Apple's Dramatic Risks and Ambitions

4/24 - "When AT&T reported net adds of just 1.3 million, there were concerns about iPhone sales crossing the 1 million mark. However, unlocked iPhone sales seem to have bridged the gap..things are not so rosy in Europe. O2, the UK carrier, recently cut the iPhone price from £269 to £169 and T-Mobile had earlier in the month cut the price from €399 (£319) to €99. There are reports of Apple pushing for price cuts in France with the carrier Orange to increase sales. Apple will probably change its distribution model of exclusive carriers outside the US."

"Starting with just 4% market share when it was launched last year, Apple has now 9% of the smartphone market share against RIM’s 42% according to ChangeWave Research. And with the iPhone being made compatible for use in the enterprise, it would be interesting to watch its race with RIMM. For the moment, most of Apple’s market share wins are coming at the expense of Palm’s Treo and Motorola’s RAZR."

"Meanwhile reports of Apple’s $278 million acquisition of microprocessor design company PA Semi has overshadowed its earnings reports. PA Semi is known for its design of low-power chips...Apple has taken on a significant risk by vertically integrating into semiconductors with the hope that they can achieve differentiation in their core electronics, not only in design, OS and applications. If Apple’s move succeeds, then we’re going back to a vertically integrated computer industry, which is where it all started...We can always trust Steve Jobs to create drama. We can always trust Steve Jobs to be ambitious."