“With the launch of the hugely hyped iPhone in a few weeks, momentum investors are driving Apple (AAPL) shares to unexplored territory. The stock has doubled in the past year, to 122. Apple’s market cap recently topped $100 billion for the first time,” Peter Burrows reports for BusinessWeek.
“Hard as it is to believe, all the excitement surrounding Jobs and his new toy may actually understate the impact of this device on Apple’s fortunes. Beyond the hysteria surrounding its June 29 launch, the iPhone has the potential for adding a totally new, $10 billion-a-year business within just a few years. If Apple can expand so-called smartphones from a luxury carried by corporate road warriors into an everyday tool for the masses—combining the functions of a BlackBerry and an iPod—Apple could soon see a new growth tear,” Burrows reports.
“If Apple’s goal of selling 10 million iPhones by the end of 2008 seemed ambitious to some back in January when Jobs first unwrapped his new baby, few doubt it now. Wall Street speculation has gone from how much market share it can steal, to how much it can expand the overall smartphone market,” Burrows reports.
“Piper Jaffray Cos. (PJC) analyst Gene Munster thinks Apple could sell more than 40 million iPhones in 2009—enough to lift revenues more than 30% that year, and earnings by 40%,” Burrows reports. “Still, Apple will need to execute flawlessly. In units built and shipped, the iPhone launch will dwarf anything Apple has attempted. It plans to have 3 million iPhones ready for sale on June 29, two sources say.”
Full article here.
[Thanks to MacDailyNews Readers “LinuxGuy and Mac Prodigal Son” and “Drunk Cheney” for the heads up.]
@ January 24, 1984
I was just thinking this morning that I’d make up an image that said
” rel=”nofollow”>Don’t Panic for the splash screen on my iPhone.
Whow, too many comments here.
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Check out the iPhone killer at c/net. They call it a iPhone killer then in the very next breath say this:
“The HTC Touch features a technology called TouchFlo that allows you to operate the smart phone just by swiping your finger on the device’s 2.8-inch, 65,536-color touch screen. For example, swiping your thumb in an upward motion launches a page where you can access contacts, media, or applications, but we didn’t have much luck getting it to work.”
YEP, its great. Has great features “but we didn’t have much luck getting it to work.” PS, it runs on Windows mobile. Didn’t you just have to guess.
“Your great hardware features, our crappy non-functional software!!”
MDN word, off, as in we are off to see the wizard, the wonderful wizard of One Infinite loop.
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@ So Sorry Charlie
> I already have… etc.
You may already have all of those devices, mostly separate devices (as you explained). Lots of people do. But the iPhone is ONE device. I think you have successfully demonstrated why people will want an iPhone.
> My advice is to wait for rev 2…
Always good advice, not just for the iPhone.
> FINALLY someone in the press got the quantity correct – 10Mil BY 2008, not 10Mil IN 2008.
Actually, the article got it WRONG. It is 10 million units IN 2008. Go listen to the last three minutes of the MacWorld 2008 keynote again.
http://www.apple.com/quicktime/qtv/mwsf07/
(also available as a pocast in iTunes)
Not that it matters. Apple will easily do 10 million units “by the end of” OR “in” 2008.
@ ChrissyOne
No hard fealings. We need good Mac people shinning a light on the FUD around here. But please watch your language, Z@#^ is a four letter word and children read this board.
@ Mr. Reeee
I have all my teeth (and a brand spanking new Apple Store just over the hill). Sorry to see you still have your prejudices.
Forrest Gump is from Alabama. And that’s good enough for me.
macaholic
This is the part the naysayers never seem to get. They assume that the smartphone segment of the market is static or nearly so. They are wrong.
The problem is so many of the naysayers seem to be tech nerds who already dislike Apple because it made the home computer a reality. Why else would most of the naysayers rely on a ridiculous laundry list of BS all centered around business and nerd requirements? The Blackberry is a successful product from a smart company, but when compared against the hundreds of millions of phones sold annually, it’s not very significant. Apple has made a device that takes the microcomputer to the masses and skips right over the whiny dorks fretting about specs and the 5 people on Slashdot who claim they edit Excel spreadsheets on their WinCE phones.
Long story short: the naysayers don’t get it, and worse (for them), they just don’t matter. The public will decide, and it won’t have a damn thing to do with “push” email.
Re: Naysayers
I think you’re right – I think tech nerds will never forgive the fact that Apple made it possible from someone without a computer science degree to be able to use a computer effectively. This provincial attitude is very similar to what I see in the photography world.
For ages, to be a good photographer, you first had to know how to use The Box. And for so many photographers, you know, the type who sit in church-basement camera-clubs and talk all night about lenses, the ability to work the box equated to being a good photographer. Never mind people skills that a portrait photographer lives by, or the skill, timing, and guts it takes to be a good news photographer, or the patience needed to shoot nature. If you were an expert at the science of the box that meant you got paid.
But now any idiot can shoot a properly exposed image, so the mystery of the box becomes irrelevant to a certain degree, and a lot of photographers did NOT like this. Many of them still use film for the same reason. But making great images is never about the technology, that’s incidental. It’s about the image, however you can get it. Being a geek and knowing the science is all well and good, but it does not make you an artist.
I think the MCSE types really hate that Apple has rendered them so redundant. At one time you have to hire a guy to set up a small business server and web hosting for you. Now you can do it with a few checkboxes in OS X. Is this what they loathe? I think so. I bet it will really irk them when 10 year old kids are all emailing from their phones with more elegance and ease than they could ever provide. Personally, I can’t wait to see what happens.
-c
MW: ‘country’ (feedback)
Interestingly enough the hitchickers guide requires the availability of a device that uses the well established OUI (Object User Interface) and an Outstream, none of which are available on any locally made device on this planet at this time. Fortunately though towels are, so relax.
> Actually, the article got it WRONG. It is 10 million units IN 2008. Go listen to the last three minutes of the MacWorld 2008 keynote again.
Whoops, I forgot “the end of”, as in “by the end of 2008”. MDN frequently quotes this too when reporters get it wrong.
bloggers are stupid