Cisco: Why Apple's iPhone Is Good for Us

Apple's new iPhone spells good news for Cisco, according to CFO Frank Calderoni.
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SAN JOSE, California (

TheStreet

) --

Apple's

(AAPL) - Get Report

iPhone 4 could spell good news for

Cisco

(CSCO) - Get Report

, said CFO Frank Calderoni.

Unveiled in a blaze of publicity earlier this year, the iPhone 4 has been

touted as a big challenger to Cisco's Flip video camera.

In addition to HD video, the new iPhone offers a video chat capability and an

iMovie app

that lets people quickly edit video on their iPhones.

Bad news for Cisco? Not at all, according to Calderoni, who sees

big revenue opportunities for Cisco in the smartphone explosion.

"I would look at anything that continues to make video more pervasive as being a plus for Cisco," he told

TheStreet

during a recent interview. "When you look at some of the new devices that are out there, where video is even more prevalent, that plays extremely well

for Cisco as far as looking at the network and the power of the network."

Cisco provides much of the backbone needed to support increasingly complex smartphone services. During last week's conference call to discuss the fourth-quarter results, Cisco CEO John Chambers explained that the firm's service provider business grew in the 'mid teens' during the quarter.

With a strong presence in the telecom market, it's not surprising that video has become something of a Cisco mantra. Cisco CTO Padmasree Warrior, for example, recently explained that we are still in the early stages of a

video revolution.

Speaking at the CTIA conference earlier this year, Warrior predicted that most of the data

travelling over 4G networks will be video and multimedia.

Calderoni touched on this theme during his recent interview with

TheStreet

, explaining that the Flip video camera is part of a much broader effort to sell new services and networking gear.

"When you look at the Flick camera, it was not so much the device we were interested in, but the use of video," he said. "We have got aspirations for that business going forward."

Cisco, for example, has already discussed a

home entertainment revolution

which will see the words of TV and Internet collide.

Cisco is not the only tech heavyweight eagerly awaiting an Apple-related payday. Eric Schmidt, CEO of Internet giant

Google

(GOOG) - Get Report

, recently told journalists that

Google gets a good chunk of revenue when people search on the iPhone.

-- Reported by James Rogers in New York

Follow James Rogers on

Twitter.