The KSeeker

In Search of Knowledge…

Of Iphones and Expectations..

Posted by Girish Krishnan on May 17, 2007

Iphones are releasing in US in June and the hype around it is already sky high. The listings in ebay range in bids from $615 to $1025 and come from eBay sellers with solid reputations! But will Iphones become as successful and trend setting as the Ipod?

One of my friends shared his thoughts on the Iphone and this post is mainly courtesy him – thx Suds 🙂

For me there are reasons to believe otherwise…
– Iphone has a incredibly cool multi-touch screen which can be considered a ground breaking innovation  (There is a guy at NYU named Jeff Han who gave the demo of a multi-touch screen at the TED (Technology Entertainment Design) conference last year. Check out the videos.. they are AWESOME!!!
http://www.youtube.com/watch?v=EiS-W9aeG0s
http://www.ted.com/index.php/talks/view/id/65  )

But is the touch screen features enough for people to make that purchase decision? I dont think so..

– Do you know which cell phone company enjoys the largest market share in the US? – One would naturally expect Nokia but its actually Motorola. Do you know why? – Apparently, the US consumers prefer the clamshell (foldable) model as opposed to the candy bar model (Nokias). Thats why Razr is such a big craze in the US. Even before Razr there was a good clamshell model from Motorola which was available only in the US. So the real question is will the US consumers actually go for a candy bar model (iPhone) for a cell phone? The early adopters will beg/borrow/steal to get their hands on it but will iPhone cross the chasm? ;)).

– GSM is more prevalent in Europe and India so when Apple launches the phone in these markets they would launch a GSM variant. But how big are the “hi-value” target segments in these countries who would switch from their existing nokias and motorolas to iphone?

– Unlike the Ipods – which re-created demand for a portable music player – here there is a switching cost involved as most people already use phones. Because of this I suspect Iphones to remain a niche product like the Macs – Else If it is imitated and the price comes down badly, the adoption rate might just go up. Whichever way, i doubt if it is going to help Apple gain a substantial market share in the mobile phone market.

– So why would someone want the Iphone for? – i think it would be more for getting a “coolth” than really for the features especially when you have to do so at the cost of your old phone and ipod..

those were my thoughts … Lets wait and watch…

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2 Responses to “Of Iphones and Expectations..”

  1. a said

    no dude…beg to differ. lets take ur points…

    1. absolutely right. the clampshell sells more in the US. but then who ever said that the base of the iphone was the US. it might remain cult there…but globally nokia sells 78% of its phones outside the US. nothing will be different for iphone. plus…the iphone is a smartphone. and very few of them are clampshell. so for tht target audience…it will work jst as it used ot

    2. people in the emerging markets r dying to get hold of new stuff. hv u chcked out the sales of nokia n95..? its crazy…! i cud never imagine people in india shelling out 32K for a video camera tht also works as a phone. but apprently they do. this also takes care of your switching cost argument. as long as u can sell your current phone…the switching cost will always be low (not the case for CDMA though). the biggest switching cost in the industry lies with the service provider because of the phone number.

    i rest my case. suds and giks….fight it out babes..!!

    ~a

  2. Find Any Phone Number with Name and Address Worldwide!

    Find Any Phone Number with Name and Address Worldwide!

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