iPhone's a Pawn in Apple's March to Dominance

I, Cody Willard, on July 10, 2007, purchased the Apple (AAPL - commentary - Cramer's Take) iPhone. I was "late" in acquiring the phone (11 days is tardy now?) because I was home in New Mexico, 180 miles from the closest iPhone retailer. In fact, I may be the only person who didn't even see, smell or touch the iPhone before buying it; it's akin to reading Romeo and Juliet in high school and not knowing the ending beforehand.

I am still testing the device's functionality, but this thing is undeniably beautiful. Consider the timeframe of the iPhone's aesthetic "competitors"; Microsoft's (MSFT - commentary - Cramer's Take) Zune was released seven months ago and Research In Motion's (RIMM - commentary - Cramer's Take) 8800 is a little more than a year old.

When you consider that iPhone sales in less than two weeks are roughly equivalent to the total number of Zunes sold, it is clear that Apple has a hit. Pleasing early adopters is no easy task, but Apple has managed its end of the release well, including last-minute upgrades (glass screen, better battery life) and streamlining the checkout process at its stores.

Contrast that with AT&T's (T - commentary - Cramer's Take) response to the biggest consumer release ever. From reports of forcing customers to buy accessories to botched customer service, AT&T has borne most of the negative press surrounding the iPhone. The caveat most reviewers have about the device? AT&T's lack of reliable service.

Now the game of predicting Apple's next new product is on again, and we're sure to see a flurry of bad mockups coincide with what's supposedly insider information leaked on "reputable blogs." Instead of playing the guessing game, I am looking at Apple's history and fundamental vision for its future direction.

Apple is a more desirable partner than ever and it hasn't been afraid to seduce-and-run as needed. The rare misstep of the iTunes-tied Motorola (MOT - commentary - Cramer's Take) ROKR was a canard at the expense of the cell-phone manufacturer. Apple didn't brand the device as its own, instead treating it like an illegitimate child and eventually ending iTunes support.

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At the time of publication, the firm in which Willard is a partner was net long Apple, Google and Microsoft, although positions can change at any time and without notice.

Cody Willard is the manager of CL Willard Capital Management, LLC. He is a regular guest on Fox News, CNBC and other networks, and he writes a monthly column for the Financial Times. He is also an adjunct professor at Seton Hall University and the author of TheCodyReport.net, a monthly stock market newsletter. Willard appreciates your feedback -- click here to send him an email.