Enough already about 10M iPhone Target…
Posted on February 28, 2008
Every week we have to endure news stories about whether Apple will or will not make their 10M iPhone target this year.
The answer is simple. They will definitely make it. However that’s not really the question. The question how and at what margin? Carriers and consumers all want the iPhone so it’s not a question of demand. If Apple has to they will enhance the terms they offer carriers around the world to get the distribution they need.
Thanks to lower component costs and typical scale benefits Apple will also have price as a weapon later in the year as well, probably without hurting margins.
It’s fine to continue to track units, carrier plans, prices and margins but the focus on the 10M phone target is not the ball to keep an eye on.
Growth, market share, margins, product cycles, cash flow, returns on invested capital anyone?
– Kris Tuttle
(Research 2.0 has a long position in Apple shares.)
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