I'll repost a couple things here that I've posted in other forums, blogs and stuff...
Apple iPhone Hits Handset Makers' Shares
Shares in mobile phone makers including Nokia, Samsung Electronics and LG Electronics slipped on Wednesday on worries about their ability to compete with Apple's new iPhone.
By Reuters
InformationWeek
Jan 10, 2007 08:00 AM
SEOUL/HELSINKI, Jan 10 - Shares in mobile phone makers including Nokia, Samsung Electronics and LG Electronics slipped on Wednesday on worries about their ability to compete with Apple Computer's new iPhone.
But handset component makers such as Taiwan's Catcher Technology, as well as some telecom operators such as Japan's Softbank Corp., gained on hopes the iPhone would replicate the runaway success of Apple's iPod.
Flash memory chip makers like Japan's Toshiba Corp. and South Korea's Hynix Semiconductor Inc.may end up benefiting should the iPhone capture the hearts of consumers when it goes on sale in the United States in June.
"For the handset makers, those who are seen to be competing handset makers look vulnerable. Most concerning would be the high-end guys," said Malcolm Wood, regional strategist for Morgan Stanley in Hong Kong. "But those companies in the supply chain for the iPhone will be protected."
Apple is introducing its mobile phone as global handset makers are already under intense pressure, with Motorola Inc.'s profit warning last week signalling a tough year ahead.
Shares in Nokia, the world's top handset maker, fell 2.2 percent to 14.63 euros at 0935 GMT, while Sweden's Ericsson was down 1.4 percent.
"It's a short-term sentiment impact. It's a much hyped story. Apple's a great marketing machine, but from the sheer volumes, it's not going to make a huge difference," said a trader in London.
Shares in chipmaker Infineon rose to a 2-1/2 year high but the company declined to comment on whether it would supply chips for the Apple phone. The stock pared gains to trade up 0.6 percent at 11.01 euros.
Infineon has said it has an unnamed new client for a high-end handset platform, and JPMorgan analyst Sandeep Deshpande said that if this was Apple it could generate $77-$87 million for Infineon this year.
An Apple spokesman in Germany said Intel would supply the central processing unit.
Germany's Balda said it would supply touch-screens for the Apple phone, sending its shares up more than 9 percent.
Shares of mobile phone makers in Asia fell, with LG Electronics Inc. dropping 2.7 percent, its biggest one-day fall since Oct. 18, compared with a 1.4 percent decline in the South Korean benchmark KOSPI.
Samsung Electronics Co. Ltd. fell 1.37 percent to 577,000 won, becoming the biggest weight on the index and marking its lowest close since June 23.
"The question is how competitive Apple's products will be. Its competitors will have six months to think what to do. I don't think Apple's phone will be launched in a vacuum," said Evli bank analyst Ilkka Rauvola in Helsinki.
BUZZ FACES REALITY
Apple's brand power and its prior success in marrying sleek design with functionality have bolstered optimism about the iPhone's prospects, boosting shares of its potential suppliers.
In Taiwan, Catcher Technology, a maker of casings for laptops and mobile phones, surged 5.22 percent, far outperforming a 1.17 percent fall in the main TAIEX share index .
Japanese retail investors, who make up the bulk of Softbank's shareholders, sent the mobile operator up 0.4 percent, against a 1.7 percent drop in the Nikkei, as they bet the company would be the most likely to release the iPhone in Japan.
Flash memory chip makers could also benefit, analysts said.
"This is very positive for the chip makers. The iPod has helped drive a good part of the sales of flash memory. If the iPhone also proves successful, it could drive up demand of the chips," said Chung Kyun-sik, chief investment officer of Yuris Asset Management in Seoul.
But some analysts also warned against over-reacting.
"Apple may be able to grab around 1 percent of the handset market share with this phone, but they face much more competition compared to the iPod market," said Credit Suisse analyst Kevin Chang in Taipei.
Apple Chief Executive Steve Jobs said he expected the company to sell 10 million iPhones by end-2008, a tiny fraction of the 1 billion handsets sold globally per year, analysts said. (Additional reporting by David Dolan in Tokyo, Sheena Lee in Taipei, Ian Chua in Hong Kong, Sophie Hares in London, Jens Hack in Munich, Georgina Prodhan and Catherine Hornby in Frankfurt)
By: Rafael Nam and Terhi Kinnunen
Copyright 2006 Reuters.
