iPhone Battery Improved; Apple Stock Up

There were announcements this morning that Apple had addressed two issues with the iPhone – the non-user-replaceable battery had its battery life runtimes increased and the covering for the touchscreen has been changed from a plastic material to glass. Apple’s stock was up almost 4% on the day due to that news.

AAPL June 18 close

I don’t know about you, but I’m not sure an increase in battery life and a screen more resistant to scratching would make someone who wasn’t going to buy it now go out and spend $500 on an iPhone. I think pricing, usability and compatibility with existing email infrastructure will be much larger challenges for the iPhone to overcome. But the mere fact that Apple’s stock is reacting so violently to iPhone news indicates that this may be a make or break product, at least for Apple’s stock price in the short term. With the run-up in price over the past three months or so, iPhone better be good.


3 Replies to “iPhone Battery Improved; Apple Stock Up”

  1. I think it’s because people “in the know” expect us simpleton folks and other people who are less technologically inclined, to go “wow! better battery life AND it won’t scratch? maybe i should get one…” I mean, look at the price iPods used to cost. Not even just iPods but a $250 iPod mini with only 4 gig’s of ram? Apple has a proven track record of getting people to buy their products, no matter how overpriced they may appear to some. This “update” just goes to show you the power of the Apple brand and their name moniker. People see Apple releasing products, updating them to make them seem more desirable, and the stock goes up because people buy into it. The normal joe who buys an iPhone is going to be someone wanting it for bragging rights, to be part of the “cool crowd.” They’re not going to research into it, and start to pick apart it’s PUSH email functionality.

    Or of course, it could be because the iPhone was an incredible product when they announced it in January, and this update just adds fuel to an already super-nova temperature fire.

  2. I don’t think a normal joe has $500 to spend initially then an additional $60-80/month just to look ‘cool’. That’s no small chunk of change. Apple will have to produce cut down versions if they plan on capturing any significant portion of the market.

    Case in point, although the iPod Nano is still relatively expensive, compared to competitors, it wasn’t until it came out that iPod growth really rocketed. At this point, iPod video sales only make up something like 20-25% of sales, while the Nano makes up for more than half.

  3. I think the iPod growth rocketed not because of the nano, but because it became a hotter and hotter product to own. Before that, the mini was the best selling mp3 player in the world. While 500$ for a device, and then an extra 60 a month for service is a lot, remember, a lot of college kids are going to get it. 500 bucks? Who cares. Most of them will spend daddy’s money to get it. And most of them pay 60 a month for cell service anyway once extra’s like text messaging, voice mail and caller id are added in. Plus I’m sure a lot of childless 20-40 year old couples will get them since they have the largest disposable income of any target audience.

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