Stop Kidding Yourself: iPhone 5 is a Game Changer

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Stop Kidding Yourself: iPhone 5 is a Game Changer
By: Todd M. Schoenberger, @TMSchoenberger

The most anticipated event since, well, you fill in the blank; but the world is talking about September 12th as a day that will 1) transform lives, and 2) make most of us wonder why we didn’t buy that darn stock when it was just $2 a share.

If you follow, really, anything with news these days, you’ll know that Apple is set to unveil the details of the new iPhone 5. Oh yeah, this thing has it all: a bigger screen, longer battery life, better speakers and a super-duper fast internet. It will do everything you can ever hope for from a smartphone and, more importantly, be a game changer for Apple.

If you like to worship success and root for failure, Apple is your company. Many journalists and bloggers are slamming this company thinking iPhone 5 will bankrupt the organization, yet have to type away on their Macs, iPads and iPhones to tell us about it. Yeah, it’s getting that extreme. Henry Blodget from Business Insider is even saying Amazon is about to take over as king of high-tech, high-fun products.

Oh Hank, don’t you realize nobody sleeps out all night for a goofy Kindle; Apple is king and will always remain king. In other words, get used to it.

Hoping and wishing companies like Google, Amazon and Samsung push Apple out of the way is laughable. Making ridiculous comments like this is what I like to call ‘career suicide.’

Here’s why iPhone 5 pushes Apple to $1,000 a share by Easter (yeah, I said it, so cool your jets and send me some Cadbury eggs with your profits): Since the iPhone rolled out back in 2007, Apple has sold 243 million units worldwide. Guess what the projections are for the iPhone 5? 200 million, by the end of 2013.

For those with the iPhone 4s, you are not alone. Sales of the 4s clipped the combined sales of all of its predecessors. Yet, the “5” is expected to blow the roof off the house; and the revenue figures are expected to be out-of-control sensational.

Apple’s profit margin on the iPhone is 40 percent, and at a cost of $599 per unit, the company rakes in $240 per unit in pure profit. Let’s do the simple, eh em, arithmetic: 240 times 200 million equals $48 billion.

Yep, $48 billion in profit will hit Apple’s bottom line between the roll-out date (expected to be Friday, September 21st) and December 31st of next year. To compare, Apple will have $30 billion hit its bottom line this year from iPhone sales.

All the Apple-haters out there are talking about this thing called competition. Well, where I come from, the competition needs to start winning if you want to create a rivalry; and, from where I’m sitting, every other company out there has been a loser.

Everyone should expect the iPhone 5 to be its own category killer, so be prepared to be dazzled on Wednesday. I, for one, will be expecting greatness, which is exactly what Apple will deliver.