January 17, 2007 5:15 PM PST
Apple's iPhone has Wall Street chattering
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Executives didn't have any new revelations about Apple's iPhone after CEO Steve Jobs unveiled it last week at Macworld. The company held a conference call Wednesday afternoon to discuss its first-quarter results, which exceeded expectations by a large margin.
Apple's iPhone is essentially a widescreen video iPod that makes phone calls and can browse the Web, and the company plans to ship it in June for Cingular's cellular network. One of the more persistent questions about the iPhone has been Apple's decision to use Cingular's EDGE (Enhanced Data Rates for GSM Evolution) network. That will get you online at around 75Kbps to 135Kbps, not much faster than dial-up.
Apple chose the EDGE standard for the iPhone because that standard is found in many more locations than Cingular's much-faster HSDPA (High-Speed Downlink Packet Access) technology, said Peter Oppenheimer, Apple's chief financial officer. "Obviously, we'll be where the technology is over time," he said, alluding to the fact that an iPhone with support for speedier networks is a likely bet for the future.
Chief Operating Officer Tim Cook declined to comment on some other inquiries, such as whether users will be able to replace their iPhone batteries and the projected gross margin for the product. However, Cook did mention that Apple should have more to say about projections for the iPhone during next quarter's earnings call and that the company will release more specific information in June before it launches the product.
With regards to Cisco Systems' lawsuit against Apple for using the iPhone trademark owned by Cisco, Cook read the same Apple statement distributed last week by public relations staffers. "We think the Cisco lawsuit is silly," he said.
Financial analysts are so curious about how Apple's iPhone will affect iPod sales that one actually asked if Apple anticipates a slowdown in iPod sales during the upcoming quarter as people wait for the iPhone to arrive. Oppenheimer demurred, saying "it's really too soon to tell that."
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If Apple makes an iPhone, minus all the actual Phone stuff (no
Cingular, no EDGE or GSM, etc. support); only an iPod and
internet communications device and sell it for $400, I would buy
one! I don't own a cell phone; never have actually, and won't for
a while.
If they integrate iChat AV so once city-wide WiFi becomes
available, this new "iPod" will be able to make audio and video
chats commonplace WITHOUT the cellular networks!!
I would love this "computer/communications" device in my
pocket and think it would be an awesome evolution of the high-
end iPod! Apple would continue selling loads of these things.
Each household would probably buy more than one as they do
with cell phones. Without the cellular networks they wouldn't be
spending for the monthly plan. They would probably save money
in the long run. Especially if Apple comes out with different
levels of the iPod/Communications device at varying price
points.
I think Apple is paving the trail for computing of the future. It's
very exciting and the iPhone is only a "foot-in-the-door".
cisco Name and goes o to say that Microsoft sells an operting
system for smart phone and call apple a third party with a vague
copy of what it ready does. No wonder Ballmer's upset
Nothing about what the iPhone can and can't do
IS THIS DVORAK A CREEP OR WHAT!
It's a cool product with an amazing interface and large screen but for it to get market share it will have to come down in price IMHO...
Yea, it's a super cool phone - no question.
But it's expensive, and for all that expense, now you're stuck with Cingular. I don't wanna shovel out that much money on a phone, only to have it tie me to a single provider, let alone Cingular. If the price were lower, it'd be a no-brainer, but it's not a low price.
I love Apple, but I'd be shocked if this thing made any real waves at it's current pricing.
Charles R. Whealton
Charles Whealton @ pleasedontspam.com
Q: Are all the other cellphones green?
Q: Are all the other MP3 players green?
Q: are all the other internet surfing & email pushing devices green?
Q: what should an iPod + cellphone + blackberry cost?
If Microsoft is from the Silicon Forest, then why isn't the ZUNE green? (Oh, that's right...it is. It's just a recycled iPod / MP3 wannabe / me2player)