Apple: In Tough times Still One Global Aspiration

These are tough times. The global economy has collapsed overnight.

Yet, as I travel the world, speak to folks and look at this mess, there is one thing that we all bear in common. Whether it is the lines around the Apple store at the Louvre or at Fifth Avenue, or in the malls of Moscow or Quito, Ecuador, everybody between the ages of 18 and 80 is trying to get their hands on an IPhone.

We don't want new cars, houses or anything else. All of the sudden, everybody wants to fulfill this global promise of wireless communication. For younger generations, its multimedia capabilities are the envie of everyone who doesn't have one. For older generations, it provides a sense of continuing to be on the cutting edge. For anyone who represents that they know anything about technology or telecom, there is nothing that gives more status or more of a sense that you are legitimate. In so many ways, it is the have all and be all. There simply is nobody who would turn down the chance to own one of these devices.

IPhone sales at 7 million globally actually struck me as low. The global demand is extraordinary, but the prices worldwide are not low - in many countries, it is about $400 to $500 a unit.

I just cannot see them growing exponentially and quickly from here. Carriers worldwide will actually be more likely to lower prices and subsidize the device in a declining economy.

And, these cycles actually seem to be very long. Nokia dominated the wireless phone cycle for 2 or three years in the early 2000s, then it was the Razr, then the Blackberry and now the IPhone.

Our global economy is dreadful. Everything is collapsing. I don't know if there is any company that can buck this trend, but if there is one I have no doubt it will be Apple.