The iPod Observer - Now Playing - Analyst: 'iPhone' Will Be a 'Category Killer'

Another analyst is trying to push their view that Apple should get into the cell phone market. Kirk Yang from Citigroup Asia explains his point by saying that in Asia cell phones are status symbols and people are willing to pay large amounts of money for them. So combining a high quality MP3 player with good design would allow Apple to sell a cell phone for $500-$600 dollars. It doesn't seem like the cell phone industry would really improve Apples margins (50% in the case of Macs), so it doesn't make financial sense for them to get into the business.