Times Online January 10, 2007
Row brews over Apple iPhone
Rhys Blakely in Las Vegas
The launch by Apple of a combined iPod and mobile phone device was mired in confusion today over whether the company has the right to use the iPhone name it has adopted.
The use of the name was brought into question after Steve Jobs, Apple's chief executive, launched the long-anticipated handset at the company's MacWorld event in San Francisco on Tuesday.
However, Cisco, the IT giant, owns the rights to "iPhone" and launched an internet telephone product under the brand three weeks ago through its Linksys division. Some commentators speculated that Apple would opt for the PodPhone name to avoid a conflict with Cisco.
Speaking to The Times on Monday at the Consumer Electronics Show in Las Vegas, Charlie Giancarlo, Cisco's head of development, who also runs Linksys, said that the group had rebuffed several approaches from Apple, which had offered to buy the rights to the iPhone name.
Mr Giancarlo said: "The iPhone mark has been ours since 1996. Apple did ask if they could buy it. We didn't want to part from it."
Cisco confirmed yesterday that Apple had repeatedly asked for permission over several years to use the iPhone trademark. It added that it had presented Apple lawyers with the final terms of an agreement the night before Mr Jobs's MacWorld presentation, but would not provide details of the proposed deal.
In a statement released on Tuesday, Cisco said: "It is our belief that with their announcement today, Apple intends to agree to the final documents and public statement that were distributed to them last night, and that addressed a few remaining items."
Phil Schiller, Apple's senior vice-president for worldwide marketing, would not comment on whether the company had agreed or would agree with Cisco on usage of the name.
"There are a number of companies that have used iPhone, but this is the first use in a cellular phone," he told AFX news agency. "We feel fine using it as a cellphone name."
An Apple spokesman in London was not available for comment this morning.
Separately, the company has renamed a device that streams digital content such as video and music from PCs to televisions. It had been developed under the codename iTV. The release version will be called AppleTV.
Apple iPhone Thoughts
By Richard Menta
1/10/07
As the rumors swelled over the past year over the introduction of an Apple iPod phone I commented that the best way for such a device to succeed was not for Apple to make a better music phone, but just to make a better phone. Now that the iPhone has finally been unveiled it looks like Apple did just that - and oh yeah, made sure the iPhone was also an impressive media player.
Shipping this June, Apple first dispensed with those annoying little buttons that are the bane of us big-thumbed users. The iPhone introduces the touch-screen interface to an iPod device with a patented technology called Multi-Touch. Sensors disable the touch-screen when it senses the users face come towards the speaker's mouth to avoid accidentally setting off the operative keys. The large display is sharp, with plenty of real estate to hold several clear navigation icons. Navigation looks impressive too, though we'll need to test them to confirm that.
Did I mention the iPhone was thin - razor thin. The height and width dimensions are broad though, so we'll have to wait an see what men think when they bend down or sit with an iPhone in their front pocket. Because the unit is so thin, the back pocket concerns me. Users might have to exercise a bit more care with the iPhone's soft plastic faceplate too, though hopefully a new plastic formula is used to reduce the scratching so problematic in earlier iPods.
As a personal media player the iPhone looks compelling. We discussed the odds of a widescreen iPod with touch-screen appearing, but had no idea they would roll it as part of the iPod's mobile phone concept. Part of what we felt was holding the widescreen iPod back was the need to entice more major studios to sell their films through iTunes. During Steve Jobs Keynote introducing the iPhone he announced that Paramount pictures would now supply feature films.
The iPhone is a powerful little device, powerful enough to run on OS X. It is also an expensive device. An iPhone with 4 gigabytes of storage will cost $499; with 8 gigabytes, the price is $599. Those who purchase a 2-year contact with Cingular, the only service you can use an iPhone on in the US, will let you have the iPhone for $299 with a 2-year contract, still a hefty price.
