AT&T, Apple differ on the iPhone gap

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Financially speaking...: Something that you have to remember about finance - although Apple figured out a way to make their numbers look good, ie sell a lot of phones with only 2 days left in the quarter, there is an issue of trends. When I speak of trends in this context, I don't mean that it's "trendy to have an iPhone" I'm talking about corporate financial trends. Apple is quite volitile, it seems from their financial trend data. The company has spikes of growth, such as when they release a new gadget (new generations of iPods for example), and then a drastic fall-off until they do it again.

The answer is most likely this -
Apple puts out something new, and Mac fans rush for it. However, only 5% of the population is a true Mac fan, so once they have sold a gizmo to all of those people, no one else cares anymore. The exception to this rule seems to lie in the iPod, but it still took them initially loosing money before they realized that if they would enable iTunes to work with a PC and not just a Mac that they may actually sell some of them.

If they can keep the iPhone ball rolling, they will continue to do well, but I have to tell you, anyone who can afford a $600 phone that isn't even a smartphone or a PDA has probably already got one. I wouldn't look for sales of this product to skyrocket, I'd look for it to fall off, at least until they release a newer, better, cheaper one.

Laura; Posted by: laura.b Posted on: 07/26/07 You are currently: a Guest | Members login | Terms of Use