Okay so those of you who follow technology news, probably would have already heard the big Apple announcement today: Apple’s iPhone. Just like other Apple products, iPhone looks great, and a lot of bloggers have already characterized it as a revolutionary product, ofcourse without even seeing or using it. I dont know if iPhone will be as big a success as iPod, but from what I do know, I can certainly list down few things which might be a hindrance to it becoming as great a success:
4GB model will cost $499 and 8 GB model, a whopping $599 with a 2 year Cingular Contract! Now theres no news as yet of it being available as a stand-alone product. But if (and when) it is, how much will it cost?? So Cingular’s latest phone, Blackjack costs 449.99, and a 2 year contract price is 199 (diff of approx $250) after mail in rebates (as per their website on 01/09/07). With that logic, 8GB model without Cingular contract should cost more than $850!! Well, now I’m really not sure how many people can afford such an expensive phone device. Hence, Apple might loose on the price front.
Dependence on Cingular
Since, this device will only be available with Cingular at launch, it certainly restricts shoppers. Only people who can buy it at $599 will be new cell phone buyers interested in Cingular service. For others who are T-Mobile, Verizon or other carrier patrons, or are generally tied up in a year or 2 years contracts, will not likely break their contracts and switch over to Cingular to get iPhone.
I am really very surprised by the 4GB and 8GB options. Apple today has iPODs with 30 GB and 80 GB options, providing only 4GB and 8GB for iPhone really fell too low! People who want to use iPhone as an mp3 and video player, will certainly be discouraged by this limit.
iPhone could have a negative influence on iPod market. If people start buying iPhone, they probably will not buy iPods. So, lets wait till June, when the first iPhone will be available to find out if iPhone will indeed be a threat to Nokia, RM and others.
Disclaimer: I am sure there are plenty of you out there who disagree.. but then hey! This is my space! 🙂