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Apple Unveils Product Too Good To Be True

Anyone who regularly reads this blog knows me to be a big fan of Microsoft, but even I’m not stupid enough to say that Apple didn’t drop a bombshell today. At a MacWorld keynote lasting most of the last two hours, Steve Jobs unveiled the next big product for Apple: The iPhone. The iPhone features everything rumored about it and more:

  • 480×320 widescreen covering most of the face, 3.5-inches
  • Touch screen interface
  • full iPod features, with addition of many iTunes graphics-intensive features, like Coverflow
  • $500 with 4-gigabyte flash memory through Cingular, $600 with 8-gigs
  • Many PDA contact features, including free push email from Yahoo
  • Thin: 1.16 centimeters
  • Wifi

I’ll come right out and say it: Nearly everyone will want an iPhone. Without a doubt, Apple has thrown in so many features that the device is a great addition to any pocket. Still, there’s another thing I can say with little doubt:

At the current price, the iPhone will never sell.

The iPod sold, before the holiday season, 67 million units. Apple continues to release various versions of the iPod, cheaper and more accessible versions like the Nano, that have made it a breakout consumer electronics device. Apple’s goal is obvious: To get everyone to own an iPod. Not only is that not likely with the iPhone, it isnt even in the plans. From Engadget:

957m phones… 1% market share is 10 million phones. “Exactly what we’re trying to do, 1% market share in 2008, 10 million units and we’ll go from there.”

That’s what Steve Jobs said, that they’re goal is 1% market share, or ten million units, over the next two year. Even to do that, Apple would have to sell over 1 million units a quarter, something that took the iPod over two years to reach (and it took the cheaper iPod Mini to reach that level). Apple should have known from experience that products beyond certain price ranges are a hard sell, which is why the $200 Nano is their best seller, not any of the video iPods.

The price of the iPhone is going to work against it. It is such an ambitious product that Apple may have overshot itself here, releasing something that’ll take years of engineering refinement to get down to a level consumers will actually adopt. Million-unit sellers are hard, and $500 million unit sellers are damn near impossible. As good as the iPhone is, it can be easilly replaced with a free (with contract) Windows Mobile PDA phone and two MiniSD cards, for a total of about $80. While the iPhone is more elegant, has a better interface, is sexy and popularly branded, few people will pay $420 for elegance and UI.

In fact, I know people who pay a $400 premium for elegance and UI: They’re called Mac users. Actually, some Mac users pay that much for elegance and UI, others pay it for the graphics editing potential of the Mac, which leaves the market of people who would actually buy an iPhone at a percentage of those who would buy Macs. In their best quarters, Apple ships just over a million Macs, leaving them with not a lot of reason to think people are willing to pay that much extra for Mac over Windows.

That’s what it comes down to, again, after all this time: Regular phone buyers are Windows users, trying to get value for their buck, not caring about looks or that their UI is behind Apple, while Apple phone buyers are Apple computer users, paying a premium for looks, slick UI, and the name on the back of the phone. History has proven that while some people will pay extra for various reasons, most people will not. What is the most popular phone on the market? The RAZR, which is free with a new contract.

I want an iPhone, and I want it bad. But I don’t have the money for it, and neither do you.

Apple is going to steal market share from other companies. It is going to steal a lot of consumer smart phone buyers, but not business users (who buy PDAs based on the email server their company uses). It will steal the early adopter phone market, a good segment that pays a premium for phones and makes companies like Nokia and Motorola a lot of money. But they will not sell 10 million iPhones by the end of next year, not at $500.

There are also two other problems: The first is the classic Mac affinity for choice, or lack thereof. Once again, Apple screws you by forcing you to use Cingular. Now, everyone has a preference of cell phone provider, but does Apple know that there are people in New York who refuse to use a phone not sold by Verizon? That’s right, Verizon has such a reputation in New York that many people use them exclusively, paying as much as $40 more per month than they would with competing premium and family plans. Apple leaves users with Cingular or forget it, and a lot of people are going to do just that.

There’s one more thing I don’t like: Why is it just a phone? Couldn’t Apple have release a touch-screen iPod? Ipod owners cannot be happy that there is no upgrade to the traditional iPod that uses the same form factor as the iPhone, minus the cellular radio. With a claim of 16 hours of battery life, the iPhone is the best iPod to date, but you can’t buy it, even without a contract!

