Tuesday, April 17, 2007

Apple Inc. delays Leopard for the iPhone

Investment banks support Apple Inc.'s (AAPL) decision to delay the debut of Leopard in light of the perceived future success of the iPhone! And why are they are not at all worried? As stated in one of my posts, the delay of the Leopard is earnings driven and could be viewed as a buying opportunity. The delay is indeed a temporary setback for AAPL but, admit it or not, it is a wait designed to ensure and promote long-time success for the company and its products.


Steve Jobs firmly believes the iPhone as the key factor to drive the next phase of the company's growth. The company has a major strategic advantage over other phone manufacturers, i.e., they have iTunes and the license agreements to sell digital music from the majority of the record labels. And you better believe that AAPL will capitalize on these! And being the key driver and all, another delay is the mobile phone's release would do a significant amount of damage to the credibility of both the firm and Jobs than a temporary setback in the debut of Leopard. Do remember that the iPhone was officially introduced way back January 2007, not counting the rumors and buzz on the blogosphere. However, its commercial debut was set for June 2007, which further prolonged the wait of fierce loyal Apple followers and the rest of the world.


And why half a year, you ask. Maybe, Jobs wanted to know how Microsoft Corp. will do with its Vista, particularly the acceptance of the OS with consumers. This is very important for Apple Inc. because its Leopard was also set to be introduced in the same year as Vista's. And with the Vista threat out of the picture, Jobs and company possibly can't do anything wrong with their decision to allocate additional resources for the iPhone, ensuring that all the perceived flaws and shortcomings of the device are well taken care of. All the hype that surrounded the iPhone and the long, long wait has favored Apple and its products well...people wouldn't mind a setback in the Leopard's release but they will with the iPhone! Definitely! Thus, with this strategy, the public will have their iPhone "on time" as Jobs successfully buys more time for his buddies at Apple Inc to iron out the bugs, kinks and stinks in Leopard, the OS that will bring in the money for the long haul.

And I am reiterating it again, Jobs has this gift of successfully timing his product launches in-tuned with the times. The success of the iPod has made Apple Inc believe that the sky is indeed the limit. And with a little luck and a very good marketing roadmap, the iPhone may open up another sky for AAPL.


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