iPhone vs. the world

BusinessWeek.com has a really interesting article online today theorizing about the potential impact the iPhone 3G will have on other smartphone manufacturers and the wireless industry at large. The $200 introductory price point can lure lots of customers over to AT&T and put the price crunch on other smartphone manufacturers. Plus, now that the phone has been out for a year, consumers are more eager to upgrade. As the article points out, the trend of cell phone carriers subsidizing the price of handsets was on the wane, but now that the iPhone 3G is going to be released at a subsidized price, other manufacturers might want to follow suit, and that may mean cutting their prices on bulk orders.
Even before the 3G announcement last week, Apple has already forced the other mobile players to up their game. Not only are future phones adopting more iPhone-centric interfaces and features, wireless carriers who can't offer the iPhone to their customers are spending more to remind users of their offerings. According to the BusinessWeek article, Verizon's ad budget increased 30% in the first quarter of 2008.
While AT&T is surely going to continue to benefit from being the sole iPhone carrier in the United States, they also stand-out as being expensive. To help cover iPhone subsidies, AT&T is raising the data plan $10 a month. As BusinessWeek mentions, this could be an area that other carriers could seize on. By offering more features for less money, other carriers have an incentive that while not as flashy as the iPhone, might be more financially practical for lots of customers.
Still, as I said in last night's talkcast, I think the $200 price point is going to vastly reduce the barrier to entry for lots and lots of users. The data plan price increase is going to be more a determent for existing iPhone users, not new users to the fold. Just as the iPod really hit its stride when it became available for under $400, the $200 pricepoint on the iPhone is going to be extremely tempting for anyone approaching the end of a cellular contract. The other phone manufacturers SHOULD be concerned; the war for mobile domination will not be won or lost based on the iPhone 3G, but Apple is a very, very deft opponent.
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BusinessWeek.com has a really interesting article online today theorizing about the potential impact the iPhone 3G will have on other...
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The game changer is the OS and the Apps Store. Simply visiting TUAW and you can see some of the amazing stuff coming down the pike. There will be unique apps that none of the competitors can match up in quality and style. They will copy, but at best a shadow of the quality on the iPhone.
June 22 2008 at 7:34 PM Report abuse Permalink rate up rate down ReplyFor me it comes down to one thing: Which provider can offer me the lowest monthly price?
I'm not a constant talker. I don't need a zillion minutes. I don't even need unlimited data. For me, $70 a month is unreasonable and pretty much a waste, which means the iPhone is worthless to me.
I'll get an iPod touch again, some day, but not a 3G iPhone. Maybe I'll buy someone's 1st-gen unlocked iPhone, but the new one is not on my shopping list.
Crackberry doesn't impress me either. There's nothing on there I'd really care about.
Using Windows Mobile seems icky... But it might be my only choice if I want an affordable, low-cost smartphone.
I feel most disappointed with your article.
iPhone Vs. The World.
Let us first dissect the title.
There was some iPhone stuff in here, not a lot of versus and absolutely no World coverage.
Purely focused on the US market and not in comparison to anything whatsoever. With the US being only 1 of 70 countries getting the new iPhone it would perhaps have been more interesting to see how the iPhone affects those other markets.
While the iPhone may be $200 cheaper, the fact that the AT&T data plan is $10/month more expensive means that for the two-year contract, that's at least an additional $240. So thanks to the geniuses at AT&T, the new iPhone is actually more expensive than the one it's replacing--you're just not paying all of that extra expense upfront.
June 16 2008 at 3:05 PM Report abuse Permalink rate up rate down ReplyNo tethering no deal.
June 16 2008 at 2:55 PM Report abuse Permalink rate up rate down ReplyWell looking at the Verizon Wireless website, if they had the iPhone, they would be charging $40 per month for their data plan.
June 16 2008 at 2:54 PM Report abuse Permalink rate up rate down ReplyI have been a Windows Mobile user for many years and always tend to go back to WM when trying other phones. But the iPhone has so many advantages over WM its crazy, at this time I still choose the iPhone over any other pda/phone..
Wm is a great enterprise mobile os (for now), but the iPhone is easily changing the industry especially now with exchange support. Granted I despise AT&T for the lockdown and exclusivity, but the os is just so fluid and works so well that even the AT&T service can be overlooked because of that.
WM needs to step its game up drastically if they plan to stay in the mobile scene any longer. At this rate the only phone to stand up to the iPhone is the blackberry bold coming out next month which is a definite possibility I'll add to my collection along with the iPhone 3G ;).
All the back and forth on prices is getting kind of silly.
Remember this:
Society changed-We went from Cocaine to Rogaine and all Dollar$ & no ¢ense.
Either you buy and "eat it", or don't.
If you have kids and they get it--You'll eat it anyway, which probably means you're on the Rogaine program by now.
I am with tevetorbes. The 3G is nice, but not sure I want to pay the extra $10 a month for it. We have two iphones here, so that means an extra $20 a month. Most of the time when I use the phone for data I have access to wifi, so I have never been overly burdened by slow download speed. Where people are going to get upset is that the coverage area for 3G is quite low when you look at the map and when you get out of the area it reverts to the slower edge and you still pay the higher price.
I also like the look of the original better. I think it might prove to be a more durable product.
The only thing that makes me want to upgrade is the gps. At the end of the day, I may end up upgrading and take the hit on the higher data plan, but will do so only if I can get a good price for my existing phone. I guess the bottom line is I don't feel an OMG need to run out and upgrade.
If AT&T could pay off my other contract I would sign a three year deal with them! That's my only barrier to switching.
June 16 2008 at 2:27 PM Report abuse Permalink rate up rate down ReplyHot Apps on TUAW
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