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11 Comments
Apple: Unlocking iPhone Profits
When you count the growing middle class and rich Chinese it would seem that their consumer PC market may match America's soon. Certainly, in the major cities Apple's stores will find Mac customers. The potential of an internet tablet could be huge in addition to the iPhone.
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The number of useable software programs will explode by Christmas creating more good word of mouth. Apple will be developing microprocessors for hand held functions for their devices with the engineers of the recent acquisition. Their many patents portend an integrated view of the technological future for personal use where only they can provide the integrated solution.
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Today's market is quite risky; but the market may turn before people are feeling secure again. Monetary policy usually takes almost a year to effect the economy. Yet, the lenders will likely be effected sooner as the government throws cheap money at them. Apple is likely to continue to make new product news this year with the SDK producing a flood of software come summer and fall. The current $120 floor may well break; but come fall things could turn around. Apple's school sales and product introductions for Christmas as well as quarter announcements should propel the stock. Plus, you have the "new" U.S. President effect to stimulate the market.
Long term, the iPhone will become the largest product segment for Apple with the iPod Touch family increasing the iPod segment. Corporate penetration, starting with the phone, will grow as their programmers find out how productive they can be with X Code and Cocoa. The demo programs were produced in 2 weeks with just one or two software engineers who had not used Cocoa before then. Jobs wanted to show them how much easier it is with Apple's tools. Their excitement showed it worked.
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