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Technology Stocks : Apple Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Pam who wrote (56675)	9/11/2006 8:47:27 PM
From: inaflash	Respond to of 213183

a. Can Apple have a 1-2% marketshare in a 1B+ units/year market in 2007? What kind of marketshare can one expect for Apple in this highly competitive cell phone market in 2008 and beyond? If they announced a great product tommorow and released it in the first half of 2007, getting 1-2% is achievable with Apple's brand. b. What kind of ASP/U can one expect for their iPhone? What kind of margins can one expect? Will it dilute or expand margins? The margins would be similar to their other electronics (20-25%) in volume, assuming a successful launch, but startup costs will overshadow any meaningful early numbers. c. Will this growth come at the expense of low to mid-end flash based mp3 players? What would be net impact on Rev growth? That would be the key question. Will it canibilize low end sales, upper end sales, or be additive? Most likely all of the above. It all depends on what wonderful features are included, but if it's truly a great cell phone with all the capabilities of a nano, the only thing that will keep it from being a home run will be the $500+ price tag. Now if they had an iPod nano for $200 and charged an extra $50-100 for a nice cell phone feature, they'd soak up a ton of sales! They're going to have to do something in the near future, since phones are taking over the music arena. Despite all the advantages of a nano, I'm looking forward to the day I can drop that device from the half dozen things in my pockets.