Apple Inc (AAPL)

[Heywood40]

KC,

I "administer" 4 cellphones for the family. In this small market, there are currently no smartphones or high end phones. We get by with the RAZRs provided by T-Mobile without charge.

Our high-end mobile phone ownership is zero %.

Enter the iPhone. What the......!!?? On the day of the keynote I got three calls. Suddenly this small market sample of 4 phone users had been independently and simultaneously transported into the portion of the demographic that desires high-end mobile phones.

Apple is going to create its own market for phones in the same way it did with MP3 players.

The 5% of people using high end phones does not have to give up even one of those phones for Apple to reach its goal. Apple just has to sell the sixth phone to new customers in the expanding demographic.