 2007. It would help jumpstart Apple's revenues both during the June launch of the handset in the US as well as towards the end of the year, when the device should make its first appearance in Europe.

He added that there was no reason to doubt that Apple would meet its target share for the end of next year, alluding to the company's tendency to rarely leave its product line unaltered.

"We think the iPhone can gain 1% of the worldwide market share by 2008," Andersson pointed out, "particularly since we expect more than one model in the next two years."

This optimistic forecast, however, presented a mixed blessing from the analyst's point of view. To him, the self-same explosion of iPhone sales could potentially tear people away from the iPod, creating a squeeze as shoppers are increasingly forced to choose between one or the other. Other music-savvy cellphones were also a possible threat to the iconic music jukebox and the 47 percent of profits it should generate for Apple this year, he said.

Similarly, the periods immediately before and after the iPhone's debut were also seen as treacherous paths where Apple could scarcely afford to stumble if it hoped to continue its excellent track record. "Negative news, delays in the iPhone launch, quality or usability issues" could easily damage Apple's reputation and its stock, Andersson cautioned.

The UBS specialist used this reasoning to justify issuing a "hold" rating on the stock, as the promise of the future gadget was offset by its potentially volatile side-effects.

"The recent rally of the stock reflects much of the iPhone expectations and leave little room for any negative news flow," Andersson wrote.[ View this article at AppleInsider.com ] (http://www.appleinsider.com/article.php?id=2636)
[2896 byte] By [AppleInsider] at [2007-11-16 2:50:01]
# 1 Re: Report: iPhone could make or break Apples bank
I suppose I can cross UBS off the list. If an iPhone sale means a "lost" iPod sale, then all that means is even more money for Apple. Besides, there's growing market pressure for more function convergence, if Apple can make it work, then that's another worthy market for them to tap. Apple also has plenty of money and is very profitable, so I don't see how iPhone development would have to mean hurting other divisions and other projects because they can hire more people to cover a new project, so I don't see how it has a strong chance of hurting the development of other products.
JeffDM at 2007-11-17 11:01:32 >
# 2 Re: Report: iPhone could make or break Apples bank
I am tired of hearing the same old analyst's canard that company X's new product B is a mixed blessing because it might cannibalize sales of their other product A. This refrain has been played so often that people have started to believe it. The fact is, successful manufacturers are constantly seeking to cannibalize their own sales with new product because if they aren't doing it, then somebody else will beat them to it. Cannibalizing your own sales means that you're consistently developing new, more advanced, and more desirable products.

You want a company that doesn't do a good job of cannibalizing its own product? Take a look at Motorola and it's boom and bust cell phone cycle.
tundraboy at 2007-11-17 11:02:32 >
# 3 Re: Report: iPhone could make or break Apples bank
Everytime I read this... The fact is the iPhone doesn't replace the iPod or even the iPod nano. There's a lot of people out there still who don't want to have a cellphone or have to sign mutl year agreements...

If the iPhone eventually becomes flexible, so you can use any carrier, prepaid plans, etc... then it might be close to being bigger than the iPod. But the iPhone will likely have to be charged everyday... doesn't have as much storage as an iPod, it's bulkier than the nano. If they ever release a widescreen ipod with all the features of the iPhone except the phone part, I'd buy it... :)
bravedeer at 2007-11-17 11:03:31 >
# 4 Re: Report: iPhone could make or break Apples bank
And AAPL isn't also gaining because of the best laptops on the market, Intel Macs with Parallels, new OS Leopard due soon and new 8 core, new FCPro Suite due and new CS3 and ... Oh sorry it's just due to iPhone how silly of me ...
digitalclips at 2007-11-17 11:04:34 >
# 5 Re: Report: iPhone could make or break Apples bank
I am tired of hearing the same old analyst's canard that company X's new product B is a mixed blessing because it might cannibalize sales of their other product A. This refrain has been played so often that people have started to believe it. The fact is, successful manufacturers are constantly seeking to cannibalize their own sales with new product because if they aren't doing it, then somebody else will beat them to it. Cannibalizing your own sales means that you're consistently developing new, more advanced, and more desirable products.

You want a company that doesn't do a good job of cannibalizing its own product? Take a look at Motorola and it's boom and bust cell phone cycle.

This is THE point. This what they said about the mini->nano transition. 'They're replacing such a successful product...' blah blah blah. This is another area the Apple really excels at the moment. They don't wait for a product to be on the decline and dragging them down to find 'the next great thing' they go ahead and find it beforehand. tundra is right, you want them to cannibalize their own sale, at the right time, and with something even better.
physguy at 2007-11-17 11:05:33 >
# 6 Re: Report: iPhone could make or break Apples bank
To him, the self-same explosion of iPhone sales could potentially tear people away from the iPod, creating a squeeze as shoppers are increasingly forced to choose between one or the other.

Does this really matter? It's not like Apple would be losing out on a sale. He's trying to separate the products when really they're the same, albeit one with more features. What would be negative is for other companies losing out, being when someone is looking to upgrade their phone AND iPod they might turn to Apple for an all-in-one solution.
crees! at 2007-11-17 11:06:33 >
# 7 Re: Report: iPhone could make or break Apples bank
What the iPhone truly needs to succeed, in view of its obvious disadvantages (high price, limitation to Cingular, small memory for music/video, lack of voice dialing, etc.) is a KILLER APP.

Such an app could well be DICTATION-OCR SOFTWARE (since a microphone is already present, and a stripped down OS X) . . . software that would let a user dictate an outgoing Email, or dictate text that could go into a rudimentary word processor (like TEXTEDIT), and thence to a memory file or, by any one of several means, to a printer if desired.

Then that device, trademark issues permiting, could be renamed the POCKET MAC !

And then that software could well be incorporated into LEOPARD, which would give it the boost needed to stand out as more than a slight improvement over TIGER !
AlFeldzamen at 2007-11-17 11:07:37 >
# 8 Re: Report: iPhone could make or break Apples bank
I love how these analysts say "we expect the iPhone to take 1% of the worldwide cellphone market through 2008" and, I believe from yesterday, "we expect Apple to sell 10M iPhones through 2008".

That is what Jobs said Apple's predictions are back at MacWorld 2007! Com'n people, If you aren't gonna do any real number crunching at least start off with a courteous "We agree with what Steve Jobs said...".
solipsism at 2007-11-17 11:08:38 >
# 9 Re: Report: iPhone could make or break Apples bank
This is "anal-ysts" trying to talk the price back down to where they should have bought aapl, but didn't.
Apple doesn't sell iphones now, so if they sold zero iphones, they would be in the same financial situation they are now... looking great for Mac sales now that CS3 will be shipping, looking great for ipod sales because nothing can touch it (wait until the touch screen ipods!), looking great for software - Final Cut Studio gettin a great update at NAB (I didn't say nothin').
All in all, buy Apple stock now!
studiomusic at 2007-11-17 11:09:35 >
# 10 Re: Report: iPhone could make or break Apples bank
What the iPhone truly needs to succeed, in view of its obvious disadvantages (high price, limitation to Cingular, small memory for music/video, lack of voice dialing, etc.)

It really doesn't have voice dialing? Man, I need that! My Samsung has such great voice recognition, no learning, it just works. If this is true, I'm very disappointed.:( .
mstone at 2007-11-17 11:10:37 >
# 11 Re: Report: iPhone could make or break Apples bank
Apple is Doomed!!!!!

:lol:
TednDi at 2007-11-17 11:11:44 >
# 12 Re: Report: iPhone could make or break Apples bank
It really doesn't have voice dialing? Man, I need that! My Samsung has such great voice recognition, no learning, it just works. If this is true, I'm very disappointed.:( .

Oh and it doesn't make coffee or walk the dog either, :(

I assume your Samsung has Safari running along with Address Book, Listen to voice mail in any order feature, touch controls and all the other zillion new things iPhone does have then? :rolleyes:
digitalclips at 2007-11-17 11:12:42 >
# 13 Re: Report: iPhone could make or break Apples bank
Oh and it doesn't make coffee or walk the dog either, :(

I assume your Samsung has Safari running along with Address Book, Listen to voice mail in any order feature, touch controls and all the other zillion new things iPhone does have then? :rolleyes:

No but I don't think I'd be able to use that while driving anyway. I buy everything Apple and that short coming won't stop me from buying one but it will not replace a cell phone that has voice dialing. I just can't get by without it. Did I mention I really really need voice dialing.
mstone at 2007-11-17 11:13:38 >
# 14 Re: Report: iPhone could make or break Apples bank
No but I don't think I'd be able to use that while driving anyway. I buy everything Apple and that short coming won't stop me from buying one but it will not replace a cell phone that has voice dialing. I just can't get by without it. Did I mention I really really need voice dialing.

Ok you are forgiven :)

Thinking about this further ... this is a Mac of sorts, hard to believe some bright spark won't add this feature later.
digitalclips at 2007-11-17 11:14:44 >
# 15 Re: Report: iPhone could make or break Apples bank
I think there is no doubt that the iPhone sales will to some extent replace iPod sales as iPhone owners realize that they have no need for an additional device in the form of the iPod.

Customers moving to a different, newer product from the same company as such does not affect profits as long as number of customers, units per customer, and margins are at least maintained (and Apple seems very capable of achieving and surpassing these targets).

The main concern I would see, that having to deal with network operators, their tie-ins, their mandatory contracts, and their subsidies of handsets might mess up Apple's operational freedom such as to reduce their ability to sell ever higher number of devices at generous margins.
noirdesir at 2007-11-17 11:15:46 >
# 16 Re: Report: iPhone could make or break Apples bank
I think there is no doubt that the iPhone sales will to some extent replace iPod sales as iPhone owners realize that they have no need for an additional device in the form of the iPod.
.

Maybe some but not many. I bet my wife and me are typcal of many iPod owners. We have both of our 60 GIG iPods almost full of our CDs and Audio books. We use them to connect to other Hi Fi systems as well as listen in Cars and on the beach. I don't think iPhones (which we will get) can replace this functionality nor would we want them to really. Maybe one day when an iPhone has a massive storage capacity?
digitalclips at 2007-11-17 11:16:39 >
# 17 Re: Report: iPhone could make or break Apples bank
I think there is no doubt that the iPhone sales will to some extent replace iPod sales as iPhone owners realize that they have no need for an additional device in the form of the iPod.

