“As more cell phone makers launch handsets that also play music, Apple Computer looks poised to defend its turf by going on the offensive with an iPod music player capable of making phone calls,” Patrick Seitz reports for Investor’s Business Daily.
“Until Apple Chief Executive Steve Jobs unveils one on stage at a press event or tech conference — possibly Jan. 9 at Macworld in San Francisco — the iPhone will remain speculation,” Seitz reports.
“‘It makes sense for Apple to come out with an iPhone,’ said Kevin Burden, an analyst with telecom research firm Telephia. ‘With mobile phones becoming pretty good media players themselves, they’re already starting to cannibalize the MP3 player market a little bit, and it’s only going to accelerate,'” Seitz reports.
“If Apple can get even 1% or 2% of the estimated 1 billion cell phones that are sold next year it would be a huge positive, said Richard Stice, an analyst with Standard & Poor’s,” Seitz reports. “A true blockbuster could do far better. Motorola in July said it had sold 50 million of its ultra-sleek Razr handsets. Other analysts said an iPhone business is nothing to cheer about. ‘The economics of something like that aren’t that compelling,’ said Morningstar analyst Rod Bare.”
“Just look at Walt Disney’s failed ESPN Mobile venture, Bare said. Like Apple, the sports network has a strong brand and fanatical audience. But ESPN couldn’t make its mobile phone and service a success. Critics said ESPN’s service was overpriced and the one phone it offered wasn’t very appealing,” Seitz reports. “Don’t expect Apple to make the same mistakes.”
“‘Every time they come out with something, it’s eye-opening and it tends to send the market in a slightly different direction — which is to follow,’ Telephia’s Burden said,” Seitz reports.
Full article here.
MacDailyNews Take: If and when Apple releases the product and reveals sales figures, we will certainly revisit Rod Bare’s ‘iPhone’ comment: “The economics of something like that aren’t that compelling.”
Related articles:
BusinessWeek: Wish List for Apple ‘iPhone’ – December 08, 2006
Apple ‘iPhone’ could cause Nokia, Palm, Motorola, and RIM to really start to sweat – December 07, 2006
Apple shares fall as CIBC sees ‘iPhone’ release delayed – December 07, 2006
Analyst expects 16GB flash-based Apple iPod video player, 4-8GB flash-based ‘iPhone’ models – December 07, 2006
CNET editor Kanellos: ‘Apple iPhone will largely fail’ – December 07, 2006
Prudential: Apple ‘iPhone’ to sport iPod click wheel; video iPod by Q2 – December 06, 2006
RUMOR: Apple’s smart phone project to feature ‘extensive integration with Mac OS X’ – December 05, 2006
Apple begins ‘iPhone’ production – December 05, 2006
Apple needs to think different about data security for ‘iPhone’ – December 05, 2006
Kevin Rose: Dual-battery Apple ‘iPhone’ coming in January; $249 for 4GB, $449 for 8GB – December 03, 2006
But this won’t stop Mr. Jobs from unloading more junk on the environment and mac idiots from buying it.
Joke’s on you
I don’t know anything about ESPN mobile but just the sound of it isn’t enticing. What do ESPN and phones have in common? You can sign up people for a service to get sports updates but u don’t need an entire phone and carrier to do that. Can do that with every carrier and phone thru text messeges.
….I just drank the Kool-Aid. I feel fine!! Where’s my iPhone?
Nokia, Motorola et al: all waiting to hear which direction their product is going to take in the future.
Hilarious.
The mighty U.S.S. Apple strikes the reef of communications complacency. So what? More time for Apple to improve OS X, work on the next Office-killer, develop the next generation of iPods, prepare iTV, expand iTunes, etc, etc, etc.
I don’t give a flying f**k about the music, just give me an easy-to-use-cellphone. End of discussion.
I want one that’s coin operated. Then, I’ll make a fortune hanging out on busy street corners. Plan the work. Work the plan.
Yes, the economics will be poor for Apple, which is why Nokia, Motorola and all the carriers just can’t wait to get out of the cellular business and go into more lucrative areas such as the US steel industry…
What a numb-brained comment. Yes, he is right, Apple should just sell MP3 players and stay away from other markets and die on a vine.
Sounds like this is an analyst who own lots of cellular companies stocks, and not enough AAPL, and is in denial that Apple is going to do some major damage in this industry, turning the typical model upside down.
