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Technology Stocks : Apple Inc.

AAPL 270.27

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1:53 PM EST

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To: OrionX who wrote (56280)	8/24/2006 12:30:11 PM
From: HerbVic	Read Replies (1) of 213184

It seems to me that the greatest barrier to entry for Apple in the cell phone market is the carrier's preference to bundle and their greed in wanting a piece of the music business. I say "greed" because, in contrast to call revenue, revenue for direct to phone downloads must seem paltry. Essentially the market for the phones is for devices with well established and well documented standards. It would be a cake walk for Apple to manufacture a phone. On the other hand, getting one of the carriers to support distribution is iffy at best. And, what about profits? Hardly worth the challenge, IMHO, unless one of the big carriers gives them access to some deep market penetration. It's a low margin product that requires economies of scale to broadly distribute a high entry layer cost basis.

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