The iPhone is only a viable replacement/substitute for the shuffle or nano - not the 'real' iPods with HD's It just hasn't got enough capacity.
cnocbui at 2007-11-17 11:17:48 >
# 18 Re: Report: iPhone could make or break Apples bank
Sure there is overlap between the iPhone and iPod markets, but... not one-for-one. Not at all.

I for one have always thought iPods were useless. I have no need for one and frankly can't understand why people spend so much money on them. But for years I have been dying to get something half as good as the iPhone.

On the flip-side, there are plenty of people who have 2, 3, or more iPods. Are these people going to stop buying iPods just because they have an iPhone? They really might not want to take their $500 iPhone out on the bike trail for some blading... when they could take a relatively cheap, unobtrusive Shuffle instead.
TheToe at 2007-11-17 11:18:41 >
# 19 Re: Report: iPhone could make or break Apples bank
Ok you are forgiven :)
Thinking about this further ... this is a Mac of sorts, hard to believe some bright spark won't add this feature later.

ummm, at the risk of flogging the proverbial deceased equine, its not released (nor probably even feature frozen) yet. We don't know what is or isn't in the final release.

As for killer app, does any phone have 'personal blacklisting'?
Voice spammer burns me once, but with one click I prevent future calls from even getting to my voicemail. Seems simple enough, and boy, would I love that.
GQB at 2007-11-17 11:19:48 >
# 20 Re: Report: iPhone could make or break Apples bank
Apple is Doomed!!!!!

:lol:

teh doomed!
Ireland at 2007-11-17 11:20:51 >
# 21 Re: Report: iPhone could make or break Apples bank
ummm, at the risk of flogging the proverbial deceased equine, its not released (nor probably even feature frozen) yet. We don't know what is or isn't in the final release.

As for killer app, does any phone have 'personal blacklisting'?
Voice spammer burns me once, but with one click I prevent future calls from even getting to my voicemail. Seems simple enough, and boy, would I love that.

I think you answered your second paragraph with your first ;)
digitalclips at 2007-11-17 11:21:44 >
# 22 Re: Report: iPhone could make or break Apples bank
i agree about voice dialing.
if i'm driving i need to be able to press a button on a headset, say a name, and that's it.
i can't be trying to use a NON-TACTILE phone to make calls while driving.
i can't believe apple would leave this feature out.

as for this topic... apple profit on iPhone vs. apple profit on iPod?
yeah, they're doomed if people can choose to upgrade to a product with a bigger profit margin. just doomed.
if only the topic were "expert says iPhone will either hurt, help, or not affect apple profit"
desarc at 2007-11-17 11:22:54 >
# 23 Re: Report: iPhone could make or break Apples bank
The iPhone is only a viable replacement/substitute for the shuffle or nano - not the 'real' iPods with HD's It just hasn't got enough capacity.

Maybe some but not many. [...] Maybe one day when an iPhone has a massive storage capacity?

I absolutely agree. Mainly nano user might consider leaving their nanos at home and only travel with their iPhone. I was thinking longer term when iPhones had a large enough capacity.

The only reason why I might not get an iPhone right away (apart from money) is its size. My cellphone is always in my trousers pocket, in order for me to be able to notice the vibrational alarm. As long as their are cell-phones smaller than an iPhone, I guess I will prefer them. Once the iPhone shrinks to the size of the nano, I'll definitely get one, regardless of price.
noirdesir at 2007-11-17 11:23:55 >
# 24 Re: Report: iPhone could make or break Apples bank
As for killer app, does any phone have 'personal blacklisting'?
Voice spammer burns me once, but with one click I prevent future calls from even getting to my voicemail. Seems simple enough, and boy, would I love that.

Now that you mention it, i'd love to have an option--like with AIM--to only receive calls from people in my Address Book.
solipsism at 2007-11-17 11:24:55 >
# 25 Re: Report: iPhone could make or break Apples bank
They really might not want to take their $500 iPhone out on the bike trail for some blading... when they could take a relatively cheap, unobtrusive Shuffle instead.

And another phone? Some people originally bought their first mobile phone partly because they want something in case of roadside emergencies in their car. If you take a nasty fall in a secluded part of a park, then one might want a phone to take along. While we're at it, any phone that plays music can be good enough if it just needs to make a call and play tunes.
JeffDM at 2007-11-17 11:25:58 >
# 26 Re: Report: iPhone could make or break Apples bank
Ok you are forgiven :)

Thinking about this further ... this is a Mac of sorts, hard to believe some bright spark won't add this feature later.

Just wait until all of the major auto companies start talking about iPhone integration.. :lol:
SpamSandwich at 2007-11-17 11:26:58 >
# 27 Re: Report: iPhone could make or break Apples bank
Just wait until all of the major auto companies start talking about iPhone integration.. :lol:

BMW has already mentioned it. They should have it by the time the iPhone ships. As for the other manufacurers and 3rd-party stereo manufactuers, it won't be hard to do since the dongle is exactly the same. Just a software change, which I'm sure Apple is more than willing to help out with.

PS: Has anyone heard of Zune integration in cars? Iam getting ahead of myself here, I should be asking if anyone even knows someone with a Zune. :D
solipsism at 2007-11-17 11:27:53 >
# 28 Re: Report: iPhone could make or break Apples bank
BMW has already mentioned it. They should have it by the time the iPhone ships. As for the other manufacurers and 3rd-party stereo manufactuers, it won't be hard to do since the dongle is exactly the same. Just a software change, which I'm sure Apple is more than willing to help out with.

PS: Has anyone heard of Zune integration in cars? Iam getting ahead of myself here, I should be asking if anyone even knows someone with a Zune. :D

I think the Russians have put together a Lada with Zune.
digitalclips at 2007-11-17 11:28:59 >
# 29 Re: Report: iPhone could make or break Apples bank
BMW has already mentioned it. They should have it by the time the iPhone ships. As for the other manufacurers and 3rd-party stereo manufactuers, it won't be hard to do since the dongle is exactly the same. Just a software change, which I'm sure Apple is more than willing to help out with.

Was there any change at all? The most I can think of is maybe adding more functionality, but I'd think that existing units should work just fine if Apple was smart enough to keep backwards compatibility. If I spent hundreds of dollars on iPod integration, I would not want to spend hundreds more just to make the existing system work with a new device in the same product line.
JeffDM at 2007-11-17 11:29:53 >
# 30 Re: Report: iPhone could make or break Apples bank
I for one have always thought iPods were useless. I have no need for one and frankly can't understand why people spend so much money on them.

I am a real music lover and I think the iPod is one of the best things to ever happen in music playback systems.

So much money? An iPod can replace what used to be your walkman, your in car CD changer and your home Hi-Fi's CD player. Compared to the combined cost of these three products an iPod is cheap!

This is exactly how I use mine. I guess if you don't listen to music much an iPod could be useless.
cnocbui at 2007-11-17 11:30:56 >
# 31 Re: Report: iPhone could make or break Apples bank
I think the Russians have put together a Lada with Zune.
And I here that the French have put together a Renault and a Zune.

Was there any change at all? The most I can think of is maybe adding more functionality, but I'd think that existing units should work just fine if Apple was smart enough to keep backwards compatibility. If I spent hundreds of dollars on iPod integration, I would not want to spend hundreds more just to make the existing system work with a new device in the same product line.
I would hope so, but since it uses a different OS I have no way of knowing if they were able to keep it that simple. I've considered that they found it easier to make all the software changes in iTunes instead of altering how the iPhones transmits/recieves audio info.
solipsism at 2007-11-17 11:31:57 >
# 32 Re: Report: iPhone could make or break Apples bank
Yet another shoddy headline by AI. Where in the analyst's words does he say verbatim " iPhone could make or break Apple's bank". AI does no't seem to understand that it''s headlines are often cited on financial sites like Forbes, Google, WSJ, NYT, IBD, Yahoo,etc and that people who peruse those sites often don't read the cited articles, they just note the headline. In this case, AI (a well known Apple evangelist site) has created a headline with a negative connotation. This is , IMO, shoddy journalism.

Moving on from my rant on yet another poor AI headline, since one iPhone equals one cell phone plus one Ipod, some of the relevant financial questions are;

*What are the profit margins on the cell phone part of the iPhone?
*How many iPhones will Apple sell?

New additional Apple profit equals profit margin on the cell phone part of the iPhone times the number of iPhones sold.

*What are the profit margins on the Ipod part of the iPhone?
*How do the profit margins on the Ipod part of the iPhone compare to a "regular" Ipod?

Apple hardware Ipod profit then equals [profit margin per iPhone Ipod times number of iPhones sold] PLUS .

Finally, one has to ask whether the iPhone will boost iTunes sales. While this is unknown at this point in time, assuming that iPhone owners will have ready access to the iTunes store, will they buy [I]more music and/or videos while at work, at play, in the airport, at a boring wedding reception, at the in-laws for Thanksgiving dinner,etc ?
lfe2211 at 2007-11-17 11:32:58 >
# 33 Re: Report: iPhone could make or break Apples bank
....
solipsism at 2007-11-17 11:34:00 >
# 34 Re: Report: iPhone could make or break Apples bank
What is being said here doesn't make sense, as many others have mentioned. Here's a few simple reasons why.

1) If you cannabilize one of your other products with one that makes you more money, then you are doing your job. If you do it with one that makes you less money, then you have problems. Cannabilization can hurt you if a lower margin product eats away at your higher margin products. I mean geez, is this stuff really that hard for analyst to figure out?

2) As stated, they expect the iPhone to maybe gain 1% of the mobile phone market? Doesn't that like leave 99% of the mobile phone market as potential iPod customers even if you make the poor assumption that every iPhone customer won't buy an iPod? How do they lose here, because the only way they could eat away more iPod market share is to grow the 1% to so 5%, and if they do that (which they won't) then they'll nearly own the world.

