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Analyst comments on Apple’s possible cell phone strategy

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By LC Angell

Contributing Editor
Published: Tuesday, June 13, 2006
News Categories: Apple

American Technology Research analyst Shaw Wu has offered his thoughts on Apple’s long-rumored entry into the cell phone market. “While we firmly believe that Apple has been working on cell phone technology, we believe its much hyped imminent entry is overdone,” Wu wrote in a research note to clients today. “From our understanding, for Apple to enter the cell phone market in the USA, it needs approval from the FCC. We believe a filing would be required at least three months prior to an actual product launch.” Wu said, however, that Apple could protect the news from leaking by announcing its cell phone and then shipping three months later. “This could be similar to the Intel transition where actual product shipped seven months after the announcement,” he said.

The analyst also believes that any delay has to do with Apple taking time to figure out is its go-to-market strategy. “It could participate the traditional way by partnering with carriers like Cingular. However, we believe Apple is also exploring a vertically integrated model and user experience similar to both its iPod + iTunes and Mac businesses,” Wu said. “With an MVNO (mobile virtual network operator), Apple would have tighter control over the user experience. Moreover, we believe its 147 Apple stores would come in handy.” Wu said Apple could enter the cell phone market “as early as mid-2007, but more likely in 2008-2009.”

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Comments

1

apple will do anything for money

Posted by cono27r on June 13, 2006 at 10:17 AM (PDT)

2

because that’s what businesses do.

Posted by gerolamo on June 13, 2006 at 11:53 AM (PDT)

3

Apple is in business to make a living just like you and I!  So deal with it!

Posted by paj on June 14, 2006 at 11:33 AM (PDT)

4

I was very surprised to discover that Apple, a company that’s always been on the cutting of innovation and technology decided give Cingular exclusive rights to sell their phone. The benefits may be better for Cingular than for Apple’s sales. Initially, it may help increase Cingular members, but in the long run, it will only hurts Apple’s sales of the Iphone. I am a current member of Cingular but not for much longer. Their customer service is a nightmare and if happen to have a problem and need help after 8pm or on Sundays, you’re out of luck. So those with issues with their new Iphones are going to become very frustrated in a short period of time with the lack of support available through Cingular.

I think Apple would best benefit by allowing other carriers, at least T Mobile, who’s network is highly reliable, the opportunity to sell Iphones. At least this way, current and new clients have some CHOICE who they wish to have their service with which will be much more profitable now and in the long run for Apple.

Posted by Elizabeth on February 21, 2007 at 4:45 PM (PDT)

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