The iPhone is today where Windows was in 1990, in its infancy. MSFT rocketed throughout that decade as Windows became more and more powerful, popular, and affordable. A similar product cycle is likely for the iPhone. Of course, the iPhone faces alot more competition than Windows used to, but the big run already seen in Apple's stock price is just the beginning. Keep a long-term "buy & homework" outlook. Don't get shaken out by any turbulance on the way up and up. CAVIAT: The outlook changes if Google enters this space. Can you say gPhone?

GPS fans tell iPhone to get lost. Without a doubt, iPhone will soon have to include direct GPS capability, rather than simply relying on Google for indirect GPS access. Sirf has a wi-fi/GPS hybrid chip which appears to be the best prospect for filling this void.

The iPhone is only "relatively" smart, like Griswold's relatives in Christmas Vacation. It can't even take dictation. Captain Kirk never used a keypad! Keypads are tedious for even the fastest thumbs. King Midas says we need another option: Speech-to-text software, already used in desktops, must get fit into the iPhone. This would give iPhone a huge competitive edge over Blackberry. NUAN, a leader in speech-to-text technology, has excellent prospects to be included in iPhone3.0 or 4.0.

AT&T is the exclusive carrier for the iPhone in America. To hold on to that monopoly, they must replace their slow 2.5G EDGE network with a 3G network, which is already available in most major metropolitan areas. iPhone itself is already 3G capable. AT&T is working to expand their 3G network to reach more people in more places, including iPhoners. Other carriers (listed below) will provide the iPhone with 3G outside of America.

In case SIRF doesn't win the GPS prize from Apple, GRMN is another excellent prospect. Still, SIRF is the most likely winner.

Without 3G, the iPhone can satisfy Americans, but not Europeans. Rumor has it that T-Mobile (owned by DT) is the hottest contender to become the exclusive 3G provider for the iPhone in Europe. iPhones already contain a 3G SIMM chip, so this improvement could be imminent---first in Europe, then later in America. 3G is broadband for cell phones, about 3 times as fast as the 2.5G EDGE network. 3G phones can surf the 'net as fast as a big bulky desktop PC.

I haven't got the power, captain! As phones get smarter, they need more and more battery power. ENR, another leader in battery life, could be a solution to "Scotty's complaint".