Am I missing something here?

IQ78
IQ78 at 2007-11-17 11:35:04 >
# 35 Re: Report: iPhone could make or break Apples bank
The headline suggests the the iPhone has the potential to bankrupt Apple. That's absurd at face value.
cherrypop at 2007-11-17 11:35:59 >
# 36 Re: Report: iPhone could make or break Apples bank
And AAPL isn't also gaining because of the best laptops on the market, Intel Macs with Parallels, new OS Leopard due soon and new 8 core, new FCPro Suite due and new CS3 and ... Oh sorry it's just due to iPhone how silly of me ...

Yeah, it is odd. Mac CPU sales up 72% year over year in March, and an iPhone that doesn't perform well will sink Apple to the bottom of the barrel. Jeesh.

Lets see, I have 3-4 functioning Mac laptops and a couple desktops (if a Mac Mini qualifies). Then I have a couple iPods (not counting the ones I've given away). iPods can be used for so many things that a cellphone is not going to get me to dump the iPods. In fact, I may get a Shuffle just for audio books/podcasts when traveling.

I really think some of these analysts spend too much time talking to other analysts rather than finding out how people REALLY use technology.

For me and other people I have talked to about the iPhone, the main reason to buy an iPhone has NOTHING whatever to do with SONGS!

iPhone represents the clean integration between a Mac and the Internet capability that has people stoked. Secondly with the prospect of communcations & computing power in your pocket on little applications means that you can leave your laptop at home or work during lunch.
BoC at 2007-11-17 11:37:00 >
# 37 Re: Report: iPhone could make or break Apples bank
Yeah, it is odd. Mac CPU sales up 72% year over year in March, and an iPhone that doesn't perform well will sink Apple to the bottom of the barrel. Jeesh.

Lets see, I have 3-4 functioning Mac laptops and a couple desktops (if a Mac Mini qualifies). Then I have a couple iPods (not counting the ones I've given away). iPods can be used for so many things that a cellphone is not going to get me to dump the iPods. In fact, I may get a Shuffle just for audio books/podcasts when traveling.

I really think some of these analysts spend too much time talking to other analysts rather than finding out how people REALLY use technology.

For me and other people I have talked to about the iPhone, the main reason to buy an iPhone has NOTHING whatever to do with SONGS!

iPhone represents the clean integration between a Mac and the Internet capability that has people stoked. Secondly with the prospect of communcations & computing power in your pocket on little applications means that you can leave your laptop at home or work during lunch.

Cpu sales are up 72% since last March? Where are you getting your numbers from? Apple hasn't even announced the numbers yet.
melgross at 2007-11-17 11:38:01 >
# 38 Re: Report: iPhone could make or break Apples bank
Yeah, it is odd. Mac CPU sales up 72% year over year in March, and an iPhone that doesn't perform well will sink Apple to the bottom of the barrel. Jeesh.
... ... ...
For me and other people I have talked to about the iPhone, the main reason to buy an iPhone has NOTHING whatever to do with SONGS!

nothing? it's an iPod video with a phone. that's HALF songs/videos. i don't care about surfing the net on a tiny screen, having to zoom in and out of web pages.

i want a "convergence device" or all-in-one or whatever they're being called for one simple reason:
Less Stuff to carry in my front pocket. eventually they will get to where i WISH they were, but the iPhone is good enough for me to buy in now.
desarc at 2007-11-17 11:39:04 >
# 39 Re: Report: iPhone could make or break Apples bank
You want a company that doesn't do a good job of cannibalizing its own product? Take a look at Motorola and it's boom and bust cell phone cycle.

I'm just wondering - how many people out there currently have either a smartphone or a phone that has "decent" music playback features, AS WELL AS an iPod? Chances are, there's a good piece of the market that will end up having an iPod (especially once the widescreen iPod comes out) as well as an iPhone. They're similar devices, and there will likely be some cannibalization, but I don't think it'll be significant.

Besides, do these "analysts" REALLY think that Steve didn't consider this yet?
jamezog at 2007-11-17 11:40:05 >
# 40 Re: Report: iPhone could make or break Apples bank
Maybe the iPhone will break Apple's bank by stuffing it
full of so much money the doors blow out.
quinney at 2007-11-17 11:41:12 >
# 41 Re: Report: iPhone could make or break Apples bank
What is being said here doesn't make sense, as many others have mentioned. Here's a few simple reasons why.

1) If you cannabilize one of your other products with one that makes you more money, then you are doing your job. If you do it with one that makes you less money, then you have problems. Cannabilization can hurt you if a lower margin product eats away at your higher margin products. I mean geez, is this stuff really that hard for analyst to figure out?

2) As stated, they expect the iPhone to maybe gain 1% of the mobile phone market? Doesn't that like leave 99% of the mobile phone market as potential iPod customers even if you make the poor assumption that every iPhone customer won't buy an iPod? How do they lose here, because the only way they could eat away more iPod market share is to grow the 1% to so 5%, and if they do that (which they won't) then they'll nearly own the world.

Am I missing something here?

IQ78

Well said. The term is UP-SELL. Marketing folks know it, you should too. iPods are commodity items with commodity profit margins. Apple is looking to increase their profit margins while expanding the total market size. Everyone has a cell phone. If apple can deliver on the hype, they will have a market leading high profit high volume phone. Win-win-win.

This isn't any underpants-gnome marketing plan. Apple want to sell to a larger market and cell phones are where it's at.
mmmdoughnuts at 2007-11-17 11:42:14 >
# 42 Re: Report: iPhone could make or break Apples bank
I'm just wondering - how many people out there currently have either a smartphone or a phone that has "decent" music playback features, AS WELL AS an iPod? Chances are, there's a good piece of the market that will end up having an iPod (especially once the widescreen iPod comes out) as well as an iPhone. They're similar devices, and there will likely be some cannibalization, but I don't think it'll be significant.

Besides, do these "analysts" REALLY think that Steve didn't consider this yet?

Apple themselves could be aware of risk. Companies don't always take the safe path.

They could be thinking that the upside is more than the downside.

But, they could be wrong.
melgross at 2007-11-17 11:43:08 >
# 43 Re: Report: iPhone could make or break Apples bank
The UBS specialist used this reasoning to justify issuing a "hold" rating on the stock, as the promise of the future gadget was offset by its potentially volatile side-effects.

I am tired of hearing the same old analyst's canard that company X's new product B is a mixed blessing because it might cannibalize sales of their other product A. This refrain has been played so often that people have started to believe it. The fact is, successful manufacturers are constantly seeking to cannibalize their own sales with new product because if they aren't doing it, then somebody else will beat them to it. Cannibalizing your own sales means that you're consistently developing new, more advanced, and more desirable products.

You want a company that doesn't do a good job of cannibalizing its own product? Take a look at Motorola and it's boom and bust cell phone cycle.

BINGO! You hit the nail exactly on the head.

And you're right, it is SO very tiresome to hear some idiot analyst get panicky because Apple is doing the EXACT RIGHT THING here. While it's very debatable as to what extent the iPhone will cannibalize iPod sales (my guess is 'not that much', especially once a touchscreen 6G iPod comes out), it's crystal clear, as you state, that if Apple didn't cannibalize it's own products, someone else would do it for them. Duhhh, analysts. :rolleyes:

The sad thing? If Apple DIDN'T come out with the iPhone, we'd likely have this exact same UBS halfwit crying about how Apple is "blind to threat of multifunction devices" and we'd be hearing about how music cellphones are going to eat the iPod's lunch. In fact, we WERE hearing that before the iPhone was announced. So to cry about iPhone potentially hurting Apple is just dumb, REALLY dumb 'analysis'. :err:

I personally am all too happy to point out when Apple's straying off the path, but this is so obviously not one of those times. The iPhone had to be made, so that Apple had a presence in both dedicated players and multifunction devices, and Apple created a damn good, game-changing product, every bit the equal of the iPod. Just ask Motorola, Nokia, Samsung, Microsoft, and all the others that are scrambling to respond to it.

I put a 'Hold' on accepting any more advice this particular UBS dumbass. :(

PS- The AppleInsider headline ("iPhone could make or break Apple's bank") was also overstated and sensationalist. Don't get too desperate for hits, guys.

http://michelemiller.blogs.com/photos/uncategorized/dumb_people_jpeg.jpg

.
TBaggins at 2007-11-17 11:44:14 >
# 44 Re: Report: iPhone could make or break Apples bank
The headline suggests the the iPhone has the potential to bankrupt Apple. That's absurd at face value.

MAYBE IT IS POSSIBLE... hmmm

SCENARIO:

Apple iPHONE goes on sale. 30 people buy them and start talking crap about the iPHONE which spreads like WILD FIRE. Next thing you know, everybody is talking crap about Apple in general. They have the first APPLE HATERS CLUB (aka... the AHC). They have their first meeting at Commiskey Park (now U.S. Cellular Field) in Chicago where they create a huge pile of Apple products, in fact, a huge pile of EVERY apple product.

They set fire to iPILE and the whole world forgets Apple ever existed... just like disco.

:(

Dear God,

Do not let the AHC form.

Love,

ME
donlphi at 2007-11-17 11:45:08 >
# 45 Re: Report: iPhone could make or break Apples bank
And I here that the French have put together a Renault and a Zune.

I would hope so, but since it uses a different OS I have no way of knowing if they were able to keep it that simple. I've considered that they found it easier to make all the software changes in iTunes instead of altering how the iPhones transmits/recieves audio info.

The iPhone actually has an emulation layer built in; it emulates the pixio stuff. Rest easy. All taken care of.
RnSK at 2007-11-17 11:46:17 >
# 46 Re: Report: iPhone could make or break Apples bank
I would hope so, but since it uses a different OS I have no way of knowing if they were able to keep it that simple. I've considered that they found it easier to make all the software changes in iTunes instead of altering how the iPhones transmits/recieves audio info.

