Observations:
0. feature rationing in effect. Apple is also clearly demarcating the product as fitting in a continuum of usage behaviors. If there will be cannibalization, it will be affecting Mac, not iPhone.
1. it’s a new line in the income statement. Accessories and other revenues will add cream on top.
2. Guessing a $600 ASP (in line with iphone)
3. For margin I’d go with high 30s, maybe half way between Mac and iPhone.
4. units: 3 million this year, 100% growth for 3 years. Could range higher but distribution deals will tell story. So far this looks more like a Mac. However, will Operators run with it? If so, then we’re looking at much higher numbers.
5. Is Apple going to get revenue share on the data plan? I would not be surprised if they do get a cut.
6. iWork on it is a wild card. Does not fit use cases but they might be testing waters.
