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Apple Solid to the Core

Posted Mar 07, 2008 01:09pm EST by Aaron Task in Investing, Electronics, Software and Services, Information Technology

Stepping back from the market's short-term volatility, Apple's "software roadmap" event Thursday spoke volumes about the company's very bullish long-term outlook.

First, Apple's liscensing of Microsoft's ActiveSync technology is a big step in the iPhone's war with Research In Motion for corporate customers.

Second, the $100 million iFund from Kleiner Perkins to be used for future iPhone software development is a huge vote of confidence in the iPhone.

Third, and arguably most important, Silicon Valley legend John Doerr saying the iPhone could be bigger than the PC is an incredible statement about the product's potential.

Again, short-term trading is a crapshoot, but Apple shares seem to have a found a floor around $120 and the long-term view looks very good.

48 Comments

nor cal
nor cal - Friday March 07, 2008 02:55PM EST

No, actually it didnt! It was below 100. Check the charts! Jan. 07

Yahoo! Finance User
Yahoo! Finance User - Friday March 07, 2008 02:56PM EST

Actually it was never at $100 until last April, 3 months after the iPhone was announced.

- Friday March 07, 2008 03:04PM EST

dekaruben bad move you could have held on to it until they are at $300 in 6 months it's rode not road

nor cal
nor cal - Friday March 07, 2008 03:05PM EST

Exactly!

Yahoo! Finance User
Yahoo! Finance User - Friday March 07, 2008 03:12PM EST

You all have very poor grammar and spelling. It really diminishes your credibility, regardless of the subject.

nor cal
nor cal - Friday March 07, 2008 03:14PM EST

Is that the only leg you have left to stand on? pathetic!

albert
albert - Friday March 07, 2008 04:48PM EST

i'm staying with aapl the most innovative company ever.

dkrieb
dkrieb - Friday March 07, 2008 05:09PM EST

Have any of you watched the presentation? John Doerr is right - the iPhone will be bigger than the PC. I bought some more stock today. AAPL will back on its way back to $200 after next quarter. Don't listen to the short sellers.

Bob
Bob - Friday March 07, 2008 05:26PM EST

Do not sell Apple or the I-Phone short. The original I-Phone has some problems no doubt, but going on the 3G network and adding Microsoft's Active Sync Technology to the phone will make it very competitive in the near future with Blackberry and other phones and allow it to be considered seriously for corporate applications. And it is still the coolest phone out there! former VP and Director at Citigroup

JoelG
JoelG - Friday March 07, 2008 05:52PM EST

So it is hard to argue with the fact that Apple makes products with the most intuitive human interfaces. Most of their prodcuts exude a feeling of hardware and software quality that is simply unmatched. We pay more for their products because of the artistry and the fit to our lifestyles. If you want some rickety plastic laptop, music player, or phone, get them from Korea. If you want a solid piece of hardware that feels like it was organically machined from some sort of metallic space alloy, get an Apple product. They give us something more to talk about than the specificaitons, they are just fun to hold. The economics will play out, just like always, but the company, their strategy, and their products are the real deal.

jeffery
jeffery - Friday March 07, 2008 05:53PM EST

it seems to me the business press has uniformly missed the BIG message conveyed at apple's sdk conference. yes, there will be great opportunity in the business sector for the iphone. but... perhaps the biggest opportunity lies ahead in the GAMES MARKET. watch out nintendo. watch out sony. did no one notice that 2 of the world's biggest games developers showed great apps for the iphone ?!?! how much would it take to adapt the iphone into an amazing portable gaming device + iphone + ipod? rimm has a subscriber base of ca 12m and iphone will surpass that this year (see jigs). so the business market is in fact relatively small. the far bigger growth market for the iphone is in gaming. last year there were probably 100m plus mobile gaming devices sold. nintendo ds and sony psp alone accounting for maybe 80m unit sales per year. and apps for the iphone are being written as we speak. the developers from EA and SEGA loved the iphone as a gaming console and... it wasn't even designed to be one. it seems to me everyone reporting on the iphone has missed the real giveaway made at apple's sdk conference. the iphone is a great phone, it will be a great business tool, but it will become an amazing gaming device.

kon
kon - Saturday March 08, 2008 05:01AM EST

Michael W It is the report you were referring to http://www.appleinsider.com/articles/07/07/24/analyst_claims_iphone_demand_slowing_but_3g_model_in_cards.html posted in 24. July 2007. Today is March 2008. BTW find something more up to date.

