Analyst: iPhone is Harry Potter "squib" of cellphones - Page 2

The old Toyota magic doesn't translate here...the Lexus is going to be much more difficult.

This analyst is clearly trying to be controversial to drive Internet traffic. Everyone wants to be John Dvorak, aka The Big Scary Apple Hater.

Oh please, you know as well as I that he would not be satisfied unless they could travel instantaneously, as well as having the ability to be in multiple points of space and time. Obviously

Well, since he uses a Mac now, I think he's more like, the 3rd grader who has a crush on Apple and teases her because he is afraid of what the other columnists will think.

Wow, talk about grubbing for hits! A double whammy!

Nice analysis, Draco.

By working it into his opinion, Kumar now gets to write off his expenses for buying Harry Potter books, those incurred during line-standing-related activities, and for the costume of a Dementor he had to buy (the scabby skin and soul-sucking capability are innate).

Of course, some analysts are such attention-whores that they need to glom onto the hot item du jour to get what they need. Had he written his analysis a few days later, he might have callled the iPhone, "the Lindsay Lohan of cellphones."

Now, keep in mind that 80% of analysts DO NOT match the performance of the market averages. That in mind, any analyst that quotes Harry Potter in an Apple iPhone review has to be near the bottom of the pack.

Lackluster? USA Today's poll indicated that 90% of iPhone owners were overwhelmingly happy with their iPhones. I am one. The iPhone has more "magic" in it than the first generation iPod could ever have hoped for. The more powerful "magic", that this guy couldn't see if it were in front of his face (which is exactly where it is) is the acceleration of earnings that is taking place at Apple (33% y.o.y.) on Mac sales (without any help from iPhone). And iPhone to that and growth will likely top 40%. Show me another company with a balance sheet as clean as Apples (12.5 BILLION in cash, 0 debt!) and I'll sell you the Brooklyn bridge.

The real beauty of iPhone is that Apple has a $300 profit margin per phone. And on top of that a $200 kickback from ATT and you get a 4GB phone that is PURE PROFIT! No wonder they want to spread it out. If they didn't they would be called capitalist pigs (which is a good thing for a corporation).

The point being that a phone with a $500 profit margin has plenty of room for price drops. But Apple can't drop the price too quickly so here's what comes first.... Buy an iPhone and we'll pay your contract termination fee from Verizon. That offer they could make tomorrow and STILL have $325 profit on the initial sale.

PLUS they get $9/month/subscriber on top of the initial profit.

All of this is gravy on top of Mac and iPod sales that were MUCH STRONGER than anyone had thought. Is there any wonder why several analysts raised their price targets today when the stock was down.

Incidentally the stock was down because it was perceived that Verizon got away unharmed by the recent iPhone launch as sales tapered off after the initial weekend. This is just the calm before the storm. Remember when the Razr came out? It was $500 a pop. And definitely not worth it. It sold well at first based on looks, but didn't sell really well until the price came down. Once Apple drops the price of the iPhone in the neighborhood of $100-200, they will be selling a ton of them. BEST OF ALL they will still have a $300 profit margin and the the $9/month!

And all that onto the great growth the other profit centers are generating for Apple and investors will flock to this safe haven of profit acceleration. No sub-prime mess here (Apple is debt free). And if home owners are struggling to make the mortgage just how did Apple manage to sell a record number of Macs in the past three months? I smell a sub-prime rat!

Apple is hitting on all cylinders and profits are accelerating upward. What more do you need?

This phone is only the first generation and it's already the best cell phone ever made. It was not intended for everyone and their mother to own one; it was specifically made with business people in mind. It has all the features of other PDAs and more with cleaner interfacing. There's already talk of the second gen of iphones being more mainstream in design with a little less of the features that most people won't use. Your Harry Potter analogy won't make you more popular or more people believe you. Take a look at all these posts.

I've been using Windows Mobile for a several months, and it's make me feel like I'm going back to Windows 95 all over again.
You know, I will go get the iPhone the first day it available in my country! (too bad I'm in asia, so I have to wait until 2008 )

Apple didn't want to raise the bar too high for their first product release.

I agree with the first three points but not the fourth. The iPhone is going to be a very successful business device for one very good reason: It's the only hand-held device that enables easy and comprehensive use of the internet which for many firms is indispensable.
That is the reason why it has already been adopted by some firms

I forgot to include this link (not the only one) as evidence of adoption by firms of the iPhone:-

http://www.careerjournal.com/hrcente...wingfield.html

Excellent analysis. Could not agree more!

The guy hasn't used the iPhone. The sucker just works! As promoted.

The guy hasn't used on. It just works as advertised.

Actually, You're wrong.

FYI: The iPod 5GB costed $399 in October 2001, the 10GB did $499 in March 2002.
I don't consider the iPhone's $499 pricetag extremely high, though.

