RealMoney: Apple just blew up the whole damn mobile-phone supply chain with its new iPhone

“The mobile-phone supply chain is a highly complex machine with countless moving parts, including phone makers, component suppliers, telecom carriers, government agencies and infinitely fickle consumers. Well, Apple just blew the whole damn thing up with its new iPhone,” Michael Comeau writes for

Comeau writes, “In terms of style, the iPhone is the most impressive consumer electronics product I’ve seen in some time. With its big touch screen, innovative keyless interface, decent storage capabilities and OS X operating system, there is simply nothing like it on the market. I mean, just take a look at this thing.”

“It isn’t cheap at $499 or more for a two-year contract with Cingular, but that doesn’t matter now because of the huge pent-up demand. Let’s not forget, Palm has introduced past Treo smartphone models in the same price range, so it’s not a stretch for Apple to do so, especially considering the rich feature set,” Comeau writes. “The iPhone is a fantastic strategic move by Apple. When everyone targeted the original iPod and the iPod Mini, Apple killed them and put out the Nano and the video iPod. Then everyone targeted the Nano and the video iPod, and phonemakers such as Sony-Ericcson and LG cranked out music-enabled phones to benefit from the digital-music boom driven by Apple. So Apple drops the iPhone on them.”

Comeau writes, “And let’s not forget that Microsoft, which tried to kill the iPod with the ill-fated Zune, now has a new mark in the iPhone. Apple is a moving target of the deadliest kind… This phone will stand out in any phone store, and there is now yet another reason for countless consumers to wander into an Apple store, where they just might also walk out with a Mac.”

Comeau writes, “The major phone makers are now in even more serious trouble. Motorola’s recent guidance cut was the result of weak pricing, as unit growth is being driven by low-cost models favored by emerging markets. However, now Motorola and the other phone makers have a major new competitor in the higher-priced developing markets, one that is poised to take market share as quickly as it can produce its models.”

Comeau writes, “I would definitely think twice about holding the stock of any other mobile-phone company… I believe that the success of Apple’s phone initiatives has the potential to dwarf that of the iPod and represents an annual revenue opportunity literally in the tens of billions of dollars.”

Full article here.

Related articles:
ZDNet: Hands on with Apple’s iPhone: ‘elegant, ravishing, simple, sleek; impeccable & intuitive UI’ – January 11, 2007
Apple iPhone FUD campaign begins – January 10, 2007
Nine ways Apple changed the face of consumer electronics yesterday – January 10, 2007
Analysts and investors applaud arrival of Apple iPhone – 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

FUD Alert: Analyst – I am pretty skeptical Apple’s iPhone can succeed – January 11, 2007
The Register’s Ray: Apple ‘iPhone’ will fail – December 26, 2006
Analyst: Apple iPhone economics aren’t that compelling – December 08, 2006
CNET editor Kanellos: ‘Apple iPhone will largely fail’ – December 07, 2006
Palm CEO laughs off Apple ‘iPhone’ threat – November 20, 2006


  1. According to our reporter on the the scene Mr Midlothian, Microsoft has just pre-announced the ‘Phune’ as a closed solution. It can only make calls with other Phunes and even then you can only call them three times or over three days, which ever comes first.

    The first models will come in brown and will only integrate with Vista-based computers so the potential market is in the tens of tens.

  2. I believe that those companies deserve what they are getting and much, but much more. Because of their crappie phones, there were useless phones with useless features, with complicated configurations and crappy applications. Since you have no option but to buy a junk telephone or to buy the junkies one. But now, you can buy a Junk, or you can buy a REAL communication device with REAL useful functions and REAL easy of use. If iPhone does not reach the market, at least the other companies now will fell the pressure. Thanks Apple. LONG LIVE TO APPLE!

  3. “And let’s not forget that Microsoft, which tried to kill the iPod with the ill-fated Zune, now has a new mark in the iPhone. Apple is a moving target of the deadliest kind… “

    I think this person forgets that MS has the power of being able to partner. That not only gives them a better chance to hobble their device at the behest of various partners, but to slow development to a crawl. I can see it now: ZuPhone
    See, it’s better because it allows you to share music (with crippling DRM, of course). Also, they’ll skip the cumbersome touch screen and have a nice microQWERTY keyboard instead with plenty of function keys!

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