10-25-08

The Iphone Could Be Your Next Computer

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Apple has successfully accomplished what every other computer company has been trying to do for years. They’ve successfully entered the mobile and consumer electronics market.

If you’ve been following CNET, you’ll see why the iPhone is important to Apple right now:

Apple revealed the numbers it uses internally to measure the performance of the iPhone business for the first time on Tuesday. Imagine Apple treated the iPhone like it did the Mac: it would have recorded an additional $3.8 billion in revenue and an additional $1.3 billion in net income during the company’s fourth fiscal quarter.

Total iPhone revenue of $4.6 billion would have represented 39 percent of Apple’s overall adjusted revenue of $11.7 billion, and would have ranked it third among all mobile phone vendors as measured by revenue after just 15 months on the market, according to the company. “If this isn’t stunning, I don’t know what is,” Jobs said.

40% of Revenue! Wow! We’ve seen other PC companies, like HP and DELL, try this before. But they have not achieved eye-popping revenue numbers from those products.

Apple even beat the blackberry this quarter:

“Apple beat RIM [Research in Motion]. RIM sold 6.1 million BlackBerries, Apple had 6.9 million iPhones in the current quarter. This is a milestone for us. RIM is a good company that sells a good product, so it is surprising to us that after 15 months in the market, we could outsell them.”

Amazing numbers that may be the reason why Google released the Android (its operating system for cell phones) was released as open source.

Despite whacking the profits of it’s partner AT&T, the revenue generated by the iPhone, a 15-month old product, is still stunning. Globe Philippines may just be in the right track. Putting in a very, very pricey product would be just to cover the initial growth expenses.

With these numbers from Apple, it seems the iPhone has garnered mainstream acceptance. However the iPhone still suffers from several usability issues:

No Cut and Paste - You’ll find you can’t copy and paste text on the iPhone. It can be quite annoying when you try to email something and use another document as reference.

Difficult to type in text - if you’ve used it, you’ll miss the tactile feel of buttons. You can type SMS messages with one hand in a cheap Nokia phone. The iPhone needs both your hands.

When Apples solves these problems. The iPhone will truly be the pc-killer device.

I recently bought an iPod Touch (which is almost an iPhone, but without the telephone features). I’m honestly loving it. I can check email, twit, plurk, facebook wirelessly. I watch movies and listen to music. I now use this over my big, clunky laptop when I’m at home. It’s my second “personal computer” despite the usability issues.

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