The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
This is Apple ... Hold Please

This is Apple ... Hold Please

by , 12:30 PM EST, December 26th, 2006

Apple has remained silent about a cell phone. Some people are wondering if this is the right time to buy Apple stock, or defer. And if Apple does ship a phone, people are wondering how it will fit into the existing structure of the cell phone business. These were the issues brought up in a Wall Street Journal article Friday. [Subscription required.]

All of Apple's issues were laid out. Will an Apple cell phone with music capability cannibalize iPod sales? Next, Apple's stock is already considered overvalued by some. Buying now could be a risk if the Apple cell phone disappoints. However, the article also proposed that Apple has a huge opportunity. Six million cell phones sold in 2007 and 12 million in 2009 would generate an estimated US$5.41B in revenue.

There are other considerations cited: "Apple would have to take on the responsibilities of ... billing and customer service." Also, Apple's iPod business model conflicts the the current system of virtually giving away hardware and charging for services. Disney's own cell phone service failed when Disney's customers were luke warm to the services offered.

Apple is faced with a delicate balancing act. Apple's investors and analysts are uncertain about Apple's business model and the direction of the technology. There are many opportunities to go wrong. How Apple wades through all these perils has everybody watching.


Recent TMO Headlines - Updated March 29th

Wed, 11:47 AM
Weak Report Claims Touch ID Sensor Moving to the Back of iPhone 8
Wed, 10:47 AM
Apple Gives Developers First iOS 10.3.2 Beta
Wed, 9:00 AM
Private Internet Access VPN 2-Year Subscription: $59.95
Wed, 8:46 AM
iOS 10.3: Using "Find My AirPods"
Tue, 11:24 PM
Congress Says ISPs Can Sell Your Browser History on Party Line Vote
Tue, 7:09 PM
Apple Triples Supplier Sites Working In Energy Efficiency Program
Tue, 6:28 PM
You Can Opt Out of Sharing iCloud Analytics in macOS Sierra 10.12.4
Tue, 5:26 PM
macOS: Search Photos on macOS for Whatever You're Looking For
Tue, 4:18 PM
Developer Comments Go Live on App Store, Mac App Store
Tue, 3:07 PM
Samsung Plans to Refurbish and Sell the Recalled Note 7
Tue, 1:59 PM
Apple's New APFS File System, Developers Respond to App Store Reviews - TMO Daily Observations 2017-03-28
Tue, 11:01 AM
Element Blocks: The Coolest Periodic Table for Your Desk
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!