Apple and Cingular and General and SprintNextel and Verizon WirelessChris on 06 Feb 2007 01:12 pm
I want an IPhone. I want one bad. I know a bunch of other people that want IPhones. In fact, I usually get asked about Apple’s entry into wireless daily. Accordingly, I really think other manufacturers are doing themselves a disservice by discounting the IPhone (article here). I think it is just Apple Envy!
The article has comments from a few analysts and other handset manufacturers. Basically, they say that the “market is saturated” or “everybody has a cell phone already.” These analysts and manufacturers are missing it. Here’s a few things I think they are missing –
(1) People love their cell phones but they are not attached to them or necessarily their provider. Look at the success of the Motorola Razr. Folks saw a device they wanted and dumped their phone. It was the hottest phone in the market last year. Today, Sprint can’t give them away.
(2) “It doesn’t have disruptive features.” Did the Razr have disruptive features? Sexy handsets sell! Not to mention most consumers still are only starting to utilize the other functionality (wireless broadband) in the phone. Hopefully, the user-friendly nature of the IPhone will grow the use of other applications.
(3) “It’s not as easy as buying an IPod.” What so hard about buying a phone? I think Cingular absolutely will reap benefits (in terms of adding subs and growing data ARPU) from the partnership from Apple. I think Verizon Wireless will be fine because they have had tremendous success marketing the strength of their network. Service quality is still marketable and Verizon owns this niche.
My only complaint about the IPhone is I have to wait until June!