Yahoo! Finance User
Yahoo! Finance User - Saturday March 08, 2008 07:14AM EST

michael writes "The Iphone is loosing its traction to other better models" You must have got your edumacation in the US as your speling stucks. It is spelled LOSING not LOOSING, you plucking LOOSER!

AnInfiniteDream
AnInfiniteDream - Saturday March 08, 2008 10:37AM EST

I'm a hugh buyer of Apple right now. Did you see those iphone games on the webcast of the SDK event? $120 is support so buy now because eventually this stock is gonna take off again. Mark my words, we'll be at or above $200 by the end of this year.

Christian
Christian - Saturday March 08, 2008 11:18AM EST

Last year, RIM had 40 percent market share in smart phones, and Apple had zero. Today, RIM has 40 percent market share, and Apple has about 30. So that's not bad for a start. But now the problem for RIMM: Two days ago, RIMM had push email that can take an email from a Microsoft Exchange server, sends it to a RIMM server, which sends it to your Blackberry. Apple had _nothing_. Not good. What has changed? Today, Apple has software that lets your Microsoft Exchange server push the email _directly_ to the iPhone. So your company doesn't have to pay for an extra server. The don't have to pay license fees to RIMM. All the have to do is buying iPhones. This is changing the game completely. It's turned upside down. And now a problem for everyone else: The biggest thing for the large corporations is self-developed or off-the-shelf software adapted to their business that can run on the phone. Do you know what Apple has now? First, they have the most powerful phone hardware anyway. Dual core processor, half a gig of RAM, OpenGL in hardware. On top of that a full one hundred percent Posix compatible operating system. On top of that full MacOS X compatibility (the iPhone runs MacOS X!) The most powerful development system available anywhere. I don't meant the most powerful development system for phones, but the most powerful system. And a distribution system, that lets an enterprise install software on all their employees' iPhones by pressing a button. This is huge. All the other smartphone makers don't know yet what is hitting them.

rem_the_gem
rem_the_gem - Saturday March 08, 2008 12:13PM EST

They better get the 3G phone out soon. They haven't made a sale to me because thats what I am waiting for a 3G iPhone.

Andrei
Andrei - Saturday March 08, 2008 04:02PM EST

The iPhone will affect the computing industry in a fundamental way. The reason that the umpc market did not take off was because of the wrong human interfaces that microsoft, palm, etc thought were apropiate. In fact the umpc market was unintentionally stalled by the wrong interface. Apple stumbled upon something extraordinary, there are very few things that Apple can do to screw this thing up.

gregory f
gregory f - Saturday March 08, 2008 10:21PM EST

mihael w comments are uninformed and stupid. I can not believe he has he gall toput something tis amaturish in print.

Arthur
Arthur - Sunday March 09, 2008 09:47AM EDT

Every time someone asks to see my Iphone they go out and buy one the next day. Even my wife, who just learned how to use a push button phone had to have one. Now I have to limit her internet usage or I will go broke...

Einsteinario
Einsteinario - Sunday March 09, 2008 02:13PM EDT

Michael W--you are a complete idiot--if you are an econ major why are you quoting a story that's only data for falling iphone sales is a supposed 10 day window (retail sales can never give a clear indication within 10 days) and seems to be based on a brief view of a couple stores. There is no hard backup in the story of how he came to find that people are coming into the store and have no interest in the iphone. I could walk into a best buy right now and create a story of how the Verizon Voyager or MS Zune is flying off the shelves.... if I stay there long enough and see two people in a row buy it. You're no econ major...you wouldn't know a derivative from a derelict. Stick to english...you seem like you'd be better at it.

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