The reason is probably a simple one: Without the contract, the iPhone would cost about $200 more, or $700-800. No one would buy an iPod at that price, even a crazy person, and removing the radio wouldn’t knock it down enough. 4-8 gigs for $600, $700, or $800 is too much for even the biggest iPod fan.

I’m hoping the iPhone gets a revision after a year or two, something that slashes the cost (for gods sake! No more features!) and extends its capabilities to the regular iPods. The price of the iPhone gives you an idea how much a touchscreen iPod would cost, and the picture isn’t pretty, but costs do come down.

What does this mean for Microsoft? Well, in terms of market share, probably nothing. Windows Mobile is still going to overtake much of its competitors in the next few years, as long as partners keep pumping out cheap (and sometimes free) devices, and Apple will hurt Microsoft’s competitors in the premium space more than it hurts Microsoft. However, Apple has set a new standard for UI on a mobile device, and Microsoft has no choice but to follow suit. I’d give Microsoft three years to release a UI that can stand up to the iPhone, or it is going to have some problems.

Otherwise, wait for iPhone V2. Version 1 will probably have a few bugs (like a scratchy screen), making the wait worth it for many reasons.

January 9th, 2007 Posted by Nathan Weinberg | General, Apple, Windows Mobile | 15 comments
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15 Comments »

  1. […] Apple introduced the iPhone today (you can read more about that at Apple Watch, and get my very long op-ed on it at InsideMicrosoft), and joining Steve Jobs onstage for about a minute was none other than Google CEO and Apple board member, Eric Schmidt. Schmidt was there to announce that Google Maps and Google search would be built into the iPhone. Photos from Engadget, as well as these quotes: […]

    Pingback by » Google CEO Eric Schmidt On Stage With iPhone » InsideGoogle » part of the Blog News Channel | 1/9/2007

  2. […] (More on the Apple iPhone: PaidContent, Read/WriteWeb, Techdirt, IP Democracy, kottke.org, Publishing 2.0, Telegraph Blogs, Gizmodo, Dana Gardner’s BriefingsDirect, Business Filter, InsideMicrosoft, Joystiq, Pocket PC Thoughts, Monkey Bites, Mark Evans, The Tech Report, Between the Lines, Digital Life, Zatz Not Funny!, Engadget HD, Paul Kedrosky’s …, TechBlog, InsideGoogle, PalmAddicts, hypebot, biskero.org, Paul Colligan’s …, Seeking Alpha, Peer Pressure, Ogle Earth, Blogging Stocks, Rex Hammock’s weblog, Jarrett House North, Ken McGuire On The Web, Tech Trader Daily, Brandon Live!, brainwagon, Download Squad, Boing Boing, Lost Remote, Greg Galitzine’s VoIP …, Innovation in College Media, All About Symbian, Ryan Stewart, I4U News, Thoughts on VoIP, technology, Ben Metcalfe Blog and DealBook) […]

    Pingback by The Blogging Times » Apple and Rimm - New competitors… maybe - Laptop WAR now heavily tilted to Apple | 1/9/2007

  3. Open it to any other than Cincular, add Exchange email, and here’s my credit card.

    Comment by TD | 1/9/2007

  4. Sorry to hear you cant afford one.

    I have my credit card, but then again I’m a Mac user. I just like things that work.

    Comment by T. Johnson | 1/9/2007

  5. Well I could afford it, but I can’t afford it versus its value to me.

    And if you like things that just work, you’re better off with a regular cellphone glued to an iPod Nano. Works just as good, maybe even better!

    Comment by Nathan Weinberg | 1/9/2007

  6. I have to admit, the iPhone does give me tingles, though I’ll take your advice and wait for the second version. The price is steep, but no steeper than some Nokia phones (N90) I’ve been considering. I guess Apple should or could be hoping for the support of the Asian market, where phones with this price are bought every few months in a manic mass-market technology addiction. I hope that it does well, but some part of me is also hoping that the first gen has a legion of problems so that I can buy stock.