The audio and video is currently sent as an analog signal out certain pins, that's not hard to get that right. Keeping the control system shouldn't be that hard, I don't think the signalling is that difficult to reproduce on a different piece of hardware.
JeffDM at 2007-11-17 11:47:16 >
# 47 Re: Report: iPhone could make or break Apples bank
The iPhone actually has an emulation layer built in; it emulates the pixio stuff. Rest easy. All taken care of.

If we weren't talking about an Apple product, I wouldn't be taking your word at face value.
solipsism at 2007-11-17 11:48:13 >
# 48 Re: Report: iPhone could make or break Apples bank
What a bore, you guys have all put holes in this guy's propaganda, nothing left for me. :mad: :lol:
iPeon at 2007-11-17 11:49:16 >
# 49 Re: Report: iPhone could make or break Apples bank
it is reported that battery life is a bit on the low side (40 min). Why? power loss (static leak)? LCD driven to black all the time? Is the phone hot? (shouldn't be if it is handheld)...any idea? thx.
1st at 2007-11-17 11:50:17 >
# 50 Re: Report: iPhone could make or break Apples bank
it is reported that battery life is a bit on the low side (40 min). Why? power loss (static leak)? LCD driven to black all the time? Is the phone hot? (shouldn't be if it is handheld)...any idea? thx.

Where did you read that? I don't think anyone outside of Apple and Cingular's CEO have had any real time with the phone. The official remarks are that the battery lasts for up to 5 hours for talk, video and browsing & up to 16 hours for audio playback.

In years past Apple tended to exaggerate the longevity of their batteries, but the last 2-3 years Apple has been very accurate, often being slightly under the actual time.

http://www.apple.com/iphone/technology/specs.html
solipsism at 2007-11-17 11:51:16 >
# 51 Re: Report: iPhone could make or break Apples bank
The iPhone will have voice dialing. Cingular offers voice dialing through an online server access. You just speed dial *8 (or say voice dial) and you asked to speak the person's name and phone number (mobile, work, home or whatever). The address book info is updated on their website. The information can be uploaded or updated by exporting the data from Address Book to the site.

Pretty nice feature. Hopefully they'll improve upon the updating feature before iPhone arives - it's a little cumbersome.
dkrieb at 2007-11-17 11:52:18 >
# 52 Re: Report: iPhone could make or break Apples bank
Where did you read that? I don't think anyone outside of Apple and Cingular's CEO have had any real time with the phone. The official remarks are that the battery lasts for up to 5 hours for talk, video and browsing & up to 16 hours for audio playback.

In years past Apple tended to exaggerate the longevity of their batteries, but the last 2-3 years Apple has been very accurate, often being slightly under the actual time.

http://www.apple.com/iphone/technology/specs.html
=======

http://www.theinquirer.net/default.aspx?article=38757
1st at 2007-11-17 11:53:16 >
# 53 Re: Report: iPhone could make or break Apples bank
Early adopters will pay he full whack price but that will only be a few.

Unless the price comes down significantly the iphone will flop and they wont even meet half their target let alone 1%.
bavlondon2 at 2007-11-17 11:54:27 >
# 54 Re: Report: iPhone could make or break Apples bank
Anything written about Apple in The Inquirer or by John Dvorak about Apple should be taken with a ton of salt. Dvorak has admitted to writing negative things about Apple for the attention.
TenoBell at 2007-11-17 11:55:27 >
# 55 Re: Report: iPhone could make or break Apples bank
Early adopters will pay he full whack price but that will only be a few.

Unless the price comes down significantly the iphone will flop and they wont even meet half their target let alone 1%.

Sorry. But that's crap. I've talked to WAY too many people I know personally who can't wait to buy the iPhone.

And the price is never going drop. The features and capacity will continue to rise in order to keep the pricing the same. Have iPods really ever dropped in price? It was $400 when it debuted and it's $400 today. That's always been Apple's M.O.

Just because you're broke and can't afford one doesn't mean you should whine about it.
Northgate at 2007-11-17 11:56:25 >
# 56 Re: Report: iPhone could make or break Apples bank
And the price is never going drop. The features and capacity will continue to rise in order to keep the pricing the same. Have iPods really ever dropped in price? It was $400 when it debuted and it's $400 today. That's always been Apple's M.O.

Are you trying to make a point that's the opposite of what you are saying here? There is no $400 iPod right now. $400 was the original price for the only model, now there are six models. In functionality and capacity, the closest comparable model to the original is the $200 nano.
JeffDM at 2007-11-17 11:57:28 >
# 57 Re: Report: iPhone could make or break Apples bank
Anything written about Apple in The Inquirer or by John Dvorak about Apple should be taken with a ton of salt. Dvorak has admitted to writing negative things about Apple for the attention.

Dvorak is a putz. He's like the Ann Coulter of tech.
SpamSandwich at 2007-11-17 11:58:27 >
# 58 Re: Report: iPhone could make or break Apples bank
Sorry. But that's crap. I've talked to WAY too many people I know personally who can't wait to buy the iPhone.

And the price is never going drop. The features and capacity will continue to rise in order to keep the pricing the same. Have iPods really ever dropped in price? It was $400 when it debuted and it's $400 today. That's always been Apple's M.O.

Just because you're broke and can't afford one doesn't mean you should whine about it.

"Nancy GohringFri Feb 23, 11:47 AM ET

Consumers aren't willing to pay what Apple may ask for the iPhone, but if the price drops they'll switch their mobile service to AT&T in order to get it, according to results of a survey released Thursday.

Online market research firm Compete Inc. surveyed 379 people in the U.S., most of whom had heard of the iPhone and have shopped for an iPod, to find out how interested they are in the device to produce the uncommissioned report. The iPhone is a combined music player and cell phone that Apple plans to start selling in the U.S. in June.

Among the 26 percent of respondents who said they're likely to buy an iPhone, only 1 percent said they'd pay $500 for it. When Apple introduced the iPhone in January, it said it would cost $500 on the low end.

Forty-two percent of those who said they're likely to buy the phone said they'd pay $200 to $299.

The iPhone will be available only to subscribers of Cingular Wireless, now part of AT&T. In a blow to the operator's competitors, 60 percent of those in the survey who said they were likely to buy the phone said they'd switch their mobile operator in order to get it.

While the iPhone has been discussed as a competitor to other handsets like Research In Motion's BlackBerry, the two serve very different markets, said Andy Neff, an analyst at Bear Stearns who participated in a conference call to discuss the results of the study. "Even though there's talk about this as an alternative to RIM, it's not a corporate product," he said. Instead, the iPhone is an indication of a broad shift toward smartphones and the emergence of niches within the category, he said.

The analysts were split on what price they think the device will ultimately retail for. Operators recently haven't been discounting phones in the similar price range as the iPhone, said Phil Cusick, an analyst at Bear Stearns.

However, Apple has been known to announce a product with one price and ultimately sell it for less. Apple TV, for example, was expected to cost $399 but sells for $299, he said.

The phone may start out around $500 because early adopters will pay that, said Neff. But pricing will likely drop by $100 to $200 to target the mass market, he said"

-------------------------------

Dont assume what I can and cant afford. You only go to make yourself look childish and demeaning. (and dumb)

Go to a forum for younger iphone fans and when you learn some manners then come back here.
bavlondon2 at 2007-11-17 11:59:31 >
# 59 Re: Report: iPhone could make or break Apples bank
Dvorak is a putz. He's like the Ann Coulter of tech.

No, he's not that bad. He hasn't gotten near the point of writing a book on how to talk to Mac users or books suggesting that Mac users are a conspiracy of evil.

I think the problem is that too many Mac users were painting targets onto themselves by having this psychological need to defend their platform whenever it's being ridiculed. Anyone that wants page hits can just write a story ridiculing the platform and the page hits just roll in when dozens of mac sites link to it. I don't think Dvorak can be faulted too much for exploiting those that make themselves so easily exploitable.
JeffDM at 2007-11-17 12:00:23 >
# 60 Re: Report: iPhone could make or break Apples bank
Anything written about Apple in The Inquirer or by John Dvorak about Apple should be taken with a ton of salt. Dvorak has admitted to writing negative things about Apple for the attention.

Even worse than that or funnier depending on your point of view . Dvorak the Maverick (DTM) often reverses his position. He loves to bust Mac chops. Never quote DTM to support an argument because someone else can always find a diametrically opposing quote from him.

Here he is on YouTube

http://www.youtube.com/watch?v=gOHzHVF-4Mg
lfe2211 at 2007-11-17 12:01:24 >
# 61 Re: Report: iPhone could make or break Apples bank
Dont assume what I can and cant afford. You only go to make yourself look childish and demeaning. (and dumb)

Go to a forum for younger iphone fans and when you learn some manners then come back here.

That's Nancy Fohring's opinion. Nothing more. And you were comletely flippant in your original position as well. So there's plenty of 'tude to go around. Early adopters a "whack"?

I've been around here a helluva lot longer than you have. You better grow a thicker skin if you want to last.
Northgate at 2007-11-17 12:02:33 >
# 62 Re: Report: iPhone could make or break Apples bank
I don't think Dvorak can be faulted too much for exploiting those that make themselves so easily exploitable.

Please. Does Dvorak really need apologists? He's a douche and he probably knows he's a douche... he just doesn't care. :(

Yes, Mac fans do set themselves up to be exploited by his ilk, but even so, if you do the exploiting, you're still a douche. Degree of difficulty in doing the exploiting doesn't really figure into it, it's the act that counts. :\

http://www.geekculture.com/joyoftech/joyimages/789.gif

http://forums.macosxhints.com/showthread.php?t=51694

.
TBaggins at 2007-11-17 12:03:28 >
# 63 Re: Report: iPhone could make or break Apples bank
"Nancy GohringFri Feb 23, 11:47 AM . Consumers aren't willing to pay what Apple may ask for the iPhone, but if the price drops they'll switch their mobile service to AT&T in order to get it, according to results of a survey released Thursday. Online market research firm Compete Inc. surveyed 379 people in the U.S.,.....

