Apple has Chutzpah?

Apple Inc., the official new title for the company formerly known as Apple Computers, is trying to beat Microsoft at its own game. No, I’m not talking about their OS-X software or a new line of office products. Nope, I am referring to the title of a most brazen, disregarding company. Apple is now so big they don’t have to worry about trifling items like trademarks or patent law.

Of course I am referring to the iPhone and the blatant trademark infringement upon Cisco. It is amazing to me that anticipated sales would be so large they assume they could handle such a clear-cut lawsuit from a player like Cisco. Hey, that takes some Chutzpah, Cojones, Bigones.

Yes, I think the iPhone looks cool. A full touch screen with an embedded Mac OS-X and the ability to make calls and the special feature called visual voice mail (really neat). Sounds great. However, they made a few assumptions that could cause a lot of problems for the electronics giant. First, they partnered with AT&T’s Cingular Wireless exclusively. While it was probably a good move not to sub-lease airtime, it may not be wise to become beholden to one service provider for the next 2 years. Secondly, Apple is coming to market with a $499-$599 price tag (depending on hard drive size). While the cellular market is huge, only 5% is spent on phones over $300. Mr. Jobs is quoted as saying they are targeting 1% of the market or 10 million phones through the end of 2008. That is a huge target when analyzing the type of consumers who purchase “high-end” smart phones are not traditionally swayed by Apple’s style-over-substance approach.

All of this risk and a legitimate claim against the title by Cisco could mean another phone disaster for Apple. Even if they do get some traction with the iPhone, they risk losing their marketing progress when the courts award the claim to Cisco. Cisco obtained the iPhone trademark in 2000 after acquiring Infogear. Linksys (a subsidiary of Cisco) launched plans for an iPhone of their own last summer. The idea differs from a cellphone (as is Apple’s iPhone), but rather a device to integrate home, mobile, and work phones as one.

Long and short, big risk for Apple, all to make waves at the CES tradeshow this week.