    Comment by Raven Hanson | 1/10/2007

  7. […] Here are some the items mentioned: - 1/2 of Mac’s sold are first time Mac Owners - 2 Billions song sold on iTunes - Selling 5 million songs a day, 58 song a second - #4 Music Reseller - Sold 50M TV shows, Disney key partner - Sold 1.3M Movies, new partner Paramount, 250 Movies offered now - Zune 2%, iPod 62% Market Share - Launched iTV, 40GB HD, 50 hours of video - iPhone - no buttons, go directly to any voice mail instead of listening in order, over 200 patents. Google and Yahoo! presented their applications that run on the iPhone. AAPL is targeting 10M Units in 2008 which is ~$5 Billion in revenue. There has been a ton of coverage on this announcement. You can read more at the following blogs. John Markoff / New York Times: New Mobile Phone Signals Apple’s Ambition Richard MacManus / Read/WriteWeb: Exploring Apple TV and iPhone Rafat Ali / PaidContent: Apple Launches TV Extender; WideScreen iPod; Apple iPhone With Cingular Gizmodo: AppleTV: The New iTV Mark Evans: I Wanna an iPhone Mathew Ingram / mathewingram.com/work: Okay, I want one — are you happy now? Carlo Longino / MobHappy: Finally, the iPhone — Well, it’s finally here: Steve Jobs … Max Chafkin / Inc.com: iPhone Envy — The world’s gadget manufactures are in Las Vegas … Julie Ask: Apple iPhone … what they didn’t say about the services Dana Gardner / Dana Gardner’s BriefingsDirect: I am oh so ready to dump Verizon Wireless and Sprint PCS for iPhone … Carlo / Techdirt: Move On, Rumormongers: The iPhone Is Finally Real Kyle Orland / Joystiq: Why we can’t wait for iPhone gaming Scott Karp / Publishing 2.0: Apple’s iPhone And The Head Rush Of REAL Innovation Dan Farber / Between the Lines: Photo Gallery: Steve Jobs keynote-the iPhone lives Michael Calore / Monkey Bites: Macworld: iPhone Reinvents the Mobile Web Cedric / Peer Pressure: I Scream For iMac — I was a complete Mac virgin until … Sam Mcloughln / PalmAddicts: Apple introduce Apple TV and the promised MobilePhone. Sarah Gilbert / Blogging Stocks: Engadget live from Steve Jobs Macworld Keynote: iPhone is reality Janak Parekh / Pocket PC Thoughts: Apple’s iPhone: Return of the Touch Screen? Michael Gartenberg: Macworld - Apple Says It’s Time to Phone Home David Card: Apple’s iPhone - The UI Is What Moves Me Chris Richardson / WebProBlog: iPhones, Sports and Social Media Shane Richmond / Telegraph Blogs: Steve Jobs unveils Apple’s iPhone Leisa Reichelt / disambiguity: iPhone - now *this* is a revolutionary interface Scott / TechLifeBlogged: iPhone Revealed Paul Stamatiou: My Thoughts on Today’s Stevenote Nathan Weinberg / InsideMicrosoft: Apple Unveils Product Too Good To Be True Andrew Parker / The Gong Show: Is iPhone Open? Rex Hammock / Rex Hammock’s weblog: Macworld 2007 keynote speech Paul Colligan / Paul Colligan’s Profitable Podcasting: His Steveness Speaks At The Macworld Keynote Baris / From Istanbul To Sand Hill Road: Apple iPhone is Here. Watch out Palm & Blackberry Seeking Alpha: Apple Unveils The iPhone Froosh / HipMojo.com: Apple’s iPhone: Game On Ogle Earth: Apple iPhone does Google Maps. Could Google Earth follow? biskero.org: Apple iPhone: PMP + Phone Rob Evans / Digital Life: iPhone does look cool Woodrow / The Ponderings of Woodrow: Apple takes a bite out of the convergent device market…the iPhone looks phenomenal Ken McGuire / Ken McGuire On The Web: Live Blogging The MacWorld Conference Google Blogoscoped: Steve Jobs Unveils iPhone Xeni Jardin / Boing Boing: Macworld keynote: iPhone, Apple TV Mobility Site: Steve Jobs announces the iPhone Eliotvb / Listening Post: Apple Scores Beatles for iTunes Store Garr / Presentation Zen: Odds and ends to kickoff the year Podcasting News: Apple Intros iPhone iPod Phone Drew B / LEWIS 360°: The year of mobile presence Cory Bergman / Lost Remote: Apple debuts iPhone with wide video screen Mac —Tim Jarrett / Jarrett House North: iPhone: Holy crap John K / Got Ads?: iPhone accelerates Mobile Trend #1 […]

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  8. Ah, the old Mac-Win feud! ;)

    Comment by Markus | 1/10/2007

  9. Nathan, you seem incapable of listening to detail or taking on board the basics. I’m arrogant enough to say that my reply here is well worth reading, if for only two reasons: I’m right and I like extracting the michael out of Windoze bloggers. Go get a coffee and prepare to smile:-)

    You begin:

    “Anyone who regularly reads this blog knows me to be a big fan of Microsoft, but even I’m not stupid enough to say that Apple didn’t drop a bombshell today.”

