Dvorak on the iPhone: no likelihood that Apple can be successful
In a scathing critique of Apple's forthcoming iPhone, legendary analyst John Dvorak gives his opinion on Apple's chances of success with its new mobile phone market - and it ain't pretty!
Citing the ferocious competitiveness of the mobile phone market, the razor thin margins, and the fact that Apple's previous successes have been in emerging or moribund markets, Dvorak claims that "there is no likelihood that Apple can be successful in a business this competitive." Ouch!
Dvorak makes some interesting observations regarding the mobile phone business. Ferociously competitive, phones that go in and out of fashion within three months, and the need for vast advertising budgets that sink any competitor without seriously deep pockets.
He concludes with a seriously downbeat analysis that should have the fan-boys weeping:
"What Apple risks here is its reputation as a hot company that can do no wrong. If it's smart it will call the iPhone a "reference design" and pass it to some suckers to build with someone else's marketing budget. Then it can wash its hands of any marketplace failures. It should do that immediately before it's too late. Samsung might be a candidate. Otherwise I'd advise you to cover your eyes. You're not going to like what you'll see."
If you can bear the pain, check out Dvorak's complete analysis over at MarketWatch.
[Source: MarketWatch]