Anyway:
No new Apple product had a good launch. (until now, that is)

The Macintosh didn't sell well in it's early years.
But it revolutionized the graphic industry and, because of the lack of better solutions, became the dominant player in this market. It took MS a decade to get something comparable on the market: Dos-based Windows 95. After that, the Mac lost its momentum.

The Newton...
Got canceled in 1998 after sucking up billions of R&D dollars.
Pen-based computing sucks (Don't tell Microsoft, though)

The iPod sold less than 6 million in the first 3 years of its existence.
Apple sold a lot more Macs in the same time.
In the next 3 years they sold 104 million iPods.

The problem with the iPhone isn't the product itself, it is the unrealistic unreasonable expectations people have of it.
It's a new, first gen, rev A product. It isn't flawless.
But it is the best new, first gen, rev A product ever introduced by Apple.

It had an unbelievable good start although there was no magic involved.
only hype.

By the way: This FUD-writing muggle should have known that a wizards-child gets it magical power when it grows older, not in 2 days.

You've actually used windows95?
So you're mudblood than?

I hate when they say that.

A lot has been discussed about the inability to install user apps or store files on the iPhone, it doesn't even support the portable drive option of iPods. While I definitely want all that, something for the IT people to consider... there's no risk if an iPhone is hacked or lost... since it can't contain any sensitive data other than what the camera is allowed to see. That's are real strength, and likely the reason that Apple is embracing web services. I can accomplish the same tasks online and the info is more secure than if it was stored locally.

1 - It's harder to find the info on the net (it's a big place)
2 - Trusted websites offer encryption of data & intrusion protection
3 - Ability to move info elsewhere should the iPhone get into the wrong hands

Cheers!

Why post this garbage. I just don't get it.....

Please answer the following and i will believe you...

1 - Does the iPhone offer a secure interface into a corporate exchange server?

2 - Where can a company actualy buy 1000 iphones from?

3 - What Business tarrifs are AT&T offering for the iPhone?

4 - How can a roving salesman swap his battery over for a fully charged one when spending a few days on the road and realising his charger is back in the office?

5 - can the same roving salesman connect his iphone to his laptop for 3G wireless access?

6 - How does one activate the voice dialling features of the iphone for use while on the road?

7 - Can a company install their mobile CTI & presence client onto the iPhone like they can do with other mobile operating systems?


So i get 7 negatives from those questions, maybe i am wrong, can you point out where i am wrong and show me how the iPhone can be a business device?

Apple did what it does well change the way we use cell phones but alas they are not a cellphone company.... they are a computer company. They were bound to miss some stuff. But what they did change was the many things that made cellphones ...well cellphones. The iPhone is now a computer that can make calls, and quite well. Like the iPOD and its many upgrades we will see 3G versions for europe. 3G in the USA just sucks right now. I find edge to be just fine.

As far as buying 1000 iPhones I'm sure Apple could hook you up.

As far as voice dialing... well now that I dont have to fumble with a traditional cellphone keypad and I have my numbers programed in already I just touch it.... its like changing a station on your radio.

Like many things everyone has to get over the way we have all been trained (held back) by all the cell phones out there.... THINK DIFFERENT.

With the utmost respect that is complete and utter bollocks! The iPhone is a phone. Apple will not shift 10 MIllion portable computers by end of next year they are trying to ship 10 million phones. In order to sell 10 Million phone then the iPhone needs to be a decent phone. I think at the moment that the iPhone is just an average phone, nothing too special, yes cover flow, yes full internet, but those are just decorations A mobile phone is primarily used to make voicecalls and SMS, that is what people want from a phone and in that respect the iPhone does not do anything that countless models from Nokia, Sony, Siemens, LG, Panasonic and Motorola do not already do better and cheaper. You guys are so deluded on this subject it is incredible. There is nothing wrong with being an Apple fan and still being able to criticise some of their products, in fact you would gain more credibility for it.

You're looking at it from the standpoint of comparing smartphone packages. But, Steve Jobs wants 1% of the cell phone market, not just 1% of the smartphone market. In that case he is expecting normal cell users like myself who pay $28-$35 for normal cell service to double that rate. I know it's not a bad data package (although you could say the network is slow), but in the whole scheme of things it's double the cost for me.

And why does apple sell more ipods now in 2 weeks than it did the first year? Because the one time fee for the ipod dropped significantly, while the storage went up significantly. If you think selling that amount of iPhones in the first weekend is an indicator of how the product overall will sell I think you are mistaken. To use your example, the first ipod didn't sell too good, but look at the lineup now.

Believe what you want... but when you get your hands on one call me back. Yes there is nothing wrong about critisizing Apple but when you make up stuff to just make news thats just "utter Bullocks"

All your points are valid. Ok. Your heard. But to not take into account all the things that Apple has done is wrong and narrow minded. I'm sick of seeing the one sided 3G, MS Entourage arguments.