    “…Nearly everyone will want an iPhone… Apple has thrown in so many features that the device is a great addition to any pocket.”

    The only three comments I fully agree with. Then you go off the rails big style:

    “At the current price, the iPhone will never sell.”

    Bollox. I don’t know how else to react. Is this wishful thinking? Spite? Stupidity? All three probably. Do you enjoy eating your own words?

    Then you go into an argument about numbers. Forget it. If Steve Jobs has stood up in front of THAT audience… at THIS juncture in Apple’s history and in the light of his own current legal situation, you can bet your ass his forecasting will be sound and they’ll make their sales targets and even exceed them.

    Then you want us to believe you’re an economics major and a marketing expert all rolled ito one:

    “Apple should have known from experience that products beyond certain price ranges are a hard sell, which is why the $200 Nano is their best seller, not any of the video iPods.”

    Wrong. Hand me a baseball bat. When people buy products [especially from Apple, but not exclusively of course] they don’t just buy a product, they buy a solution. Apple just happen to do solutions better than the rest. He hasn’t grasped this yet.

    “The price of the iPhone is going to work against it. It is such an ambitious product that Apple may have overshot itself here, releasing something that’ll take years of engineering refinement to get down to a level consumers will actually adopt. Million-unit sellers are hard, and $500 million unit sellers are damn near impossible.”

    Wrong again on a colossal scale, but only time will prove this. But a share price rise of 5% on the news of a product with 17 or so lawsuits hanging over Apple and the possibility that the CEO may face criminal investigations… is a significant indicator in my ever-so-humble opinion. Then here you take a leap of fancy so wild it’s laughable:

    “As good as the iPhone is, it can be easilly replaced with a free (with contract) Windows Mobile PDA phone and two MiniSD cards, for a total of about $80. While the iPhone is more elegant, has a better interface, is sexy and popularly branded, few people will pay $420 for elegance and UI.”

    No, you weren’t paying attention were you? Sure the price will drop, but the idea that significant enough numbers to matter of the iPhone target audience is going to choose anything from M$, given the host of features offered by the iPhone is laughable. M$ have managed to grab just 2% of the MP3 market with the Zune in their launch month. A new product launch from the world’s biggest company should have made a serious dint in anyone’s share, given the push M$ put behind it. 2% reflects the fact that MS got it wrong big style. I wonder where that figure will be come June!

    The reality is that many people will buy an iPhone just to have the iPod features, for them the phone will be a bonus. Phone buyers will buy the coolest phone on the planet and get an iPod with all those features free!

    As the one who predicted many of the features in the new iPhone, but really wanted it to be a PDA from the outset, I should be disappointed. But I’m not. I don’t need an iPhone. But I never bought an iPod. So now I can join either queue and I’m satisfied… twice over. That’s like going into the sweet shop, paying for one favourite ice cream and getting two.

    More sneering Nathan wisdom:

    “In fact, I know people who pay a $400 premium for elegance and UI: They’re called Mac users.”

    Yes, Nathan me boy, they’re the fastest growing sector in a generally contracting computer market, in which the former top player [Dell] is one of the big loosers. And 50% of these new Apple users were Windo$e users… until they switched!

    Remember dear reader, it was Michael Dell who in 1997 advised Steve Jobs [as he returned to Apple] to give back the company shares to the shareholders and close Apple down! Steve Jobs’ bumper sticker reads: ‘Suck my tailpipe Mikie.’

    There’s more:

    “Regular phone buyers are Windows users, trying to get value for their buck, not caring about looks or that their UI is behind Apple, while Apple phone buyers are Apple computer users, paying a premium for looks, slick UI, and the name on the back of the phone. History has proven that while some people will pay extra for various reasons, most people will not. What is the most popular phone on the market? The RAZR, which is free with a new contract.”

    Before the iPod, hardly anyone bought MP3 players. Then Apple grabbed 80% of the market and kept it. Now, for the same price as the first iPod, you can get an iPhone that does all that other stuff too. Does he need a map?

    “I want an iPhone, and I want it bad. But I don’t have the money for it, and neither do you.”

    Firstly, I hope they refuse to sell you an iPhone. Secondly I’ll make damn certain I can afford one. No, reader. Don’t feel sorry for him. He’s a fool.

