I disagree with Entner's analysis. The iPhone does not suit every wireless consumer's needs, and not every wireless consumer is with AT&T or wants to be with AT&T. Not every wireless consumer likes the iPhone. Honestly it's just another device with rather generic features and consisting of limitations. Many consumers will still find greater value in other devices still. Let's not get this whole Jesus phone thing blown out proportion.
re: "…Honestly itâs just another device with rather generic features and consisting of limitations…"
I can agree that the iPhone isn't for everyone but you gotta be on crack to suggest that it is "just another device" Go ahead though, you guys at Verizon keep sticking your heads in the sand and telling yourself that.
Whether you like ATT or not. Or like the iPhone or not doesn't matter. The iPhone has a strong mind share position in the market. If you're in the market to get a mobile device the iPhone will be on the short list. It may not be what you buy but it will effect the evaluation process. All other things being equal would you choose a $99 or some thing that cost substantially more. Manufacturers will have to take this in to consideration and cut their margin or limit their market.
Blackberry is strong now but how long can they maintain that position? The larger consumer market will allow Apple to continually move the price down and the applications business wants will come from vendors wanting to capitalize on the greater market. Apple is eating the ground under the vendors. Before they know it they'll be niche players wondering where their market went.
Remember Apple came late to the MP3 market. Started out as the high end solution. Reviews complained that Apple was too costly. Just before a viable moderate priced competitor came out Apple releases a low end to under cut the moderate price. Poof goes the market.
The real cost is the data plan. $30 / month is still a big barrier for most people.
But if you are willing to pay that and you want a smart phone, if its a your decision, meaning your work does not require a blackberry or for you to use a carrier other than ATT, then yeah, you'd be silly to get anything but the iPhone. It's way better than anything else out there and it's your iPod too….
I wonder when the exclusivity deal finishes between Apple and AT&T, if Apple will be able to convince other Telecoms to subsidise the iPhone enough so they can keep the $99 pricepoint??
I mean Verizons "all you can eat" plans surely wouldn't be able to cover the cost of the phone and data consumption at their current price-points??
The iPhone won't kneecap the phone industry, just the smartphone industry. That's good enough because that's where the profit margins are. I would think that the new smartphone user (the average non-techie) would pick any iPhone over any OTHER touch-screen handset for ease of use and availability of tens of thousands of apps.
Agreed that data plans are too expensive for people that barely need a handset. I'm more concerned about AT&T running out of bandwidth than almost anything else. I just know people are going to be snatching up those 8GB iPhones like crazy just to say they got one. They'll know in about six months whether they can actually afford to be iPhone owners.
I disagree with Entner's analysis. The iPhone does not suit every wireless consumer's needs, and not every wireless consumer is with AT&T or wants to be with AT&T. Not every wireless consumer likes the iPhone. Honestly it's just another device with rather generic features and consisting of limitations. Many consumers will still find greater value in other devices still. Let's not get this whole Jesus phone thing blown out proportion.
kmc:
The market disagrees with you.
Hi Steve B., new username? Out trolling?
Have a nice day!
kmc is right. Not everyone needs an iPhone. Not everyone wants AT&T.
Most people can get by with a Jitterbug if all that is needed is a phone.
Blackberry will still hold Corporate I.T. that invested in BES. And Lotus Notes.
Anything else will be niche.
@ KMC
re: "…Honestly itâs just another device with rather generic features and consisting of limitations…"
I can agree that the iPhone isn't for everyone but you gotta be on crack to suggest that it is "just another device" Go ahead though, you guys at Verizon keep sticking your heads in the sand and telling yourself that.
Whether you like ATT or not. Or like the iPhone or not doesn't matter. The iPhone has a strong mind share position in the market. If you're in the market to get a mobile device the iPhone will be on the short list. It may not be what you buy but it will effect the evaluation process. All other things being equal would you choose a $99 or some thing that cost substantially more. Manufacturers will have to take this in to consideration and cut their margin or limit their market.
Blackberry is strong now but how long can they maintain that position? The larger consumer market will allow Apple to continually move the price down and the applications business wants will come from vendors wanting to capitalize on the greater market. Apple is eating the ground under the vendors. Before they know it they'll be niche players wondering where their market went.
Remember Apple came late to the MP3 market. Started out as the high end solution. Reviews complained that Apple was too costly. Just before a viable moderate priced competitor came out Apple releases a low end to under cut the moderate price. Poof goes the market.
The real cost is the data plan. $30 / month is still a big barrier for most people.
But if you are willing to pay that and you want a smart phone, if its a your decision, meaning your work does not require a blackberry or for you to use a carrier other than ATT, then yeah, you'd be silly to get anything but the iPhone. It's way better than anything else out there and it's your iPod too….
Apple is doing to the SmartPhone market like they did to the MP3 market. Soon 80% of SmartPhones will be an Apple device.
But as KMC said, not everyone wants of needs a pocket computer – some will be content with just a phone.
I wonder when the exclusivity deal finishes between Apple and AT&T, if Apple will be able to convince other Telecoms to subsidise the iPhone enough so they can keep the $99 pricepoint??
I mean Verizons "all you can eat" plans surely wouldn't be able to cover the cost of the phone and data consumption at their current price-points??
The iPhone won't kneecap the phone industry, just the smartphone industry. That's good enough because that's where the profit margins are. I would think that the new smartphone user (the average non-techie) would pick any iPhone over any OTHER touch-screen handset for ease of use and availability of tens of thousands of apps.
Agreed that data plans are too expensive for people that barely need a handset. I'm more concerned about AT&T running out of bandwidth than almost anything else. I just know people are going to be snatching up those 8GB iPhones like crazy just to say they got one. They'll know in about six months whether they can actually afford to be iPhone owners.