We need a hundred more articles like this. Seriously. We all know the content is bull, but most shareholders don't. At least, those who buy shares in bulk trust the nutty analysts. And so, if we can get more nutty analysts to bash the iPhone, it will drive down share prices temporarily so we can all buy twice the number of shares we could right now. And then 10 months from now when the iPhone beats all the projections, AAPL prices will skyrocket and we've all made a bundle at the expense of the analysts.

Keep it up!

Most of Apple's products are a little expensive. But they're generally really good products. Apple show business growth all the time now, and people has learned to appreciate what Apple stands for. I'm rather buying a pricy iPhone than a stupid Symbian phone.

Its so true people who cry high price tag as the reason they wont get an iPhone or how it will fair are so short sighted, and have really very little idea of what it actually will cost. It reminds me of people who lease cars they cant afford with $0 down. The bottom line even with free phones, is you will pay for it one way or another, and the pricing plan for the iPhone is better than any other smart phone plan out there. My bill only went up $9.00 a month with the iPhone and unlimited data. If I would have gotten any other smart phone it would have been more like $20-$30.

It's funny he uses a Harry Potter reference, because "magic" is the exact word most people use when I show the iPhone to them.

Better lock the iPhone under the stairs before the neighbors start asking questions!

I am a huge Apple fan - But i don't have a iPhone because of the lack of choice in service provider and the price. But i don't feel the iPhone is a failure and I will consider getting one hopefully when there is a second phone company carrying an Apple phone and when they give us a better price.

Ding! Ding! Ding!

We have a winner!

If you don't already own an iPhone, then don't buy one. You can't handle the technology. I for one, however, love my iPhone.

1- It isn't up to the iPhone to offer the secure connection, it is up to the exchange server to do so....BTW it has been done, I'm doing it now.

2-Apple.com you'll just have to wait in line....BTW you are going to be hard pressed to buy 1000 Blackberry Pearls at once also, you will have to wait there too.

3-Not even sure what you are asking there. But as the iPhone is being sold as a consumer device currently, so I'll say none.

4-You can charge the thing with any dock connector either in your computer, in the wall or in the car. You'll spend less buying the cable than buying a battery, how do you charge anything when you realized you left your charger at home? Dock cables are $30, buy a few and stow them all over.

5-Can't think of why you'd want to, but http://www.iphonehacks.com/2007/07/iphone-edge-net.html

6-"The iPhone Bluetooth Headset features a single button that lets you make and receive phone calls simply and intuitively." http://www.switched.com/2007/07/20/v...ng-for-iphone/
(is this exclusive to business people only)

7-It is running Mac OS X, you can write it yourself. you see, that is the beauty of the iPhone is it is running Mac OS X, there are already people developing all sorts of stuff for it using nothing more than XCode.

Sure, some of these are hacks, but all that means is Apple doesn't officially support it, they didn't support running Windows on the new Intel Macs either, at first.

See, it doesn't have a radio! Nobody's going to use the things. And it only works with iTunes. And it's just because Apple forces you to buy all your music from iTunes! It's obvious that Apple lacks all the more advanced ideas of the Microsoft Zune or Creative's offerings, which have the common sense to work with the Microsoft standards.

I was at the Apple store at the mall the other day, and I'd like to know where the people are lining up three and four deep, waiting for a chance to feel the Zune and see how it works. What's that? Oh, nowhere.

On the other hand, I wish I had tried out my Razr before I traded off my nice Sony Ericcson last year. Yuck. I've got another year to wait for the contract to expire on that piece of crap.

I'm not sure, but I think any phone in the U.S. market comes with a deal with the network. Is there a phone that just works with every network? Even when you buy an unlocked phone, when you sign on to the network, it becomes locked on to that net.

The way to free up the iPhone lies through Washington, D.C.

I have never seen someone with a Zune in the 'wild'. I've seen them at my local WalMart but never seen anyone try one out or buy one.

Corporate mergers. If you can't with them over fair and square, buy them out. Resistance is futile, you will be assimilated.

That said, I'm pretty impressed w/ my iPhone, but there are some serious issues that Apple/ AT&T should resolve ASAP. AT&T service definitely sucks in Ann Arbor - I know , not a real metro area, but I switched from Sprint, and I almost never lost a call with them. And the lack of voice dialing is a hurt. The kids I work w/ really care about the (lack of) ringtones...

I believe tha Mr. Kumar is the Smeagol of analysts *gollum*

Perhaps it's you who is not seeing the big picture here. Apple Exec's and other investors were not targeting die hards here, since they agreed to a contract with AT&T was not the market genre, it's clearly about numbers. You can improve your first impression with a product with more planning.

When Leopard was delayed til October, I was devistated, but days later, it makes sense... why release a product pre-mature? better to wait, and have a better first impression. I think the iPhone would've done better in an October release, for the following reasons.

1) it's coming out the same time leopard does
2) It's just before the big holiday shopping season
3) They would've had a lot more features in the phone.

So, I don't buy the target market die hards, I really don't. This was rushed too quickly... I'm glad they didn't make this mistake with Leopard.