Apple’s Next Great Business Unit– Printing Money

On June 11, 2008


One of the questions that emerged from Monday’s WWDC keynote was, "How’d the do that?"

How did they up the specs on the new iPhone but drop the price down to $199 for the 8GB model and just $299 for the 16GB?

Moreover, how did they do that AND end their revenue sharing with AT&T?

Sure, they saved some money by dropping the metal  back in favor of a plastic one.

Sure, they saves some cash by not including a sync/charge cradle as they did in Gen. 1. (We all saw that coming didn’t we!)

But $199??? That is just amazing.

So how DID they do it? I had our suspicions but now I/we know…

According to investment bank Piper Jaffray Apple’s coming App Store could balloon into as much as a $1 billion market by next year.

That’s one followed by billion!!!!

While that number represents a “best case scenario” it does indicate one thing for certain- the application market that will arrive with the next generation iPhone software is a cash cow for Apple and will only grow as the number of iPhone’s and applications increase.

According to AppleInsider,

With the launch of the App Store in early July, Munster believes the iPhone and iPod touch are actually on their way to becoming "superior gaming/application" devices.

Or as Dimitri noted during the WWDC keynote,

Welcome to the best handheld computing platform ever!

This is something we here at knew would be the case. Heck, its why we started this site in the first-place.