Analysts and investors applaud arrival of Apple iPhone

“Analysts and investors alike applauded the long-rumored arrival of the Apple iPhone at Tuesday’s Macworld in San Francisco, where CEO Steve Jobs showed off his company’s continued knack for user-friendly design and forward-thinking products,” Katie Dean reports for TheStreet.com.

“The newest device has been a boon for the stock. Apple shares soared to close higher than 8% over the previous day, and were nearing the $100 mark Wednesday after posting a new 52-week high of $97.80,” Dean reports. “The stock was recently trading at $96.24 in more than double the usual volume.”

Dean reports, “‘The phone was far more impressive than we imagined it would be, and it appears to be worth the wait,’ JP Morgan analyst Bill Shope wrote in a Wednesday note. ‘We believe yesterday’s introduction marks a significant rebound in product innovation for Apple and extends the company’s powerful consumer franchise,'”

MacDailyNews Take: “Yesterday’s introduction marks a significant rebound in product innovation for Apple?” Come on, now, at least make some sense when babbling. Apple doesn’t need to “rebound in product innovation” they’ve been innovating for years.

Dean continues, “‘We think that Apple has delivered yet another innovative product, exceeding most expectations,’ Prudential Equity’s Jesse Tortora wrote in a note to investors. The design ‘is elegant and the device appears to continue Apple’s traditional strengths of an intuitive interface and seamless software integration,’ Tortora wrote.”

“Though the device will cost more than he expected, Tortora noted that Cingular may offer rebates to lower it a little. He also expects Apple to introduce scaled-back phones at lower price points to attract mass-market adoption,” Dean reports.

“Cannibalization of iPod sales doesn’t seem to be a chief Wall Street concern,” Dean reports. “Standard & Poor equity analyst Richard Stice says that even if the number of iPods sold is sliced in half, the iPhone launch ‘would still be accretive to earnings because you’re getting a higher price point.’ Jobs said Tuesday that Apple aims to sell 10 million handsets in 2008 — its first full year of iPhone sales — which would be 1% of the mobile phone market worldwide. ‘We think that (Jobs’ estimate) is reasonable but somewhat conservative,’ Stice says. ‘We think they could potentially do better than that.'”

Full article here.

Related articles:
eWeek: Apple iPhone fallout: ‘They must be crying in Nokia-ville and other telephony towns today’ – January 10, 2007
Top 10 things to love and top 10 things to hate about the Apple iPhone – January 10, 2007
How Apple kept the iPhone top secret for 30 months – January 10, 2007
Hands-on with Apple’s iPhone – January 10, 2007
The only thing really wrong with Apple’s iPhone is its name – January 09, 2007
Is Apple building ‘The Device?’ [revisited] – January 09, 2007
Analyst Bajarin: Apple’s iPhone and Apple TV are industry game changers – January 09, 2007
Time: ‘iPhone could crush cell phone market pitilessly beneath the weight of its own superiority’ – January 09, 2007
Analyst: Apple iPhone should be given its own category – ‘brilliantphone’ – January 09, 2007
Cingular to use Synchronoss Technologies’ platform for Apple iPhone – January 09, 2007
iPhone photos from Apple’s Macworld Expo booth – January 09, 2007
Enderle: Apple’s iPhone is going to do very well – January 09, 2007
Apple debuts iPhone: touchscreen mobile phone + widescreen iPod + Internet communicator – January 09, 2007

22 Comments

  1. Giddiness. The real news is Steve’s announcement that he didn’t have anything to announce about the Mac other than he had to change the company’s name to reflect that Apple is no longer in the computer business.

  2. MDN Take: “Yesterday’s introduction marks a significant rebound in product innovation for Apple?” Come on, now, at least make some sense when babbling. Apple doesn’t need to “rebound in product innovation” they’ve been innovating for years.

    Right on MDN. It would be nice if these “Analysts” were capable of being objective. This guy either doesn’t have a clue about Apple or he’s incredibly disingenuous.

    Either way he’s putz.

  3. To Big Al
    Don’t be such a sick dick. They pay me nothing. It’s a very upsetting problem. You say that because it’s not your computer. Apple is ignoring hundreds of users with the same problem. If you own a 17′ PB prepare yourself, it will happen to you! It starts with a single vertical line. Do a search.

  4. Dutch,
    They’ve sold millions of powerbooks and all you’ve got is 48 substantiated claims and 12 un substantiated? And you’re posting on the web? Maybe you should have bought the extended warranty or taken a little better care of the machine!

  5. You folks are really big morons. How can you base your numbers on a single website reporting the problem? There are dozens of others more. The problem usually starts after 2 years of usage. We are about to see many more people with the same problem in the next months or years. Just wait and see.

  6. There is one thing that I don’t understand. I am happy for the iPhone introduction, but what about all the developers who are there at MacWorld just for Leopard and the new features. I am very anxious for Leopard
    and iLife. I always thought that is what Macworld is all about. I know the iPhone introduction needs a venue like MacWorld, but I am very surprised that Leopard and iLife got completely left out. I hope we will see something real soon, but will it be a staged media event to do so? I am keeping an open mind.

  7. Re “Cannibalization of iPod sales doesn’t seem to be a chief Wall Street concern…”

    That’s pretty boneheadedly obvious. You never worry about cannibalization when introducing a product with a higher unit contribution margin than that of the original product. You might worry about the fixed costs of the new product, but not cannibalization.

    Come on, TheStreet.com, you can do better.

  8. This is completely off topic, but i need a question answer and I’m hoping someone here knows the answer. My sister fried her iBook (dropped water on it) and wants to try to mount the hard drive on my Mom’s iBook via the firewire connection. She’s worried that a power surge could be transmitted to the working iBook through that connection (since hers was popping and fizzling, and is seriously hosed). Is that possible?

    On the bright side, she’s getting a new MacBook ” width=”19″ height=”19″ alt=”smile” style=”border:0;” />

    Thanks!

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