All analysts that says stuff like this do is ruining their credibility (some still have a bit), and making themselves look really dumb.
But I suppose if they are getting paid by certain entities to say such things, their house on the coast they can afford makes it worth it…
My best friend said the same thing when the first iPod came out “it won’t sell, there are other better products out there blah blah blah”
all I know is that I’m saving my $$ for an iPhone so that I can get rid of my Treo Brick
Comparing this to ESPN is way off. Seriously how many people are so obsessed wth sports they will pay for that???
How many have internet access on their phone?
who uses it?
The music is where it’s at, if my phone can have some songs on it like a shuffle, and allow me to swap out songs, excellent.
This will be something. If not that big in America then Europe and Japan.
MDN: Hilarious rejoinder.
The pattern of pathetic prognostication by pundits has gotten to the point we can all predict the inevitable reversals.
Apple must be loving that.
That’s why this “journalist” is writing for food, not making decision as a CEO in a high tech company!
What’s not compelling are analyst Rod Bare’s opinions.
I think that American consumers are chomping at the bit for a cell phone that doesn’t suck. I know I am.
Morningstar analyst Rod Bare? Does that sound like a porn name, or what?
“Sonny, it’s cold outside. Don’t go outside with your Rod Bare or you’ll freeze it off!”
Morningstar analyst Rod Bare? Does that sound like a porn name, or what?
“Sonny, it’s cold outside. Don’t go outside with your Rod Bare or you’ll freeze it off!”
Ampar! Is that you?
Don’t Pass The KoolAid
With a post like that gotta wonder if you are on the GreenSleaze payroll
what will happen to APPL stock if they don’t introduce an apple phone at Macworld?
ESPN was not making cellphones. That would make as much sense as Microsoft making MP3 play…err.
Don’t pass the koolaid, daddy drinks because you whine.
ANALYSTS, are not that compelling.
The ESPN phone was all about subscribing to exclusive ESPN material and having it delivered to your mobile phone, not about the overall phone experience or even making calls. If the rumors are true, Apple’s iPhone will basically be an iPod strapped to a very cool phone, with easy to use features, a (finally!) good UI, and great connectivity to OS X’s address book, iCal, etc.
If Apple moves into making a smart phone, then it will almost assuredly be the most easy to use smart phone on the market, as well as an iPod and some other cool features.
Uncle Steve’s not about to release an iPhone if it doesn’t do something revolutionary. Plus, Apple is looking to make money off of the hardware, not just as a service provider.
who is going to win once the NEW game begins ?
Rebel Mac article
In case you’re new to The Game</i>, here’s how it works:
1. Analyst realizing he didn’t recommend a stock to his clients that is poised to go through the roof, quickly tries to deflate the stock. To do this effectively, he not only trashes the stock but gets some of his equally inept buds to do the same. Result: Sheep sell and the “shorts” make a quick buck.
2. Once the stock drops say 4% ~ 6%, the same analyst “discovers” new compelling reasons why in fact the stock is great <b>buy and raises the target 10% ~ 20% above last trade. His clients now buy low and immediately sees a gain as the sheep now buy in mass. Programmed institutional trades help here.
3. Having successfully dumped and pumped, the analyst can goes back to his three our cocktail lunches.
Rod Bare is actually a hit man for Nokia.
Anita D. Cox Bare, his ex-wife, blew the whistle on him.
He used to have his hands in junk bonds for Siemens until that went south.
Macmania
You said dumped, pumped, analyst and cocktail all in one sentence.
We don’t need that kind of sexual inyourendho here.
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“Don’t pass the koolaid, daddy drinks because you whine.”
Two letters for you: AA
Jimbo– I always thought your name sounded like a porn star; good call though!
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Seriously, how can Bare compare the ESPN phone with an Apple product. First of all, APPLE IS A ELECTRONICS HARDWARE AND SOFTWARE COMPANY THAT HAS A PROVEN TRACK RECORD OF DESIGNING AND MANUFACTURING POPULAR CONSUMER ELECTRONIC DEVICES. ESPN is a SPORTS NETWORK. Gee, do think Apple might have just a little bit more to bring to the table, Rod???
Rod… you’re a dick.
Daddy drinks because you spell.
Oh, and one more thing….
if you don’t beleive me,
Google Rod Bare’s Junk-Bonds for Siemens and liquidates assets…
I’m going to!
