Optical/IP Networks

iPhone iMpact

12:30 PM -- The launch of the Apple Inc. (Nasdaq: AAPL) iPhone into three Euro territories in the build-up to Christmas might, on the face of it, look like bad news for other device manufacturers. (See Jobs Leads iPhone Into UK, iPhone Goes to Germany, and iPhone, Oh La La.)

But some of Apple's rivals may benefit, according to CCS Insight analyst Ben Wood. And music is the key, he reckons.

Here's what Wood wrote (try saying that after five double vodkas) in a research note issued after this week's news announcements:

    The launch of the iPhone has dramatically raised awareness of advanced capabilities on mobile phones – in particular music. Nokia Corp. (NYSE: NOK) and Sony Ericsson Mobile Communications are best positioned to benefit from this as they have the most comprehensive music portfolios. High capacity (high margin) flagship devices such as the N95 8Gb and the W960i are ideally placed to be cross sold against the iPhone. Manufacturers that don’t have mature music portfolios such as Motorola Inc. (NYSE: MOT) and LG Electronics Inc. (London: LGLD; Korea: 6657.KS) may have missed an opportunity.
— Ray Le Maistre, International News Editor, Light Reading

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