Not sitting around doing nothing: ‘iPhone’ could add billions to Apple’s revenue

“Apple Computer Inc., known for its secrecy about new products, has given the strongest signal yet it’s working on an iPod phone that analysts said could be released early next year,” Bloomberg News reports.

“‘The biggest part of (Wednesday’s) call was the iPhone,’ said Piper Jaffray Co. analyst Gene Munster, based in Minneapolis. ‘It was the closest we could get to the announcement of a new product from Apple.’ An iPod phone may be released in the first half of 2007, Munster said. Merrill Lynch & Co. analyst Richard Farmer pegged the release in the first quarter,” Bloomberg News reports.

“‘The company is investing heavily in iPod and iTunes engineering and is very enthusiastic about its products in the pipeline,” Oppenheimer said. The mobile-phone market may approach 1 billion units in 2008, Merrill’s Farmer said. Every 1 percent share of the market Apple captures could add as much as $3 billion to the company’s sales, Farmer told clients in a note Thursday after raising his rating on Apple shares to ‘buy.’ That’s based on a device that will sell for about $300, the New York-based analyst said,” Bloomberg News reports.

Full article here.

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Apple CFO on iPhone: ‘we’re not sitting around doing nothing’ – July 20, 2006
Merrill Lynch ups Apple rating to ‘buy’; UBS raises Apple target to $80 – July 20, 2006
Apple Q3 2006 Conference Call notes – July 19, 2006
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Patent application shows iPod capable of live wireless video conferencing – June 13, 2006
Bear Stearns comments on Apple: ‘true’ video iPod, iPhone, multiple OS plans – May 17, 2006
Apple patent application filed for wireless iPod+iTunes distribution – May 04, 2006
Report: Apple Computer may soon launch its own music ‘iPhone’ – March 31, 2006
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  1. While a nice ipod and phone would be nice, I don’t even think I’d buy it for the mp3 part of it. I just want a nicely designed phone that works nicely with Mac OS X. Even the “nice” phones that we have now feel junky.

  2. Yeah, I’m less interested in the music part of the phone and more interested in the portential quality and functionality of the device. But alas, I’m a Verizon customer so I guess I can pretty much kiss anything like an iPhone goodbye before it even gets here. Verizon, the biggest cellular provider in the country, and the absolute slowest to provide any new cellular-based technologies to its customers.

    And living in rural America, it just so happens that the only viable cellular provider I have acces to is – Tah Dah, Verizon.

    Oh well.

  3. With such a huge market potential, this goes against the nay-sayers that do not envision Apple releasing their own phone. Apple, with their design vision, will not just slap phone functionality on the architecture of any existing iPod. They would obviously know that consumers expect a phone with long battery life and would tackle this issue.

    What would be interesting is to see their vision of a great consumer phone with built in Bluetooth (and perhaps a BT headset that could be stored within the phone), easy sync to an address book/calendar (even w/Outlook support), email/txt msging., camera and at least 1000 songs to tote around in your pocket.

    I would think Apple will only add the iPhone as an extension to the iPod, not a wholesale replacement of any current model. There are quite a few people that like the convenience of a single device for music/phone functions. In addition, a stronger iPod for video-centric functions, the nano/shuttle continue on for go-anywhere enjoyment and, at some point, an all out entertainment hub for hi-fidelity.

    Ahh, but this is only speculation and daydreaming today….

  4. For some reason my first post was removed. I even saw it with my own (square) eyes. Maybe MDN doesn’t like me anymore.

    ” width=”19″ height=”19″ alt=”downer” style=”border:0;” />

    Well, here it is again in all its glory (complete with witty pun on the headline of this article).


    Ehhhhh…..I got nothin’.”

    ” width=”19″ height=”19″ alt=”hmmm” style=”border:0;” />


  5. First, analysts have no more of a clue than anybody else. In fact, the twinks and geeks in here that are Apple-addicted probably can see Apple trends better than anyone.

    Apple was asked about a phone and Apple replied that they are not just sitting around. I fail to see the connecting assumption that Apple is working on a phone at all. They are more likely working on an all new concept, creating an entirely new market or such a stunning product in an existing market such as the iPod and Imac are now.

    I really would like a job as an analyst. Who do I have to blow to get such a job?

    Maybe, I’ll just start a web page that I only have to steal… oops… copy and paste from other sites, splash it will all sorts of advertising (including the very first to put ads with their own RSS feeds which are suppose to be clear of ads!!!)… and give adolescent Apple geeks somewhere to mindlessly spout off… no… wait.. MDN is already doing that. Damn! Another good idea usurped.

  6. What I would love to see is Apple produce an iPod with bluetooth technology to act as a the interface device for any bluetooth enabled cell phone. You would leave your cell phone in your pocket or briefcase and just interact with your iPod to work the phone. A Bluetooth headset would also be an option.

    Apple could provide – with or without support from phone vendors — personality modules for each phone type supported. This way Apple could sell into the broad cell phone market without having to get involved with a technology that is not one of their core competencies. This approach would use Apple’s greatest strength, its interface design superiority to its fullest. They can leave their competition in the dust.

    Apple, just go for interface ownership of the mobile phone market.

  7. I think we have to keep in mind here that the mobile phone market in the US is ruled by the Wireless Providers like Verizon. It’s not the case in other parts of the world.

    The phones we get in the US are really crap, old, big and boring. You seen the phones they have in Japan?? Even the phones you get in little old Australia (my original home) kick arse over the ones you get here.

    Having said all that, I am sure Apple can do something good enough to beat them all! I just worry that this phone will get locked into Cingular or something.

  8. Anyone with half a brain that knows Apple, should know that they’re not just going to sit on there butts and wait for iPod sales to drop off a cliff before they do more R&D on new iPod designs and features. They’ve got the lead in sales, and the marketshare so obviously they’re not just going to stop everything and say that’s it were done. Some of these Analysts write there crap about such non-sense and it’s just so irratating! Why would they think anyone at Apple, especially Steve Jobs would be so stupid is beyond me. I’m sure by Macworld 2007 we will hear about the new iPods and the iPod boom will kick into high gear once more if not sooner.

  9. What if the iPhone won’t be locked to a cellular carrier?

    I’m thinking at least a version of it might be a Skype style phone. Look at the Belkin branded phone that just came out.

    If it was a Skype phone, it would really piss off a bunch of Cellular carriers. LOL

    Look at 2 of the advantages of a Skype-Wi/Fi phone: You could have a mobile version of Safari built in.
    Also Apple wouldn’t have to share any of the profits from songs/TV show/Movies bought from the iTunes store. That would be a win win for everyone.

    That way Apple won’t have to deal with changing the phones features just to make the cellular carrier happy. Cingular and Verizon are famous for doing this.

    Just some thoughts that I had, no concrete evidence.

    But I guess we’ll see what the future holds.

  10. High quality, customer profile demographics at the Bulls-eye of Apple’s market, patent issues resolved. Addresses the PDA & smart phone markets at the same time. Palm is on the outs and Apple can avoid Windoze PDA/SmartPhone OS at the same time. Add iTunes integration and you have a great product.

  11. Yea,
    I agree with Jeffrey, manufacture an ‘unlocked’ quad band phone…
    Do with it what ever you want.

    You won’t have to change carriers; just xfer your sim card.

    i’d pay 400 US$ to get what i want, when i want.

    mw= results, as an unlocked phone will get results in the ‘sold’ column.

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