I'm going to have to rant yet again about shoddy journalism. The Nancy Gohring article quoted by bavlondon2 is one more example. As I read her article, my thoughts were similar to those expressed very well by David Demaree in his article entitled Damned Lies Redux. The title is a reference to the well-known saying which was part of a phrase attributed to Benjamin Disraeli and popularized in the U.S. by Mark Twain: There are three kinds of lies: lies, damned lies, and statistics. The semi-ironic statement refers to the persuasive power of numbers, and succinctly describes how even accurate statistics can be used to bolster inaccurate arguments.

Since Demaree articulates my thoughts so well, I'll just let his words speak for themselves.

http://practicalmadness.com/2007/02/damned_lies_red
lfe2211 at 2007-11-17 12:04:33 >
# 64 Re: Report: iPhone could make or break Apples bank
PS- Video of Dvorak basically admitting that he's a douchebag:

http://www.youtube.com/watch?v=SAWDYaWAVQQ&mode=related&search=

.
TBaggins at 2007-11-17 12:05:32 >
# 65 Re: Report: iPhone could make or break Apples bank
Please. Does Dvorak really need apologists? He's a douche and he probably knows he's a douche... he just doesn't care. :(

Yes, Mac fans do set themselves up to be exploited by his ilk, but even so, if you do the exploiting, you're still a douche. Degree of difficulty in doing the exploiting doesn't really figure into it, it's the act that counts. :\

No, I don't think that he he really cares. The problem here is that trolling Mac users is so easy and profitable that the only way to change his behavior is convince Mac users to not take the bait so easily.
JeffDM at 2007-11-17 12:06:39 >
# 66 Re: Report: iPhone could make or break Apples bank
Sorry. But that's crap. I've talked to WAY too many people I know personally who can't wait to buy the iPhone.

And the price is never going drop.
Huh? The price for the top-of-the-line iPhone may not drop much, but knowing that the vast midrange of the market will never pay those prices, would not Apple eventually release other models of iPhone that are cheaper? :?:

The iPod parallel is pretty obvious... the top-of-the-line iPod is still priced relatively high, but Apple introduced the Mini, Shuffle, and Nano to expand the iPod into lower-price points. Extremely successfully, too.

.
TBaggins at 2007-11-17 12:07:36 >
# 67 Re: Report: iPhone could make or break Apples bank
No, I don't think that he he really cares. The problem here is that trolling Mac users is so easy and profitable that the only way to change his behavior is convince Mac users to not take the bait so easily.

Precisely!
lfe2211 at 2007-11-17 12:08:38 >
# 68 Re: Report: iPhone could make or break Apples bank
:lol: I'm going to have to rant yet again about shoddy journalism. The Nancy Gohring article quoted by bavlondon2 is one more example. As I read her article, my thoughts were similar to those expressed very well by David Demaree in his article entitled Damned Lies Redux. The title is a reference to the well-known saying which was part of a phrase attributed to Benjamin Disraeli and popularized in the U.S. by Mark Twain: There are three kinds of lies: lies, damned lies, and statistics. The semi-ironic statement refers to the persuasive power of numbers, and succinctly describes how even accurate statistics can be used to bolster inaccurate arguments.

Since Demaree articulates my thoughts so well, I'll just let his words speak for themselves.

http://practicalmadness.com/2007/02/damned_lies_red

Evryones entitled to their own opinion. The article you posted is nothing more than a generic one so stop using such garbage to bolster your own fantasies.

The fact is that the price of the iphone is way too expensive for a phone with such outdated feaures. Ill admit the touch interface is second to none but its not even 3g, the camera doesnt even have a flash or autofocus and the useage time is poor.And an internal battery? What a joke. (I i suppose its not your fault you guys are sow to pick up 3G let alone HSDPA)

I wonder if it will even get through a day. Is this why a standbytime was never announced, only a talk/useage time. Im sure the FCC report will show all but what im pointing out is that whilst its a nice device majority of people wont pay $500 for a phone with a 2 year contract. We dont even have 2 years contracts in the uk lol

And the most high end of all phones are only built to last a year or so. With Apples track record in faulty ipods will the iphone last 2 years?

These things should have been addressed before Apple went ahead with the launch.
bavlondon2 at 2007-11-17 12:09:33 >
# 69 Re: Report: iPhone could make or break Apples bank
No, I don't think that he he really cares. The problem here is that trolling Mac users is so easy and profitable that the only way to change his behavior is convince Mac users to not take the bait so easily.
That's an impossibility. Dvorak's trolling technique (which isn't even brilliant, btw, a nine-year old could do much the same thing) will always work on any platform, product, etc. that has a passionate user base.

For Dvorak's trolling not to work, Mac users would have to not be passionate about Macs. It's the inherent downside of having products that you actually really like and enjoy using.

As lame as Dvorak's doucebag antics are, it'd be infinitely worse if they provoked no response whatsoever. :wow:

.
TBaggins at 2007-11-17 12:10:40 >
# 70 Re: Report: iPhone could make or break Apples bank
We dont even have 2 years contracts in the uk lol
No, what you have is 18 month contracts and much-higher-than-US-prices for minutes. Which is why you Euro folk are so into texting... talking is too expensive over there. ;)

And the most high end of all phones are only built to last a year or so. With Apples track record in faulty ipods will the iphone last 2 years?
Don't see why not. I own 2 iPods, both have lasted quite awhile, including my 1G Mini which I got 3 years ago. But my Nokia 6256i cellphone? Busted, blown-out hinge after only 16 months. :(

Let's just say that when it comes to cellphones, the durability bar is set pretty slow. Apple would have to do very poorly not to meet or beat the standard established by the existing major phone makers.

.
TBaggins at 2007-11-17 12:11:39 >
# 71 Re: Report: iPhone could make or break Apples bank
Good points there. Lets hope for their sake they do. Although does the 2 year contract mean that Apple wont have a sucessor to the iphone for 2 years?

I hope the iphone has other basic feaures found in most phones such as being able to play 3gp/mp4 as well as video recording on the camera. As you lot are lucky to get it first when do you expect to see the full specs for it?

More importantaly when will it be FCC approved?
bavlondon2 at 2007-11-17 12:12:43 >
# 72 Re: Report: iPhone could make or break Apples bank
i don't think they'll wait that long to introduce new features. with efforts like this i believe most of the time goes into getting the first one out and getting your foot in the door. now that they're "established" they'll be able to roll out different models much more easily and faster.
admactanium at 2007-11-17 12:13:36 >
# 73 Re: Report: iPhone could make or break Apples bank
That's an impossibility. Dvorak's trolling technique (which isn't even brilliant, btw, a nine-year old could do much the same thing) will always work on any platform, product, etc. that has a passionate user base.

For Dvorak's trolling not to work, Mac users would have to not be passionate about Macs. It's the inherent downside of having products that you actually really like and enjoy using.

No, that's the downside of being so personally invested in a computer. An insult against the computer is taken as a personal insult. It's stupid to do, regardless of platform. One thing that is not Dvorak's fault is people that don't want to become emotionally or mentally mature enough to know how to avoid being troll-baited like that.

As lame as Dvorak's doucebag antics are, it'd be infinitely worse if they provoked no response whatsoever. :wow:

I disagree, I think the causality is the reverse. If he's ignored, then he will go away or write about something else instead. In contrast, giving him vitriol and multiplying page hits will encourage him to do it again and more often. Dvorak has absolutely no reason to break this loop. He doesn't care what you or I think unless it hits him in the pocket book. I think this adage fits: "Fool me once, shame on you, fool me twice, shame on me...".
JeffDM at 2007-11-17 12:14:42 >
# 74 Re: Report: iPhone could make or break Apples bank
No, that's the downside of being so personally invested in a computer. An insult against the computer is taken as a personal insult. It's stupid to do, regardless of platform. One thing that is not Dvorak's fault is people that don't want to become emotionally or mentally mature enough to know how to avoid being troll-baited like that.
One person's emotional immaturity is another person's enthusiasm or passion. It really depends on how you personally choose to view it. I myself find NASCAR fanatics to be inappropriately into a boring sport, but I'm sure we could come up with many valid perspectives on that contrary to mine.

To me, the ironic thing is, given Apple's past near-death experiences, we probably wouldn't even be having this discussion if not for it's fans' passion (Dvorak would say 'fanaticism'). Apple would've ceased to exist. :(

I disagree, I think the causality is the reverse. If he's ignored, then he will go away or write about something else instead. In contrast, giving him vitriol and multiplying page hits will encourage him to do it again and more often. Dvorak has absolutely no reason to break this loop. He doesn't care what you or I think unless it hits him in the pocket book. I think this adage fits: "Fool me once, shame on you, fool me twice, shame on me...".
Well, that's an idealistic sentiment, and no doubt if all 22 million plus Mac users followed it, Dvorak would be a lonely boy indeed. All I'm saying is that its highly unlikely that anyone will ever get the entire (enthusiastic, passionate) Mac base to not respond. It's a nice 'what if' scenario though.

So, since that probably isn't going to happen, we may as well have some fun with the trollish likes of Dvorak and the other assorted douches of his ilk. The Joy of Tech cartoon was a fun example of that. 8-)

.
TBaggins at 2007-11-17 12:15:44 >
# 75 Re: Report: iPhone could make or break Apples bank
Good points there. Lets hope for their sake they do. Although does the 2 year contract mean that Apple wont have a sucessor to the iphone for 2 years?

I hope the iphone has other basic feaures found in most phones such as being able to play 3gp/mp4 as well as video recording on the camera. As you lot are lucky to get it first when do you expect to see the full specs for it?

More importantaly when will it be FCC approved?
I don't recall reading anything about Apple's contract with ATT that would prevent them from releasing other iPhone models... only that any iPhones made by Apple over the next 2 years will be ATT/Cingular exclusives in the US. If anyone has any info contrary to that, please pipe up.

Far as FCC approval goes, this is a good page to watch for it on. The iPhone is not listed yet, so we're still waiting, apparently:

http://www.phonescoop.com/phones/new.php?m=f

.
TBaggins at 2007-11-17 12:16:42 >
# 76 Re: Report: iPhone could make or break Apples bank
I don't recall reading anything about Apple's contract with ATT that would prevent them from releasing other iPhone models... only that any iPhones made by Apple over the next 2 years will be ATT/Cingular exclusives in the US. If anyone has any info contrary to that, please pipe up.

