@Jeff Gamet

> Most profitable isn’t the same as having the most marketshare, but it still
> speaks volumes about Apple’s ability to sell lots of iPhones at a nice profit.

What it speaks to is AT&T’s desperation to gain share, even at the expense of giving Apple the sweetest subsidy deal of all time.

Meanwhile, it raises some interesting questions. (1) What will AT&T do, upon losing their iPhone exclusive. (2) How - if at all - have AT&T prepared for that eventuality, so as not to lose back some of their gains? (3) What will Apple do, upon losing the tremendous cash-flow of their utterly unique AT&T agreement? (4) How - if at all - have Apple prepared for that eventuality?

> The smartphone market is changing, and companies like Nokia are going
> to have to work hard to stay on top of the game.

(5) How will Apple adapt to a new smart phone market, filled with ‘good enough’ Android handsets (in every country and cell network) selling for $50…or perhaps at _no cost_, with any new, 2-year voice/data contract?

“There’s no chance that the iPhone is going to get any significant market share. No chance. It’s a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I’d prefer to have our software in 60 percent or 70 percent or 80 percent of them, than I would to have 2 percent or 3 percent, which is what Apple might get.” -Steve Ballmer

I believe the iPhone is around 13-14% of the smartphone market now….

:O
Where did you get this stats from?

Gartner.