Apple will disrupt the phone business-again and again

Apple is a marketing strategy.

I have been into Sprint for several years. It has not been a good experience. So today I exited with out much fanfare. No one noticed except me and and perhaps now, you, my loyal blog readers. While Sprint languished with every weak pronouncement from Dan Hesse, Sprint's CEO, Apple charged up the value chain to reach a price of $485 today.

According to one report that I read, the annual sales of the iPhone are now greater than the total sales of Microsoft. Read that last sentence again and let it sink in.

Further, Apple now has approximately $100 billion in cash. The impact of the iPhone on the telecoms is staggering. At one time, I anticipated that Apple would just buy a phone company then I realized they own them all already. In the case of Sprint for example, if Sprint makes its goal of purchasing 30 million iPhones, Apple gets $18 Billion from Sprint. But that is only the tip of the iceberg. Apple gets the money, but it also gets another 30 million users of its products that purchase stuff from all the associated Apple sources like iTunes. Apple will eventually own its own airwaves and then the telecoms will be in the Smithsonian and in hundreds of case studies at the nation's business schools where students will be using Apple products to study its success amidst the demise of firms like Sprint. Kodak never saw it coming either.

Once Sprint becomes  dependent on the iPhone for its success, then Apple can go the next step and demand a share in the continuing revenue stream from iPhone contract sales. There is no way to stop it and investors are recognizing that fact, hence Apple shares reach new highs every day. Yes, and hindsight is perfect and humbling because I sold my Apple shares at $156.

No doubt, the federal government will soon start a formal investigation of Apple. They investigated Microsoft in the 90s. Why? Envy. Apple has more cash than congress.

Stay in touch and watch Apple.