Far as FCC approval goes, this is a good page to watch for it on. The iPhone is not listed yet, so we're still waiting, apparently:

http://www.phonescoop.com/phones/new.php?m=f

.

The only shame is that whilst the 4gb model will be $400 that will still be 400 for us whoch means we pay more for the technology than you guys will do.

But hopefully our version will be 3G.
bavlondon2 at 2007-11-17 12:17:40 >
# 77 Re: Report: iPhone could make or break Apples bank
I don't recall reading anything about Apple's contract with ATT that would prevent them from releasing other iPhone models... only that any iPhones made by Apple over the next 2 years will be ATT/Cingular exclusives in the US. If anyone has any info contrary to that, please pipe up.

Far as FCC approval goes, this is a good page to watch for it on. The iPhone is not listed yet, so we're still waiting, apparently:

I tend to agree with the Appleinsider link below. The deal is probably a 5 year exclusive deal.
http://www.appleinsider.com/article.php?id=2447 (http://209.85.165.104/search?q=cache:KgBbVhMTNUYJ:www.appleinsider.com/article.php%3Fid%3D2447+cingular+iPhone+5+year+dea l+appleinsider&hl=en&ct=clnk&cd=1&gl=us)

PS: I'm surprised that the FCC approval hasn't gone through yet.
solipsism at 2007-11-17 12:18:47 >
# 78 Re: Report: iPhone could make or break Apples bank
I tend to agree with the Appleinsider link below. The deal is probably a 5 year exclusive deal.
http://www.appleinsider.com/article.php?id=2447 (http://209.85.165.104/search?q=cache:KgBbVhMTNUYJ:www.appleinsider.com/article.php%3Fid%3D2447+cingular+iPhone+5+year+dea l+appleinsider&hl=en&ct=clnk&cd=1&gl=us)

PS: I'm surprised that the FCC approval hasn't gone through yet.

I'm happy I waited to read all the posts before replying.

I also seem to remember the 5 year contract bit.

People are assuming that because ATT is offering a 2 year contract to their customers, Apple must have a 2 year contract with ATT. One thing has nothing to do with the other.

It takes a while for the FCC to finish their approval process (assuming that it DOES get approved, not everything does, first time around).
melgross at 2007-11-17 12:19:42 >
# 79 Re: Report: iPhone could make or break Apples bank
I tend to agree with the Appleinsider link below. The deal is probably a 5 year exclusive deal.
http://www.appleinsider.com/article.php?id=2447 (http://209.85.165.104/search?q=cache:KgBbVhMTNUYJ:www.appleinsider.com/article.php%3Fid%3D2447+cingular+iPhone+5+year+dea l+appleinsider&hl=en&ct=clnk&cd=1&gl=us)

I dunno... some analysts seem to have a different take on it:

Will The iPhone Be Available Through Other Carriers?
Apple and Cingular have inked a multi-year exclusive contract for the iPhone. However, it is unclear whether this deal applies to this iPhone model only or all future models released throughout the duration of the contract. We believe Apple will release new iPhone models quickly (as the company has with the iPod) and these devices will eventually be open to other wireless carriers, possibly even before the Cingular contract expires. With this expansion to other carriers comes expansion of the addressable market beyond Cingular's 58m subscribers. Certainly Apple will use other carriers abroad; the company indicated that it plans to expand iPhone distribution to Europe in the Q4 of FY07 quarter and to Asia in FY08. Apple will need to develop other versions of the iPhone for these markets (CDMA, etc.), which the company will likely also sell to other U.S. wireless carriers just after or even before the exclusive deal with Cingular ends.

http://www.appleinsider.com/article.php?id=2452

There does seem to be some confusion here. My guess? The details of deal have been kept intentionally vague. so that Cingular/ATT can put one spin on it while Apple puts another. Kinda like most political treaties. :lol:

.
TBaggins at 2007-11-17 12:20:52 >
# 80 Re: Report: iPhone could make or break Apples bank
However, it is unclear whether this deal applies to this iPhone model only or all future models released throughout the duration of the contract. We believe Apple will release new iPhone models quickly (as the company has with the iPod) and these devices will eventually be open to other wireless carriers, possibly even before the Cingular contract expires.

I don't buy that logic as it would completely make the exclusive deal with AT&T pointless if Apple could release a nearly identical iPhone with a different model number. I'd bet money that Cingular gets exclusive rights to the US market for a set amount of years regardless of changes made to the iPhone line.
solipsism at 2007-11-17 12:21:48 >
# 81 Re: Report: iPhone could make or break Apples bank
I don't buy that logic as it would completely make the exclusive deal with AT&T pointless if Apple could release a nearly identical iPhone with a different model number. I'd bet money that Cingular gets exclusive rights to the US market for a set amount of years regardless of changes made to the iPhone line.
I'd agree with you, except for the fact that Cingular/ATT has been so very careful to avoid spelling out their agreement with Apple in detail. Seems like if they really did have a five-year lock on all US-released Apple phones, period, no questions asked, they would've announced it by now.

Perhaps at a press conference with a giant banner backdrop that says, "Ha ha Verizon. Neener neener neener." 8-)

Methinks that since that hasn't happened, there's some kind of loophole in there somewhere, or perhaps it's not as long a term as ATT wanted to give the impression of it being. Remember, Stevie has a somewhat notorious history of making agreements his way.

.
TBaggins at 2007-11-17 12:22:45 >
# 82 Re: Report: iPhone could make or break Apples bank
I'd agree with you, except for the fact that Cingular/ATT has been so very careful to avoid spelling out their agreement with Apple in detail. Seems like if they really did have a five-year lock on all US-released Apple phones, period, no questions asked, they would've announced it by now.

Perhaps at a press conference with a giant banner backdrop that says, "Ha ha Verizon. Neener neener neener." 8-)

Methinks that since that hasn't happened, there's some kind of loophole in there somewhere, or perhaps it's not as long a term as ATT wanted to give the impression of it being. Remember, Stevie has a somewhat notorious history of making agreements his way.

.

You do make some valid points.

1) Jobs is a shrewd deal maker and the terms always favor Apple more.
2) If I were CIngular and thought I may lose potential customers if they thought they could wait out the 2 years with there current carrier until the offer the iPhone I may let them know.
solipsism at 2007-11-17 12:23:50 >
# 83 Re: Report: iPhone could make or break Apples bank
You do make some valid points.

1) Jobs is a shrewd deal maker and the terms always favor Apple more.
2) If I were CIngular and thought I may lose potential customers if they thought they could wait out the 2 years with there current carrier until the offer the iPhone I may let them know.
Yeah. Something just smells funny, y'know? ;)

Let's just say I won't be utterly shocked if 2009 rolls around and I can use some form of iPhone on Sprint or Verizon.

.
TBaggins at 2007-11-17 12:24:57 >
# 84 Re: Report: iPhone could make or break Apples bank
Yeah. Something just smells funny, y'know? ;)

Let's just say I won't be utterly shocked if 2009 rolls around and I can use some form of iPhone on Sprint or Verizon.

.

The only problem with that is that Apple would have to commit to produce CDMA versions as well.

CDMA is more power hungery than GSM, even though I;'m on Sprint.

If you go to PhoneScoop, and compare phones that have both versions, you will find that the CDMA versions have less talk and standby battery life. That could be a problem for a phone with both Bluetooth and WiFi.
melgross at 2007-11-17 12:25:49 >
# 85 Re: Report: iPhone could make or break Apples bank
The only problem with that is that Apple would have to commit to produce CDMA versions as well.

CDMA is more power hungery than GSM, even though I;'m on Sprint.

If you go to PhoneScoop, and compare phones that have both versions, you will find that the CDMA versions have less talk and standby battery life. That could be a problem for a phone with both Bluetooth and WiFi.
Apple will eventually have to make a CDMA version in any case... while GSM is much more popular overseas, CDMA is the most popular technology in the US. And Cingular/ATT, big as it is, is only a bit more than 25% of the US wireless market.

Yep, CDMA is more power-hungry than GSM. But it has distinct advantages over GSM as well (soft handoffs, greater tower capacity, a generally greater tolerance for weak signals, and if all else is equal probably a lower likelihood of dropping the call... despite what Cingular says in its ads). Its limitations re: power consumption haven't prevented phonemakers from coming out with CDMA versions of their phones, even power-hungry 3G phones. The RAZR would be a good example.

And, if you think about it, it's probably helpful that we won't see a CDMA version 'til at least 2009. Gives Apple a chance to fine-tune the power management, and potentially use better battery technology as well (Li-polymer, Silver-zinc, Li-sulphur).

Far as PhoneScoop goes, I used to practically live there. Very good site, though if you check out the carrier forums there, have your BS filter on- a LOT of cellphone salesmen and fanbois hang out there, and of course THEIR carrier and/or favorite phone maker can do no wrong. :rolleyes:

I also highly recommend HowardForums, which tends to be slightly more polite. :)

.
TBaggins at 2007-11-17 12:26:55 >
# 86 Re: Report: iPhone could make or break Apples bank
PS- I see that Apple already uses lithium-polymer in its notebooks. Hmm...

.
TBaggins at 2007-11-17 12:28:00 >
# 87 Re: Report: iPhone could make or break Apples bank
Whats wrong with Lithium Polymer? I thought that type battery was good?

Anyway people what do you think the chances are of more "gestures" being available when the phone is released.
bavlondon2 at 2007-11-17 12:28:52 >
# 88 Re: Report: iPhone could make or break Apples bank
Apple will eventually have to make a CDMA version in any case... while GSM is much more popular overseas, CDMA is the most popular technology in the US. And Cingular/ATT, big as it is, is only a bit more than 25% of the US wireless market.

Yep, CDMA is more power-hungry than GSM. But it has distinct advantages over GSM as well (soft handoffs, greater tower capacity, a generally greater tolerance for weak signals, and if all else is equal probably a lower likelihood of dropping the call... despite what Cingular says in its ads). Its limitations re: power consumption haven't prevented phonemakers from coming out with CDMA versions of their phones, even power-hungry 3G phones. The RAZR would be a good example.

