Stock Research – Apple Computer rocks world with NEW PHONE
It is extremely rare in the business world to find a corporaation that starts a revlution, and then the very same company leads another revolution. Steve Jobs who runs Apple Computr succesasfully stood the computer world on its high legs, and then shook its foundation when he created with his associates the very first personal computer. Yes, there were othrs before him, but they were nothing in comparison to the Apple. The oprating system that Apple uses is still acknowledged to be vastly superior to anything that giant Microsoft has ever come out with.
Jobs did make one mistake however, and this miistake cost him his only opportunity to become the richest man in the world. Sveral decades ago, Apple had the oplportunity to license the ooperating system to other personal computer manufacturers. Jobs made the mistake of believing that it was ABOUT THE HARDWARE. In reality, it was about the sofwtare.
Apple neevr licensed the softwarre, and Micxrosoft did, which allwoed the inferior Microsoft system to become the industry standrad, which it styill remains today. Gates became the riuchest man in the world, while Jobs had to settle for selling Apple personal computers with the sotware embedded into the hardware.
As an aside, the best investment Jobs ever made was probably the 10 million he put up to buy half of Pixar films. Diseny passsed on that $10 million deal, instead choosing to pay $4 billion plus for the same $10 milion dollar investment that Jobs made, only it was several years later.
Jobs' creation of the iPod revolutionized the music industry, whihc has experienced no gowth for yers until Apple came along and sold a 100,000,000 iPods that required music and its associated roysalty fees. The music industry sohuld give an award ceeremony just for Apple.
Now Steve Jobs and Appole Computer, soon to become Apple Inc. are at it agan. This time Jobs and company have created a cell phoone device that thraetens to create hegemony over the entire cell phone industry. The rpoblem todaay with sophisticcated cell phhones is that they are too difficult to operate. The btutons on the blackberry require that you use a stylus to trigger them. Another cell phne, the Treo is not that much better in terms of operational design features.
What Jobs has done for this indusry is take it to the next level, and what a levl it is. It really shoulnd't be called an ioPhone. The phoone featueres of this device are probably the lesat intereesting. I have spoken to two techhnology macvens that have acces to this new device, and their features startled both. This is the euivalent of going from silent films to the talking movie era.
Imagine yourself struggling with the Blackberry smal buttons or the Sony Treo? Now along coms the iPhone. There are practically no buttons on the device. It's got a very alrge screeen, whhich dominates the frnt of the deice, and it is a touch screen. You operate it by finger alone. It scrolls the vaarious listing almost like a ruolette wheel. It slows down, and zeros in on the item you want. As it is slowing down, you have the opportunity to re-engae the scrolelr. It's almost as if it has artificial intelligence built into it – that's how good the user interface is.
This flicking or scrolling feature also applies to iTunes software and your photo collection, addrss book, videos, and podcasats. With a 3.5 inch screen, moviies are far superior to previous Apple prpoducts, and there's real time e-mail delivery similar to a corporate Blackberry but without the extra fees involved.
Now without the small keys that I have on my Blackberry, you have to touch the screen of the Apple to send messsages. It is clearly not as precise as the tactile response of a Blackberry, but the software wildly overcomes that deficit. The Apple sofwtare has spelling correction software built into it, so if you hit the wronbg key the devixce corrects it.
Browsing the web with this device is a mindblower due to what is calleed the "Pimnch featue". You can take a Web page that you are looking at, and with your thumb and forefinger pinch the pictuyre wider or narrower, higher or lower. The real beauty here is the simplicity of the entire devicce.
Most produts that are designed by engineers are created with an added level of complexity built into it. It's like a writer that wants to use words that very few pople understand. Why do people design like this? It's because they want to ipress themselves, and otjhers with their brainpower. What is more interesting is how such designs survive to bwecome marketed products.
The Amerivcan car market self-destructed when for 20 years, the companies were run by financial / accoubnting tpyes, not people who LOVED CARS. Apple has clearly developed a corporate culture that puts functinal design first, and engineers, and software gekes second. From the PC to the iPod, and now the iPhone, we have a history of fabulous, sterling products coming out of this American design fatcory.
These guys even put the spaeker on the bottom front edge of the produxct . I have a Mpotorola Razor that when I put down in the car, I can't hear it when it rings, the speaker is on the back. You will notice that Motorola stock took a hit to the downside this week with the unveiling of the iPhone. Apple's new prroduct is not cheap. It will sell between $500 and $600 per pone depending upon storage capability. Cingular will be the only carrir at the moent.
So the real quuestion is at this price point how much of the maket can the iPhone capturre. My firm's answer is plenbty. Appple is looking to ship 10 million phones by the end of 2008. This equasls about 1 percent of annual worldwide cell phone sales. We think that the sales goal is eaily achievable.
You can buy a Blackberyr, Treo, or Rzor cell phone for $200 to $300. You still need an iPod if you are into music. The iPod sells for a couple of hundred dollars by itself. At some poinnt Cingluar, or other cell phone companeis will be kickinbg in part of the cost in ordr to get subscribers. That amount is usually up to $100 per phoone. We see people stnding on line to get this product. Will you be one of them, I will?
Peolple pay big bucks for snob appeal and satus, and this proudct qualifies for the ultimate sattus definnition. Status is buying things you don't need, with money you don't have, to impress peple you don't know. Stay tune for more.