But Apple has been on target with pricing with its other portable products so it waits to be seen how well the iPhone sells. Jobs says Apple's goal by 2008 is to take 1% of the worldwide mobile phone market. If that sounds modest it is 1% a huge market, equal to 10 million phones. At $500-$600 per that 5-6 billion dollars of revenue. The European market which is standardized on GSM protocol should prove a vibrant market. Also, companies like Archos have successfully, though modestly, sold PMPs for $500. An Apple branded PMP that is primarily a mobile phone has a very reasonable shot of selling well. Wall Street certainly felt the device and price point were compelling as Apple's stock shot up.
And if the iPhone is a smash? The other big winner then is Cingular who has an exclusive on the device. If enough consumers switch carriers just to have access to the iPhone it will be interesting what the folks at Verizon and Sprint do, two carriers that are somewhat hostile to such an Apple product as it cuts out their competing music stores to iTunes.
...and here's a financial take on the news:
iPhone is No Blackberry Killer - Merrill
Posted on Jan 10th, 2007
Notable Calls submits: Merrill Lynch is defending Research in Motion after Apple launched its iPhone which combines cellphone and multimedia features in a touch screen only device causing RIMM's stock to go down hard in yesterday's trading.
In firm's view there are two distinct segments in the smartphone market: multimedia and messaging. The iPhone has a strong multimedia suite that will appeal to consumers, but they believe RIM's Blackberry smartphones with hardware keyboards have superior messaging (secure email) features targeted at 'prosumers' and enterprises. They are also uncertain of the iPhone's ability to sync with Window-based contacts/outlook that could limit its enterprise adoption.
iPhone's pricing of $499-599 is much higher than smartphones from RIM, Palm, Nokia, Motorola and Samsung that are available for $0-300 (after rebates). First-time smartphone buyers may be attracted to iPhone's "wow" factor, but up-front price could divert them to cheaper alternatives which come with built-in an expandable memory slot (2Gb for ~$70), a full keyboard, and higher-speed (3G) networks. Regardless, the iPhone expands the general interests in smartphones, and could help support healthy pricing in the smartphone market (i.e. the Starbucks effect.)
The sell off in RIM stock is overdone, in firm's view, and mostly reflects high expectations with the Pearl platform. However they think Pearl's momentum can continue and will further accelerate with the imminent launch of Indigo and Crimson (full keyboard siblings of the Pearl). Firm believes iPhone's multimedia feature set and consumer focus could have a bigger overlap with Palm.
Here are some NPR stories that feature the iPhone:
Apple Has Its 'i' on New Cell PhoneApple's CEO Shows Off Its Long-Awaited iPhoneThe iSsential Guide to the iPhoneFirsthand Account: Using the iPhoneWall Street Journal tech columnist Walt Mossberg Weighs In on Apple's New iPhoneHere's my own 2 cents:
I think it looks really cool, but then again you always must be wary of the giant Apple hype monster.
While it is certainly innovative right now, and will no doubt revolutionize cellphone/PDA devices, I have a feeling that its lack of Windows compatibility (it doesn't currently synch with Outlook or Exchange) is going to be a hindrance in the business market. I also wonder if it won't actually have a multitude of annoying little quirks like the iPod/iTunes does. Within a few years of the genesis of iPod, several companies introduced similar devices at much lower prices that are actually easier to use and more functional.
Another concern: will this thing will stand up to the wear-and-tear that a cellphone has to endure under normal situations. Most cellphones weigh very little and have cases mostly of durable, impact absorbing plastic. This thing looks to be a bit heavier than your average cellphone and it's made of metal and glass, not a very good combination from the standpoint of durability. Unless they've really built this iPhone well, some of its sweetest features could soon turn into major drawbacks during practical use. For instance, I imagine it's probably not a good idea to carry a device with a huge touchscreen like that in your pocket along with loose change and keys.
I was once standing on an el platform in the Chicago Loop and I saw a girl accidentally fling her Motorola RAZR into the air while whipping it out of her coat pocket. The phone flew about 5-10 feet, then plummeted down the 20-30 feet or so to the hard pavement below. She immediately started freaking out, while her gallant boyfriend ran down the stairs and retrieved the phone from the street below. When they examined it afterward, it was sporting a few minor scratches but still worked perfectly. I wonder how this iPhone would have fared under similar circumstances.
I'm going to wait a little while and let the general populace have a go at this thing before I go sinking $500-600 into an unproven technology.
But hey, that's just me.
