gmtPLUS09 | live from Seoul

Finally the iPhone is here. After a year of speculation, its official: a sleek and slim, 3.5" touchscreen device.

A device with a wide range of implications. Just as the original iPod changed the way we listen to music, the iPhone will strive to change how we communicate.It’ll be setting off a huge battle: Apple vs. everyone else. (Interesting to note, the company is officially known as Apple, Inc., sans "Computer")

The price point is a bit risky. Even with a 2-year contract with Cingular Wireless, the iPhone  ($499 for 4GB/$599 for 8GB) won’t be cheap and the mainstream market won’t be the first to buy. The Mac faithful will be part of the early-adopter. (Cingular is clearly the big winner here in the operation services…it was the first to bring the Razr and now its the first to sell the iPhone.)

In hindsight its not the first time that Apple charged a premium for a commodity. The iPod is a highly glamourized hard-drive. With Apple’s design and name value, it can obviously command a premium and consumers will be buying. Speaking of buying, Apple is in talks of buying the already taken "iPhone" moniker owned by Cisco Systems.   

Initially the iPhone is targeted to those willing to fork out the high price point. The device is foremost a consumer electronics that takes on the corporate-oriented features that RIM/MotoQ/Treo offers.

It is unknown how Apple will enter the wireless market which has very different markets dynamics to its consumer electronics domain. Where Apple connects directly with its customers through its stores and its own web site, access to wireless customers is controlled by the wireless carriers.

Another issue is how Apple can be successful in this wireless game. Apple currently relies on hardware sales with its iPod, and computers. This will be difficult to replicate where carriers typically lure customers with discounted handsets via 2-year service contracts.

On the device end, there is already heavy competition with many sub-$100 handsets offering music-playing capabilities. The iTunes connectivity is a sure distinctive benefit that extends the iTunes experience to the iPhone. This is what Sony Ericsson is banking on with its Connect music store.   

It is presumable and clear Apple will experience similar fronts Sony-Ericsson has seen in positioning its products, lets just hope Apple will do it with more flair and personality.

This entry was posted on Wednesday, January 10th, 2007 at 1:53 pm and is filed under Innovation, Gadgets, Mobile. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.