Leapfrog

I laid awake last night thinking about the iPhone.
Seriously.
I had two ideas that were circling each other like black holes in a death spiral.
First, I think the people who buy the iPhone will also buy more suit jackets... It's just a little too big for the pants pocket, but it will fit nicely into a breast pocket.
Second, Steve mentioned that he wanted to "leapfrog" existing mobile devices with iPhone. But he's also leapfrogging out of the PC wars in a way, and putting a real Apple computer (essentially) in the hands of people who might not (or ever) own a regular computer. Teens who get an iPhone as their first phone are on road to consuming high-end Apple products like the MacBook for the rest of their lives. In mobile-mad countries like Brazil the iPhone will be a status symbol and an affordable handheld computer.
It's a brilliant tactical move that gives Apple a ton of leverage against its competitors and creates a virtuous cycle of phone and PC upgrades.
Jobs set a goal of 1% market share, or 10 million iPhones sold, by 2008. Apple shipped 20 million Macs between January 2001 and June 2006.
Based on those numbers I'd guess that around 2009 there will be more OS X installations worldwide on iPhones than on Macs. That's the game... leapfrog.

