Why Apple Could Play It Cool

by Brian Caulfield

The company is still on a roll and doesn't need to unveil a flashy new product at Monday's developers conference.

BURLINGAME, Calif. -- Some think Apple should build a television set. Others think Apple should consider a netbook computer. Maybe it will even build a gaming console. Apple doesn't talk about its future products. But at least one developer creating software for the company's iPhone thinks Apple may be in no rush to leap into new businesses.

And considering Apple's ( AAPL - news - people ) shares are up nearly 70% this year, Tapulous Chief Executive Bart Decrem has a point. His take: Expect Apple to double down on its hits, rather than spreading its bets around. Tapulous is the company behind "Tap Tap Revolution," one of the iPhone's most popular applications (see "Tapping Into iPhone Games").
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Apple has plenty to do with the iPhone right now. The Cupertino, Calif.-based company has been signing distribution deals for the iPhone at a frantic pace. And the company is working with more than 25,000 developers to manage the release of an ambitious new operating system and development platform for the phone. Apple may see no need to take on more right now. "Apple has been pretty conservative about how they build out a family of products," Decrem says.

Decrem has history on his side. After Apple introduced the original iPod in October 2001, it waited until January 2004 to add a second model to its lineup. By then, Apple was on its third iteration of the original iPod. Likewise, Apple may opt to introduce new models to its two-year-old iPhone line at a deliberate pace in an effort to grab as much of the smart phone market as it can, rather than chasing wild new opportunities. "My fundamental belief is that Apple will broaden its lead in the next few months," Decrem says. "They may grab a huge share of next-generation mobile."

Then there's the online rumor mill, for what that's worth. With just hours to go before Apple's Worldwide Developers Conference begins Monday in San Francisco, a number of blogs are claiming the iPhone will get an upgrade, not a makeover. Among the most talked about new features: a faster processor, more memory and new applications such as a compass and the ability to record video. Some blogs were even circulating photos of what could be Apple's next iPhone.

In fact, the biggest news Monday might not be a product at all. If Steve Jobs makes a cameo appearance--he's been on a medical leave since January--Apple can afford to play it cool, because the rest of us surely won't.

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