http://www.appleinsider.com/articles/07 ... eport.html
So you know its not just me talking out my rear, from Credit Suisse:
[quote="In defending his thesis, Semple cited a "precedent" or trend in the market where consumers continue to show a willingness to "trade up" to premium products, such as the Apple iPod, Nike Under Armour, Coach handbags and Tiffany jewelry. "At Coach, the mix of $400+ handbags has increased 100 basis points as a percentage of total sales," he explained. "And at jeweler Tiffany, 'statement' jewelry has seen average selling prices increase from $81,000 to $91,000 over the past year while less-than $500 silver products have decreased as a percent of total."
Fueling the trend, according to the analyst, is the rise in discretionary wealth, the introduction of an influential female consumer, changing family structures, and evolving consumer behavior, along with encouragement from media influences to acknowledge and respond to personal needs.
"Why will consumers Trade Up to the iPhone?," asked Semple. "The real value and differentiation in the iPhone lies not its sleek design (this is certainly helpful though), but rather, the innovative qualities and resulting capabilities delivered by the Mac OS X, which remains the best operating system in the PC world today in our opinion, and an OS that easily exceeds the capabilities of the scaled down OS’s that dominate the mobile phone market today."
While the Apple device was conceived to act as a phone, web browser and iPod, its potential to excel in other areas of digital media may also exist. The Credit Suisse analyst said it's products of the iPhone's nature that typically develop popular utilities unforeseen by the product designers. "With the host of capabilities that the iPhone enables, users will inevitably find their own uses for the product," he wrote. "For example, with a 2 mega-pixel camera and an OS designed to handle photo management (iPhoto), we believe the Apple will be able to deliver in one product what camera phones have been trying to accomplish for several years, immediate and quality photo sharing."[/quote]
Pretty extensive analysis.
-Big E
Stable genius.