    Well, okay, you may have a point when you say:

    “Apple is going to steal market share from other companies. It is going to steal a lot of consumer smart phone buyers, but not business users (who buy PDAs based on the email server their company uses).”

    I’m hoping there will be an iPhone Pro, which is of course a PDA with something like 16/32GB of Flash memory [already available in replacement laptop HDDs] and what will by then be a full suite of Word compatible iWork apps on board. That really will be a killer product. I’ll have one of those too.

    And before you poo poo this one, ask yourself why it’s running OS X. I remember posting about two years ago that I wanted an Apple PDA/Phone/MP3 with a cut-down Mac OS. Someone asked what I meant by a cut-down Mac OS. Now you know.

    Then our Nathan says:

    “There are also two other problems:”

    No. If you’re honest with yourself boy you’ve got a lot more than just two!

    “… The first is the classic Mac affinity for choice, or lack thereof. Once again, Apple screws you by forcing you to use Cingular….”

    I’m bored with this. Apple make good strategic partnerships and, when they get them right, stick with them. I just hope they choose Orange in Europe.

    Then you wine:

    “Why is it just a phone?”

    This from a fan of the company that just launched the Zune! A copycat product so crippled by limitations, poorly thought out features and marred by turd-like ugliness it will die an early neglected death at the hands of the very market you Nathan are convinced won’t buy the iPhone. How does Gordon Ramsey phrase it? F*** Me!

    Then you muse:

    “What does this mean for Microsoft? Well, in terms of market share, probably nothing. Windows Mobile is still going to overtake much of its competitors in the next few years, as long as partners keep pumping out cheap (and sometimes free) devices, and Apple will hurt Microsoft’s competitors in the premium space more than it hurts Microsoft.”

    I wouldn’t count on that. The iPod was a marketing tool designed to carry the Apple brand to the world and it’s done that in a market of just 132M worldwide product sales, and make Apple cool. And unlike a free tee shirt, customers paid a premium. And it’s succeeded in spades.

    Now Apple plan to use a phone device to do the same in a market with one billion annual worldwide sales! Anyone [other than the deluded followers of Gatesean mythology] prepared to bet against it?

    “However, Apple has set a new standard for UI on a mobile device,”

    Doh!

    “…and Microsoft has no choice but to follow suit. I’d give Microsoft three years to release a UI that can stand up to the iPhone, or it is going to have some problems.”

    As Steve Jobs once said… Imagine the possibilities! First of all it will take that long to come close to the UI of iPhone. Secondly, Steve emphasised the 200+ patents filed and fact that they will protect them. All M$ know how to do is imitate, and imitate badly.

    We’ve seen some significant days for Apple and some good days for being a part of it all. This has to have been right up there. We may not have been in Steve’s garage as he and Woz assembled the first Apple Is, but we are witnessing history today.

    G

    Comment by Graham Ellison | 1/10/2007

  10. Graham - Based purely on the length of your comment, you clearly put a lot of time into it. Next time, might I suggest that if you want to put forward a powerful arguement, avoid things like “M$” and “Windo$e”, both of which are childlike message board terms and hurt anything intelligent you have to say.

    Otherwise, nowhere in your long comment do you suggest how Apple is going to get a $500 phone to be a top seller, or even a market-breaker. Take a look at Wikipedia, and compare their chart of iPod sales versus the releases of iPod models, and you’ll see that the original iPod never sold enough units to justify Jobs’ 10-million unit prediction. The original iPod was cheaper than the iPhone and had more storage space, but it was only until the $200 Mini came out that Apple began selling over 1 million units a quarter, and you’ll see that the $200 device has consistently been Apple’s top seller.

    In spite of how much people will want this phone, they will stay home with a $500 price tag. People do not pay a premium on cell phones, with rare exception, and it’s why the Treo has had such a difficult time over the years despite an initially energetic fanbase.

    I say the iPhone, at $500, will not sell 10 million units by the end of 2008. It’s a prediction, and one that can’t be confused in any way. I challenge you to show me a consumer product sold at such a large premium over the rest of the market, that can sell ten million units in 18 months after release. Such a thing is not possible.

    You keep stating that Apple will make their sales forecasts, but give no reason to believe so. I understand you believe in Apple, but you need reasoning to back up your statements, and you have none. I have the entire consumer electronics market backing up everything I’ve said, including the history of the iPod itself.

    Oh, and you argue that the Zune is a failure at 2%, but weren’t you listening: Steve Jobs only wants 1%! Does that make him twice a failure?

