Nice read. Thanks.

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"Our stores were conceived and built for this moment in time - to roll out iPhone," says Jobs

That to me is going to be key to Apple's sucess with the iPhone; one of the things all the nay-sayers fail to understand.

What Apple critics don't get is the lust factor. I have purchased several Apple products soley because I touched them. When they were announced I thought, "I don't need that", but when I held it in my hand or typed on it's keyboard I had to have it. Apple stores provide a unique oppertunity to touch, feel, handle, and "experiance" Apple's products. The stores have a zen like synergy with the products displayed there.

The iPhone is going to be exactly the same way. So many people are thinking I don't need one of those, it's too big, or it's too expensive, but when curiosity gets the best of them and they wander into an Apple store, have to wait for the crowd to touch it, they will finally hold it in their hands and with a touch of their fingers be awestruck at the magic of it all.

I think the killer aspect of this device will be how it interacts with you -- physically, maybe even metaphysically. You will bond with it. All other phones are functional but boringly utilitarian, the iPhone however, will be wonderful, amazing, a magical experiance. This is the other thing critics don't understand, what Apple infuses into all their products, not just what it can do, but how it does it and how you make it do it -- it's the experiance.

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Once again a TUAW headline that doesn't accurately reflect the linked article. The article says Apple does more $/sq foot than a number of others, and implies it is tops -- "Apple is eating everyone's lunch," and it says Apple has been quickest to reach 1 billion $ in sales. These are both remarkable achievements, but don't say anything about profit, which is different from either per foot or gross company sales. The article says nothing about Apple's profit levels, either gross or net. Given the numbers I would hope they are high, but it flat out isn't mentioned -- so how can TUAW trumpet "Apple is America's most profitable retailer" in their headline? Sloppy blogging, once again.

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Apple is America's most profitable retailer. Here's why: EVERYTHING APPLE SELLS IS OVERPRICED AAAAGGGAGHTAHTUIHPCRHXBAIREOBIRPY.

(DISCLAIMER: I am an Apple fan, and do not use PCs. Don't go blaming me for "being a PC fanboy", because I'm not.)

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@Zachary

If Apple (and any other company for that matter), can get people to buy products which are completely overpriced, they must be doing something right. That goes for everything with high markups - alcohol, cars, clothes, etc.

Let's just hope Apple doesn't get comfortable at the top - because there's only one way to go.

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Object X, I couldn't agree more. There will be a contingent of Apple customers who will buy the iPhone sight unseen, of course. But, given Apple's foot traffic stats, Apple will sell millions of iPhones to people who never thought they wanted or needed an iPhone until they actually get one into their hands during a visit to an ARS.

Naturally, that's why the Apple Retail Stores are integral to the iPhone's success. It's not enough these days to rely on customer evangelists.

The other beautiful aspect of all this (to an Apple shareholder) is that the iPhone will only get better with each revision. Five years from now it will be hard to find someone who hasn't held an iPhone, just like it's hard to find someone who hasn't held an iPod.

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