Apple ‘iPhone’ could disrupt mobile service distribution channel

“New hardware isn’t the only way Apple can shake things up in the mobile industry. The company has the ability to disrupt the entire distribution channel, which is currently controlled by cellular service providers,” Daniel Eran writes for RoughlyDrafted.

“The control maintained by service providers has slowed the advance of hardware features and the emergence of new competition for service,” Eran writes.

“Apple’s position as a hardware maker with retail stores and software expertise allows it opportunities unrivaled by other phone makers like Motorola, software middleware providers such as Microsoft, and services providers that simply resell subsidized phones in an effort to sell minutes,” Eran writes. “In 2007, Apple has the capacity to flip the entire mobile world on its head, with the same quiet speed it has used to reinvent itself as a specialized Intel PC maker. It will be fun to watch.”

Eran explains how, once again, Apple could be poised to disrupt the status quo in his full article here.

24 Comments

  1. The greatest benefit Apple could provide to the mobile phone world would be an iTunes model of being able to select the services you want from a menu that allowed you to avoid stuff you didn’t want that you had to pay for anyway.

    THAT, my friends, would be a real revolution that would turn the corruption of price fixing and advertising fraud from this industry on its head!

  2. I, and I think many AAPL investors want Apple to produce something revolutionary and Earth-shattering, that will fuel explosive growth into new sectors, as the iPod did many years ago. That revolution is peaking, and investors’ sentiment about this is vividly displayed in their massive sell-off of AAPL over the last month. The sell-off continues as AAPL is heading towards 80 today. Anything less than revolutionary promise of upcoming product releases will drive AAPL down to 70 in an equally short period of time, and very likely lower. If the rumoured phone is anything shy of astounding, watch out. If ‘iTV’ doesn’t offer an experience beyond what everyone is expecting AND come with a vastly expanded movie and TV show offering in iTunes, gravity will kick in big time for AAPL.

    These are the facts as I see them, without prejudice or bias.

  3. Cold Hard Reality:

    “I, and I think many AAPL investors want Apple to produce something revolutionary and Earth-shattering, that will fuel explosive growth into new sectors, as the iPod did many years ago. That revolution is peaking, and investors’ sentiment about this is vividly displayed in their massive sell-off of AAPL over the last month. The sell-off continues as AAPL is heading towards 80 today. Anything less than revolutionary promise of upcoming product releases will drive AAPL down to 70 in an equally short period of time, and very likely lower. If the rumoured phone is anything shy of astounding, watch out. If ‘iTV’ doesn’t offer an experience beyond what everyone is expecting AND come with a vastly expanded movie and TV show offering in iTunes, gravity will kick in big time for AAPL.”

    I’ve followed AAPL daily for years now, and I’ve gotten profits of over 1000%. What’s driving the price of AAPL down lately is hedge fund manipulation. Illegal and unethical? Sure! Is it a reality? See Jim Cramer’s recent interview on hedge fund strategy:

    http://publish.vx.roo.com/thestreet/portal/?clipId=1373_10329438&channel=Cramer+On+Demand&puc=mktw&bt=NS&bp=MAC&bst=SF&biec=false&format=flash&bitrate=300

    AAPL fundamentals haven’t changed.

  4. Cold, Hard Reality

    I dont’t think you have a correct reading of the current AAPL status. I think investors are selling to bring the price down so that they can soon buy back in anticipation of another giant leap forward. I don’t know of any other stock that can make such giant strides ( with the exception of Google, perhaps).

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