One of the hotter news items this week was Apple’s introduction of a cell phone. The debates about it make me recall an anecdote when somebody meet the CEO of Rolex, and asked him, “ Did you hear about this latest technology on the timepiece market?”

The Rolex CEO was purportedly heard to say, “ Oh, I don’t quite know.”

The person then proceeded to say how come the CEO would not know. But he defined the wrong industry. Rolex, according to analyst, is not on the timepiece market, but rather on the luxury brand market. Much of the value of owning a Rolex watch is not about owning the latest technology , pinpoint accuracy or watch features. Buying a Rolex watch rather is about resale value, jewelry investment, lifestyles, as well as how it makes the owner feels when people swoon over his watch. It is as much as branding and image. It is the same thing to say that Louie Vitton or Hermes is not just about bags.

Over the last few years, Apple had taken this route. Apple products is really not

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