“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
I for one was ready to pre-order one. Sadly, I cannot.
Well, I’ll be happy with the wireless N router and Apple TV.
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.
the iPhone IS a Mac! Runs OSX!
is it hard to talk out your ass while sitting down?
I think this will be the start of a massive new line for Apple. Once they come out with iphone nano they’ll be selling them by the zillions.
Somewhat related: a friend sent me this link – funny picture of new iphone http://dtyler21.wordpress.com/2007/01/10/eds-iphone/
I feel reluctant about this new device. Will the iPhone display be plagued by the same vertical one pixel lines that are plaguing my PB 17′ right now?
Take a look:
http://www.crosspond.com/apple.php
See people talking about it:
http://discussions.apple.com/forum.jspa?forumID=1020&start=0
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.
Dutch,
How much does Microsoft pay you to be such an asshole? Do you feel dirty?
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.
Dutch:
Yes, of course they will, seeing how similar the screen technology in your PowerBook is to that in the iPhone.
Dutch:
48 substantiated claims. (whatever that means)
12 unsubstantiated claims.
“Apple is ignoring hundreds of users with the same problem.”
60 != “hundreds”
Fact.
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!
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.
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.
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.
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
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Thanks!
I liked the Slashdot summary for the introduction of the Apple iPhone.
Quote: “Seriously, go check this out. They’re going to print money with this thing.”
“We think that (Jobs’ estimate) is reasonable but somewhat conservative”
No sh|t. 10 million is going to seem a laughably low number once they go on sale. Think Cabbage Patch Kids.
Did you check the volume on AAPL today? 105 million shares. 3 times average. That is huge. Serious investors know what’s going on and they’re finally getting on board.
Apple did just enter the ‘tough, crowded, competitive world’ of mobile handsets. It just took it over.
-c
MW: ‘sure’ (won’t be much joy in Redmond or Round Rock for a while)
Cisco seems not all that happy about the iPhone (and just when it looked like that was going to be handled like gentlemen):
http://www.marketwatch.com/news/story/cisco-sues-apple-trademark-infringement/story.aspx?guid={633490AA-F126-47AA-A87D-E88DEC77B65C}&sid=6458&symb;=
correction to many people out there but Apple is not out of the Computer Business but they just make more than just computers now so watch what you say cuz they are still in that market but are also involved in others.
too much , too much said, “the iPhone IS a Mac! Runs OSX!”
You are exactly right. And when the buyers get their hands on the iPhone and the sure to be introduced OS X based iPods in the near future, they will actually be buying Macs and learning OS X and some of its apps. This is the halo effect on steroids!
Re “Cannibalization of iPod sales doesn’t seem to be a chief Wall Street concern…”
Wow. That’s quite a statement. I think most economics professors would say that if a $500-600 item cannibalizes sales of a $79-299 item- THATS A GOOD THING, YOU FRIGTARD!
Jeebus.
Just imagine if poor Toyota couldn’t sell Corollas because people kept snapping up Lexi instead!
As for Apple getting out of the computer biz- don’t be an imbecile. Apple has some very spectacular and elaborate patents for touch interfaces. Now that we have seen part of them come to fruition with the iPhone, you can bet we will be seeing all of them showing up at some point in all-new iMacs etc- they might even be part of the “secret features” of leopard.
Apple has years of Mac innovation and R&D in the pipeline- don’t kid yourselves. Steve is not gonna rest til he’s saved everyone he can from M$ hell. His ego wouldn’t allow it.
Speaking of Apple patents, one which blew me away when I read it, sounded very much like something from the Spielberg film “Minority Report”- remember when Tom Cruise was manipulating his heads-up display by sweeping and swiping his hands across the “screen”- Apple has a similar sounding patent for a touch screen computer interface (or at least a patent filing.)
If you are concerned about Apple’s future in computing, check out Macsimumnews.com- they have a whole section devoted to Apple’s patent filings. Some very heady stuff there…
http://macsimumnews.com/index.php/archive/list_patents/C25