    Oh, and Windows Mobile already has a large percentage of the market, and is projected to be the smartphone market leader by 2010. Don’t count on the iPhone putting a dent in that any time soon. In fact, I suspect this will be just like the PC market, with Microsoft’s phones owning an overwhelming margin over Apple’s. Microsoft’s phones are cheaper, run a software library that has been building for a decade, and work with every single phone network. Apple’s phone works with one company and costs more than any popular phone on the market.

    I wish them luck.

    Comment by Nathan Weinberg | 1/10/2007

  11. According to CoComment, someone wrote:

    Nope, I’m pretty sure they’re going to reach their target in 2 years. Make sure you save this page as a souvenir ;)

    I hate it when Akismet loses comments.

    Comment by Nathan Weinberg | 1/10/2007

  12. iPhone comes to market as a premium product - THE must have of 2007. Of course it will sell at $499. But as I said, the price will drop, not in response to poor figures but as a result of take-up which will increase Apple’s purchasing power and improved market exposure.

    I also said, Apple is using iPod and iPhone as marketing tools to perform this very task. Who else is saying that? Check it out. Less savvy businesses have either given away pens at shows or even sold products at a loss in an attempt to gain market share in a sector. Can you think of one? I can.

    Oh, and I use terms like ‘Micro$oft’ etc as entirely appropriate terms of derision befitting a leviathan that has opperated in a virtual monopoly for 20 years, provided a sub-standard products that costs its customers money in lost productivity, leave them vulnerable to attack from thieves and viruses and held back personal computing in the process.

    M$ have virtually never innovated but have majored in copying Apple and playing catch-up. GUI, Mouse, USB, FireWire, CD/DVD, even the internet!! It was of course the great Bill Gates who tried to convince us that the internet wouldn’t last and everyone would be using something he dreamed up!! PCs still come with floppy drives for godssake! What planet did you say you were from?

    But anyone can make money selling crap in a virtual monopoly. That Apple has survived at all is nothing short of remarkable, and a credit to what you dismiss as side issues. The fact is that an intuitive user interface is not a luxury, it’s an obvious, easily achievable consequence of smart thinking. It may hurt to be tied to a company [and its products] that lacks this ability, but you don’t have to be.

    The most interesting news out of Steve’s Keynote was the fact that 50% of new Mac buyers across the USA are former Windows users - switchers. Why? You want me to back up my predictions? Just think about that for a minute. The person who uses history t predict the future is like a sighted man in a dense forest - where the blind man is king.

    Imagine what this is going to do to their market share in terms of the hardware and of course OS.

    If we were starting again today, say a new business, who, with all the information available to them, would buy a PC running Windows? If you say you would, I’d have to laugh.

    Comment by Graham Ellison | 1/10/2007

  13. Which of the published features makes this special? Dell and HP have had higher rez PDA’s for a long time. IPod features? Media Players on a phone are nothing new. Push email wi-fi. Nothing new. Crummy Cingular service? I’ll pass. PDA featuress? Ever heard of Win Mobile. Do you have to tether it to a PC and ITunes to get funcionality like you do with the IPod? Will it be a 600$ phone that needs a 2000$ laptop to make it work.

    But I’ll bet it will be sexy!

    Comment by Terrance Dwyer | 1/10/2007

  14. I think that the iphone will sell because anything under $1000 which you can buy outright which has all the features one would need is a bargain. Nowadays you have to pay for phone plans etc which in the end equal $2500-$3000 over 24 months. I own three ipods (as i have upgraded them over the years) and they are a fantastic product and I will definately buy the iphone. I think most people will simply because the features on the iphone are not available with other products and business wise you only need one computer program to run the device.

    Comment by Alana | 1/10/2007

  15. Well, technically the iPhone doesn’t have all the features anyone would need. I’m sure every user could find something they want that the iPhone won’d have (for me it’s third-party applications, for others it’s corporate email). That’s not fair, though, because every phone has disadvantages. The real issue I have is with what you said here:

    because the features on the iphone are not available with other products

    If you look, there are no revolutionary features on the iPhone. Every feature they have is available, for the most part on Windows Mobile and Palm OS. The only big difference is design. The phone looks better, and the operating system looks better, and is seemingly easier to use. That’s not a feature, just Jon Ive at work. Don’t fall into Steve Jobs’ trap of convincing you they just invented the PDA phone, and it never existed before. This is the best phone I’ve seen, but it doesn’t have any new features.

    Comment by Nathan Weinberg | 1/11/2007

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