iPhone Rumors All But Confirmed?
A Chinese language newspaper, The Commercial Times, is reporting that Hon Hai Precision Industry, aka Foxconn, the company that builds the iPod for Apple, has secured a contract to build 12 million "iPod handsets." Of course Hon Hai hasn't commented for the record on the report, and as usual Apple isn't saying anything, and wouldn't if you pilfered one from the factory and showed it to them.
Personally I'm so sick of the iPhone rumor, which goes back years, that I'm beyond the point of caring. Almost from the minute the iPod first saw the light of day 61 months ago, the rumors first about an iPod-PDA and then the iPhone have been incessant.
John Markoff of The New York Times did an extended story on the potential for the iPhone in August, 2002, and the rumor of the phones existence has run hot and cold ever since. Right now we're clearly in a "hot" phase of this rumor cycle, and based on all the available evidence, its pretty clear there's something to it. By this point, the impact of a Steve Jobs confirmation at Macworld in January will have about all the surprise of opening a birthday present you watched your Mom buy at the store. By now you'd think that the release of an iPhone would be so widely expected that it would fact would have been priced into the stock by now.
Not so, says Andy Neff of Bear Stearns. Assuming that the 12 million unit figure is correct, and assuming that the iPhone cannibalizes about 30% of the iPod market -- an estimate I think is large -- the device could add 70 cents per share in earnings to Apple's EPS and as much as $6 billion in sales in for fiscal 2007. When all is said and done, Apple could end up with 3% of the global market for wireless phones, just like that.
But this leaves me wondering if Steve will have any real surprises at Macworld. The iPhone? Expected. The larger-format screen video iPod? Expected. iTV? Already shown, and therefore expected. What's left for Steve to surprise us with this January?
To continue reading this article you must be a Bloomberg Professional Service Subscriber.
If you believe that you may have received this message in error please let us know.
- Comedian Byron Allen Buys the Weather Channel for $300 Million
- Stocks Tumble in Biggest Weekly Decline Since 2016: Markets Wrap
- Musk Takes Down the Tesla and SpaceX Facebook Pages
- World's Biggest Cryptocurrency Exchange Is Heading to Malta
- A Horror Week for the Dow Has Investors Begging for Trump Respite