Apple may eventually end up selling 20 million iPhones worldwide every year. It will be faced with the unpleasant reality that now bedevils firms like Motorola and Nokia. Sales volume is not any good as a substitute for a high yield on each product. Low margins have never been part of the Apple formula for success.
Apple is actually getting as much or more for 2nd generation iPhones as first generation iPhones.They switched their deals with AT&T and International cell carriers from taking a cut of the monthly service fees, to an up-front subsidy. It is projected that Apple would get $400 in revenue over the course of two years from each iPhone customer - now that projection is $440 all at once.
It's stupid comments like this that investors key into without any further research that affects Apple's stock price and perception greatly. I wouldn't be surprised if there's a shakedown in online media soon that reveals that bloggers like McIntyre are paid shills for Apple's competition. This isn't the first time he's made such poor analysis of Apple's business model.