I do hope Apple makes a cell phone. The cell phone industry needs a player like Apple. Current cell phones are NOT easy to use, they are ugly and poorly designed. I hate my cell phone, it has so many badly designed “features”. I don’t need to look for a better one, because that phone doesn’t exist.
I hope apple deletes some of the stupider “features” on its phone if it building one.
Of course Apple cannot fix some of the other cell phone nightmares like bad connections, dropped calls etc.
Will entering that business be good for Apple, I can’t tell weither it would be good for them.
Um…apple is successful in the mp3 player market because they look at the big picture and deliver great products that consumers like. I think the espn venture failed because they probably made a sub-standard “solution”. they mucked up the hardware, or the software, or both. i have a feeling apple will come to market with a phone if it is a good product from the consumers perspective. it will have to be attractive in a number of different ways.
Dont drink the koolaid:
look troll, you bought a computer to type your blather so dont highbrow us. i recycle and i dont litter. i also dont buy peecees that will be obsolete in six months. i believe you get what you pay for and the return on investment is usually better in the long run for all parties involved. if you want to all-of-a-sudden turn amish on us then be my guest. tard.
Apple is successful in the computer market, the mp3 player market, the retail store market, and the ‘je ne sais quoi’ market. No reason Apple can’t be successful in the cellular phone market. A well-designed, intuitively operated, computer-happy cell phone definitely has a market. I’m happy with my SonyEricsson Z520, mostly because it syncs and plays well with my computer, but I know it could be improved, and I know I’d be happy to pay for something improved- not just something with more bells and whistles. The whole idea of ‘improved’ is what Apple gets, and precious few others do.
When things seem impossible to people or when they cannot do it they start to convince you that you cannot do it either.
I think they should wait and see what Apple comes up with and learn how it is done.
funny how they smack talk a product not even released yet
Oh yeah? Well it’ll still make the Kessel Run in 6.8 parsec’s, and that’s compelling enough for you…old man.
haha the ESPN network didn’t even include football coverage, which would be the only compelling reason.
it certainly did not have a custom designed handset rumored to be pretty damn sexy
Apple is now getting FUD from the Phone manufacturing Industry?
WOW, I heard rumors that the iPhone was so wicked cool, Jobs was just salivating to release it….now I don’t think it’s such a rumor.
Is that like analysts predicting that the economics of the iPod was not that compelling? You know that Apple will enter this market with a “twist.” It will offer something that (once release) will be obvious, but no one has implemented yet (something “compelling” that customers will want). With Apple, you can’t extrapolate results based on what everyone else is doing because the only certainty is that Apple WILL NOT do want everyone else is doing.
botox:
That’s why this “journalist” is writing for food, not making decision as a CEO in a high tech company!
Good one!
I want a Home Depot phone!! NO!, I want a Kohl’s phone! What, ESPN phone Shit!! Enough said.
“We don’t need that kind of sexual inyourendho here.”
What kind do we need?
I’m here all week.
“…Other analysts said…”
This guy must be affiliated with Faux “news” InfoTainment (TM).
“…Some folks say….”.
I want a Campbell’s Chunky Soup phone.
TowerTone,
Funny shit, man!
You too, Donovan. And, don’t worry about the phone – mom’s coming with one.
So… I’m looking forward to an Apple cellphone. I think the phones on the market now are not ideal in interface and design. I think apple could blow the doors off the market.
BUT, its going to be curious what feature apple leaves off. A lot of apple’s innovations was openly shunning commonly accepted “manditory” technologies… floppy and scsi on the imac. The ipod resisted fm tuners and voice recorders… and for a long time games, address book, calendar, color and video. Heck, the nano even disregarded the screen, which was pretty surprising.
so, the apple iphone will be great, but its going to require a hard swallow on whatever they decide is not mandatory. In retrospect it will be revolutionary, but what does job dislike? Address books? (would seem to be from the address book in osx). calendar? text messaging? will the phone only work on some proprietary service only available in houston and la?
Dunno. if its unlocked and lets me use it overseas, i’ll buy it regardless the cost. That fact alone mirrored by a few more like me would guarantee a success.
“….I just drank the Kool-Aid. I feel fine!! Where’s my iPhone?”
Relax, hipster, we’ll tell you when it’s ready.