And, if you think about it, it's probably helpful that we won't see a CDMA version 'til at least 2009. Gives Apple a chance to fine-tune the power management, and potentially use better battery technology as well (Li-polymer, Silver-zinc, Li-sulphur).

Far as PhoneScoop goes, I used to practically live there. Very good site, though if you check out the carrier forums there, have your BS filter on- a LOT of cellphone salesmen and fanbois hang out there, and of course THEIR carrier and/or favorite phone maker can do no wrong. :rolleyes:

I also highly recommend HowardForums, which tends to be slightly more polite. :)

.

I prefer CDMA to GSM. I'm just trying to find a reason why Apple may not choose to come out with one. The reason is that there has already been criticism of the stated talk time, and the fact that a standby time hasn't even been given. The fact that both would be even shorter with CDMA could be a stumbling block. Otherwise, I think CDMA is superior to GSM in most every way. The other issues are less tangible to most folks though. Dropped calls are more likely to be blamed on the carrier than on the method of transmission.

I don't really hang out at the forums. But the site itself is almost a requirement if you need phone info. I like the fact that they link to the FCC's test reports. I'm hoping that we will see on for the iPhone once the testing is complete.
melgross at 2007-11-17 12:29:52 >
# 89 Re: Report: iPhone could make or break Apples bank
I prefer CDMA to GSM. I'm just trying to find a reason why Apple may not choose to come out with one. The reason is that there has already been criticism of the stated talk time, and the fact that a standby time hasn't even been given. The fact that both would be even shorter with CDMA could be a stumbling block. Otherwise, I think CDMA is superior to GSM in most every way. The other issues are less tangible to most folks though. Dropped calls are more likely to be blamed on the carrier than on the method of transmission.

How much of the battery's life is due to the phone radio, as in, how much would it really change?

Standby time is not really a problem for my CDMA phone, I never turn it off, it never dies and I only charge it once a week. The phone's battery is also three years old, but for some reason, the effective talk time is reduced a lot, but the standby time hasn't changed much.
JeffDM at 2007-11-17 12:30:57 >
# 90 Re: Report: iPhone could make or break Apples bank
How much of the battery's life is due to the phone radio, as in, how much would it really change?

Standby time is not really a problem for my CDMA phone, I never turn it off, it never dies and I only charge it once a week. The phone's battery is also three years old, but for some reason, the effective talk time is reduced a lot, but the standby time hasn't changed much.

Go to Phonescoop and check out the phones that have both models you will see the difference. The site allows you to pick models and make direct comparisons, so it's easy.

The problem is that we are not talking about basic phones here. PDA phones already make heavier demands on the battery than do regular phones. Add the wireless extras, and battery life sucks. I use my Treo for many things, and so I plug it into the charger every night. My old color Palm IIIC could easily go for a week without charging, but not any of my PDA phone versions.
melgross at 2007-11-17 12:31:58 >
# 91 Re: Report: iPhone could make or break Apples bank
How much of the battery's life is due to the phone radio, as in, how much would it really change?

Standby time is not really a problem for my CDMA phone, I never turn it off, it never dies and I only charge it once a week. The phone's battery is also three years old, but for some reason, the effective talk time is reduced a lot, but the standby time hasn't changed much.

You only charge it once a week? May i ask what phone you use?
bavlondon2 at 2007-11-17 12:33:03 >
# 92 Re: Report: iPhone could make or break Apples bank
You only charge it once a week? May i ask what phone you use?

Sanyo SCP 4900.
JeffDM at 2007-11-17 12:33:56 >
# 93 Re: Report: iPhone could make or break Apples bank
Whats wrong with Lithium Polymer? I thought that type battery was good?

Anyway people what do you think the chances are of more "gestures" being available when the phone is released.

I too am under the mpression that Li-Poly is better than Li-Ion. I've read that it has about 10-12% longer output for the same size battery and it can be formed into more irregular shapes so the battery can be designed around the phone instead of the other way around.

Some info on this wold be great.
solipsism at 2007-11-17 12:35:02 >
# 94 Re: Report: iPhone could make or break Apples bank
I too am under the mpression that Li-Poly is better than Li-Ion. I've read that it has about 10-12% longer output for the same size battery and it can be formed into more irregular shapes so the battery can be designed around the phone instead of the other way around.

Some info on this wold be great.

I remember differently, that Lithium Polymer is more flexible with respect to shape, but doesn't store as much charge per weight. I don't remember the relative weight differences though, maybe LiPoly is allows a smaller but heavier battery for the unit charge.
JeffDM at 2007-11-17 12:36:02 >
# 95 Re: Report: iPhone could make or break Apples bank
In all seriousness does it really matter. You know what he iphone looks like so whats the point in duscussing the possible shape of the phone in respect to the battery. Li Po is better than Li ion in terns of usage. All major companies use Li Po these days in all their new products. I think all Nokia n ranges do as do SE's.

Although what concerns me is that no standby time was ever given for the iphone only a talk(usage) time. This either means its very poor or Apple are trying to make it better.
bavlondon2 at 2007-11-17 12:37:02 >
# 96 Re: Report: iPhone could make or break Apples bank
Another tie-up dares to challenge (http://ymusicblog.com/blog/2007/04/09/wifi-enabled-sandisk-sansa-connect-features-yahoo-music-unlimited-launchcast-messenger-and-flickr/) AAPL... Yahoo (http://music.yahoo.com/ymu/?tab=togo&partner=) and Sandisk (http://www.sandisk.com/Products/Catalog(1249)-SanDisk_Sansa_Connect_MP3_Player.aspx).

Hope that helps my YHOO stock. :smokey:
SpamSandwich at 2007-11-17 12:38:06 >
# 97 Re: Report: iPhone could make or break Apples bank
I prefer CDMA to GSM. I'm just trying to find a reason why Apple may not choose to come out with one. The reason is that there has already been criticism of the stated talk time, and the fact that a standby time hasn't even been given. The fact that both would be even shorter with CDMA could be a stumbling block.
You may be overthinking it, Mel. :\

Remember, Cingular/ATT wasn't the first carrier Apple offered the iPhone to... Verizon was. Which would've necessitated a CDMA iPhone. I don't think Apple would've entered into serious negotiations with Verizon unless they could deliver a CDMA iPhone that would be well-received by the market, and part of that includes having acceptable talk and standby times (even on the GSM iPhone, talk time was mentioned during the Stevenote).

In fact, the above makes me wonder... were the very first iPhone prototypes actually CDMA then? They would've had to show Verizon something, I think. Hmm... :err:

.
TBaggins at 2007-11-17 12:39:08 >
# 98 Re: Report: iPhone could make or break Apples bank
You may be overthinking it, Mel. :\

Remember, Cingular/ATT wasn't the first carrier Apple offered the iPhone to... Verizon was. Which would've necessitated a CDMA iPhone. I don't think Apple would've entered into serious negotiations with Verizon unless they could deliver a CDMA iPhone that would be well-received by the market, and part of that includes having acceptable talk and standby times (even on the GSM iPhone, talk time was mentioned during the Stevenote).

In fact, the above makes me wonder... were the very first iPhone prototypes actually CDMA then? They would've had to show Verizon something, I think. Hmm... :err:

I wonder if Apple actually seriously considered a CDMA phone. Even if Apple chose CDMA in the US, they would have to chose GSM outside North America.
Wanting to only get in bed with AT&T means that they can work with only one company and only one phone build in the US. Less time and money spent working out the logistics of the creating new interoperability between hardware and network services.
if I were in Jobs position I'd start negotiations will all the major competitors of the company I really wanted to pair with in order to strengthen my bargaining position.
Verizon's remarks about the iPhone had a bit of a "sour grapes" rings to me.
solipsism at 2007-11-17 12:40:02 >
# 99 Re: Report: iPhone could make or break Apples bank
Even if Apple chose CDMA in the US, they would have to chose GSM outside North America.
Which really isn't a big deal. CDMA technology is mature, inexpensive, and well understood. It's not difficult at all to make a phone in both CDMA and GSM 'flavors'... the RAZR is, for example.

1. Wanting to only get in bed with AT&T means that they can work with only one company and only one phone build in the US. Less time and money spent working out the logistics of the creating new interoperability between hardware and network services.
Again, it's not really a large hurdle. Motorola doesn't seem to have any problem cranking out both GSM and CDMA RAZRs for the US market, in fact, they're happy to, since the US market is split almost 50-50 between CDMA and GSM (with CDMA being a bit ahead) and doing so effectively doubles their revenues here.

At some point, Apple will have to make a CDMA iPhone if they really truly want to cash in on the US market. Cingular/ATT is only a little more than 25% of the US market... would not Apple want to eventually sell to the entire market? This is one of the things that makes me think that the exclusivity clause of the Apple-ATT contract either has loopholes for new models or is of a shorter duration than ATT is giving the impression of it being.

2. If I were in Jobs position I'd start negotiations will all the major competitors of the company I really wanted to pair with in order to strengthen my bargaining position.
Perhaps, but here's the thing... what if Verizon had said "Yes."? What does Steve say then? "Um... err... just kidding. Heh." :rolleyes:

I think it's more realistic to believe that Jobs had a Plan A (Verizon, whom he approached first) and a Plan B (ATT/Cingular), and he was only too happy to play them off against one another in order to secure better terms for Apple. But he was likely prepared to go with either. If you think about it, these two carriers were the only realistic partners for Apple in the US market, what with the only other potentials being T-Mobile (too small) and Sprint-Nextel (going through merger hell, generally underperforming, and in the midst of a not-fun major technology migration from iDEN to CDMA for its Nextel customers).

Basically, Jobs shopped the iPhone to 'everyone who made sense' in the US. Since the technological hurdles of making both a CDMA and a GSM version aren't high, it's logical to assume that he was willing to go with whomever came closer to meeting his terms, i.e. whomever needed the iPhone more. That was ATT.

