Archive for July 2007

Yoshiko’s photos

Here are Yoshiko’s photos of her recent trip to Portland.

iPhone: Risk and Return

Apple and AT&T stocks appear to be doing well as a result of the iPhone launch. However, superior returns are always accompanied by greater risk. However, Steve Jobs has a knack for understanding risks and making wise decisions that maximize return while minimizing risks. Napoleon Boneparte was exceptional in this regard–he was not afraid of turning away from battles he possibly would not win.

In Apple’s case, the screen technology is new and untested. They could incur significant replacement and repair costs if there are unforeseen problems. Additionally, given the hype, the size of the product launch was larger than anything Apple had done before. There were logistical issues building and distributing a significant number of units in a short period of time. Additionally, there was a requirement to train both Apple and AT&T staff on the product prior to launch–with limited availability of product for training purposes.

All this required significant investments by Apple and AT&T that could have been wasted had the product had the product flopped. AT&T stores sold out and Apple stores seem to be selling well. There were activation problems with some units, but customers seemed to be tolerant of the glitches.

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