3. Verizon's remarks about the iPhone had a bit of a "sour grapes" rings to me.
Of course. Jobs gave them a shot at it, but on terms that Verizon wasn't willing to agree to, and now its in the hands of Verizon's #1 competitor, who's going to club them over the head with it mercilessly until and unless Verizon gets their own version, which even in a best case scenario won't be for awhile.

They're also pissed because they're used to a world in which the carriers have always told the phonemakers what they want and the phonemakers then jump to it (even majors like Nokia and Motorola). The carriers had the power, the control. Apple went directly in the face of that, and Verizon was just not used to it. I can only imagine what the negotiations must've been like: :lol:

http://home.xnet.com/~cmaddox/you_want_it_when.jpg
You want WHAT again, Steve?

They probably ain't laughing now. 8-)

.
TBaggins at 2007-11-17 12:41:08 >
# 100 Re: Report: iPhone could make or break Apples bank
Has anyone seen this? 40 mins battery life, what a rubbish phone this will turn out to be if thats true.

http://theappleblog.com/2007/04/04/dvorak-iphone-battery-dead-after-40-minutes/

First mistake was indeed having a fixed battery.
bavlondon2 at 2007-11-17 12:42:04 >
# 101 Re: Report: iPhone could make or break Apples bank
That's Nancy Fohring's opinion. Nothing more. And you were comletely flippant in your original position as well. So there's plenty of 'tude to go around. Early adopters a "whack"?

I've been around here a helluva lot longer than you have. You better grow a thicker skin if you want to last.

Noob. Typical American trying to talk technology. No wonder you lot get crap majority of the time when it comes to phones lol.

Is there even HSDPA yet in the states? lol
bavlondon2 at 2007-11-17 12:43:07 >
# 102 Re: Report: iPhone could make or break Apples bank
Has anyone seen this? 40 mins battery life, what a rubbish phone this will turn out to be if thats true.

(link removed)

First mistake was indeed having a fixed battery.

First, please don't link to information where Dvorak was clearly in the "supply chain" of information.

Second, I agree, a fixed battery goes against a decade or so of tradition with little justification.
JeffDM at 2007-11-17 12:44:13 >
# 103 Re: Report: iPhone could make or break Apples bank
Of course, everyone remembers that Apple has a lot of cash in the bank. They just might start to buy up wireless in the same way that Deutsche Telecom (T-Mobile) did in the US and keep all the profits at Apple. It could happen... slowly I turn...
SpamSandwich at 2007-11-17 12:45:14 >
# 104 Re: Report: iPhone could make or break Apples bank
You may be overthinking it, Mel. :\

Gee, when haven't I been accused of that?:lol:

Actually, I did know about that. And it's very strange, wouldn't you say? But there could be more to the story than the one we've heard from Verison.

Remember, Cingular/ATT wasn't the first carrier Apple offered the iPhone to... Verizon was. Which would've necessitated a CDMA iPhone. I don't think Apple would've entered into serious negotiations with Verizon unless they could deliver a CDMA iPhone that would be well-received by the market, and part of that includes having acceptable talk and standby times (even on the GSM iPhone, talk time was mentioned during the Stevenote).

In fact, the above makes me wonder... were the very first iPhone prototypes actually CDMA then? They would've had to show Verizon something, I think. Hmm... :err:

.
melgross at 2007-11-17 12:46:10 >
# 105 Re: Report: iPhone could make or break Apples bank
[QUOTE=solipsism;1067085]
Even if Apple chose CDMA in the US, they would have to chose GSM outside North America.[/ quote]
Which really isn't a big deal. CDMA technology is mature, inexpensive, and well understood. It's not difficult at all to make a phone in both CDMA and GSM 'flavors'... the RAZR is, for example.

Again, it's not really a large hurdle. Motorola doesn't seem to have any problem cranking out both GSM and CDMA RAZRs for the US market, in fact, they're happy to, since the US market is split almost 50-50 between CDMA and GSM (with CDMA being a bit ahead) and doing so effectively doubles their revenues here.

At some point, Apple will have to make a CDMA iPhone if they really truly want to cash in on the US market. Cingular/ATT is only a little more than 25% of the US market... would not Apple want to eventually sell to the entire market? This is one of the things that makes me think that the exclusivity clause of the Apple-ATT contract either has loopholes for new models or is of a shorter duration than ATT is giving the impression of it being.

Perhaps, but here's the thing... what if Verizon had said "Yes."? What does Steve say then? "Um... err... just kidding. Heh." :rolleyes:

I think it's more realistic to believe that Jobs had a Plan A (Verizon, whom he approached first) and a Plan B (ATT/Cingular), and he was only too happy to play them off against one another in order to secure better terms for Apple. But he was likely prepared to go with either. If you think about it, these two carriers were the only realistic partners for Apple in the US market, what with the only other potentials being T-Mobile (too small) and Sprint-Nextel (going through merger hell, generally underperforming, and in the midst of a not-fun major technology migration from iDEN to CDMA for its Nextel customers).

Basically, Jobs shopped the iPhone to 'everyone who made sense' in the US. Since the technological hurdles of making both a CDMA and a GSM version aren't high, it's logical to assume that he was willing to go with whomever came closer to meeting his terms, i.e. whomever needed the iPhone more. That was ATT.

Of course. Jobs gave them a shot at it, but on terms that Verizon wasn't willing to agree to, and now its in the hands of Verizon's #1 competitor, who's going to club them over the head with it mercilessly until and unless Verizon gets their own version, which even in a best case scenario won't be for awhile.

They're also pissed because they're used to a world in which the carriers have always told the phonemakers what they want and the phonemakers then jump to it (even majors like Nokia and Motorola). The carriers had the power, the control. Apple went directly in the face of that, and Verizon was just not used to it. I can only imagine what the negotiations must've been like. :lol:

http://images.google.com/imgres?imgurl=http://www.xnet.com/you_want_it_when.jpg&imgrefurl=http://www.xnet.com/~cmaddox&h=156&w=313&sz=23&hl=en&start=17&um=1&tbnid=bHd4BH_aY90LdM:&tbnh=58&tbnw=117&prev=/images%3Fq%3D%2522you%2Bwant%2Bit%2Bwhen%2522%26sv num%3D10%26um%3D1%26hl%3Den%26safe%3Doff%26client% 3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DN
You want WANT again, Steve?

They probably ain't laughing now. 8-)

.

Of course, it could just of easily been the other way around. Cingular/ATT could have been plan "A", and Verison been plan "B".

If Cingular didn't play ball, they could have gone with Verison, but as Cingular did, they didn't have to.

It's also possible that once Cingular said yes, and with the required exclusivity given, they then COULDN'T have gone to Verison as well. It could be that Apple simply stopped serious negotiations, and Verison broke it off.

I've seen this tactic in business before. You don't always want to be seen as the one breaking off negotiations. This way you can always go back later and say; "We wanted to play ball, but you guys weren't interested.".
melgross at 2007-11-17 12:47:09 >
# 106 Re: Report: iPhone could make or break Apples bank
First, please don't link to information where Dvorak was clearly in the "supply chain" of information.

Second, I agree, a fixed battery goes against a decade or so of tradition with little justification.

Why do people hate this Dvorak so much? Is it becasue hes posting negative comments about the iphone?

What if they turn out to be true?>
bavlondon2 at 2007-11-17 12:48:17 >
# 107 Re: Report: iPhone could make or break Apples bank
Has anyone seen this? 40 mins battery life, what a rubbish phone this will turn out to be if thats true.

http://theappleblog.com/2007/04/04/dvorak-iphone-battery-dead-after-40-minutes/

First mistake was indeed having a fixed battery.

I also don't feel compoftable with the source. I find it hard to believe that at this stage of manufacture that this could occur.

When we design a product, we know pretty much what the power consumption each of the components requires. We can fairly easily calculate the total power consumption of the device, with a certain percentage of error. That error could be 25%, even possibly, a bit more. If so, we go back and check to see that everything meets spec. If there is a design problem causing it, we can fix that.

But if this were true, then it would mean that the spec is off by 400%, an impossible number.

The only way that could happen is if the batteries themselves had some problem with self discharge, or a major problem existed in the design, which just doesn't seem to be possible now.
melgross at 2007-11-17 12:49:12 >
# 108 Re: Report: iPhone could make or break Apples bank
Why do people hate this Dvorak so much? Is it becasue hes posting negative comments about the iphone?

What if they turn out to be true?>

Dvorak used to be a Mac user, and wrote for the Mac press. When he went to Windows, he became very nasty, baiting Mac users, as he himself admitted, so that his columns would get hits, and therefore look to be more popular than they are.

It's difficult to take something seriously that he says, when he says it without attribution, as he often, as he himself admits, makes things up.
melgross at 2007-11-17 12:50:12 >
# 109 Re: Report: iPhone could make or break Apples bank
As previously reported on this thread, right from his own own mouth, Dvorak speaks out on YouTube

http://www.youtube.com/watch?v=gOHzHVF-4Mg
lfe2211 at 2007-11-17 12:51:16 >
# 110 Re: Report: iPhone could make or break Apples bank
Dvorak used to be a Mac user, and wrote for the Mac press. When he went to Windows, he became very nasty, baiting Mac users, as he himself admitted, so that his columns would get hits, and therefore look to be more popular than they are.

It's difficult to take something seriously that he says, when he says it without attribution, as he often, as he himself admits, makes things up.

So you think the comments regarding the iphones battery is completley untrue? For all prospective iphone owners im sure we all hope so.

Then again do you not all find it strange that no standby time was anounced. Just a usage time.

If all companies done that the figures would be misleading. For example the N95 has a talktime of 6 hours yet only a standby time of 220 hours which is poor considering how powerful it is.

With a screen of the iphones size and running os x i wouldnt rule out a stand by time of less than 200 hours which is quite frankly embarrasing. Its using a li ion battery so its not going to be great with a screen that size. My prediction for standby - 175 hours.

Apples standby times for ipods are always way of the mark which is even more worrying.
bavlondon2 at 2007-11-17 12:52:23 >
# 111 Re: Report: iPhone could make or break Apples bank
So you think the comments regarding the iphones battery is completley untrue? For all prospective iphone owners im sure we all hope so.