“As if struggling cell phone-maker Motorola Inc. doesn’t have enough to worry about: Here comes the iPhone, heir to the mighty iPod, brainchild of tech golden boy Steve Jobs—and riding a tidal wave of hype to boot,” Mike Hughlett reports for The Chicago Tribune.
“‘Really, the iPhone benefits the entire industry,’ said Brian Stech, director of global marketing for Motorola’s phone division. That’s because the iPhone will bring more consumer attention to ‘multimedia’ phones, and Motorola has strong offerings in that space, too, he said,” Hughlett reports. “Motorola and other phonemakers have been stuffing their wares with Web-browsing and music- and video-playing capabilities. But U.S. consumers still don’t seem to choose their phones based on such features.”
MacDailyNews Take: They don’t get it – just as umpteen makers of “iPod killers” didn’t get it. Forget about “strong,” Motorola has no offerings in iPhone’s space whatsoever. Motorola, like everyone else, is standing smack in the middle of Apple’s new superhighway, frozen by the brilliant light that is the oncoming iPhone. Just like Sony, Microsoft, etc., which were all supposed to bat away Apple’s iPod+iTunes with ease, these phone makers are nothing more than future roadkill.
Hughlett continues, “Initially, Apple is going after ‘mind share,’ not market share, said John Jackson, a wireless industry analyst at the Yankee Group. But eventually, Jackson and other analysts are looking for Apple to broaden its iPhone offerings to include stripped down—but cheaper—devices.”
Hughlett continues, “In other words, they’re looking for Apple to do what it did with the iPod, where prices vary by device size and storage capacity. The iPod Shuffle can be had for $79; the iPod Nano starts at $149; and an iPod with 80 gigabytes of storage goes for $349. ‘When the iPhone Nano comes out at $120, everyone is in big trouble,’ Jackson said.”
Full article here.
Anyone considering holding their breath for a $120 Apple iPhone should have medical attention standing by at all times.
“……Motorola has strong offerings in that space, too, ….”
Oh yeah ?? and what would that be ??
Face it, Moto … if youre not running Leopard on yer phone… then what you got is a crappy wannabe …
I’m waiting facts about pricing and what happens when it happens.Guessing and supposition are just that. We can all guess and suppose but until the 29th we won’t know.
The iPhone is not a phone. It is a paradigm shift.
Know what I would actually like to buy from Moto? A simple, durable, functional phone, without all the half-assed “multimedia” designed with teenage Japanese girls in mind. Rubber cased. Survives a drop. Big buttons for my big manly fingers. Are they smart enough to figure that one out? No. I get a freakin’ camera that takes shi**y pix, and I get to say “you broke up” 450 times a day.
Skate to where the puck will be, Moto. The puck you can actually reach. The iPhone puck is out of your league. Before it’s too pucking late.
Denial is a typical first reaction to overwhelming loss… as in losing your market share to a superior product.
@ Shiva
If youre talking about pricing on the iPhone (itself) ..watch this to see why its in the $500-$600 price range ..
(this proves the iPhone will blow everything else away !)
But if youre referring to the service pricing plans AT&T / Cingular will have .. well, you got a point !
Moto has clearly mastered the art of layoffs. Best in the industry. The last one standing has clear instructions on how to lay himself off.
the price will come down, that seems obvious.
I doubt Motorola won’t even be around (or at the very least will be a much smaller company) within 2 years. They just don’t seem to be able to do anything right…
One of their most popular phones, the RAZR, is OK looking now, but the UI sucks… The iPhone will strongly impact their wireless business.
Motorola purchased Timbuktu and since the purchase their IP locator service has basically been non-functional. Why spend money purchasing a new product and then screw it’s existing users. Like I’ll even purchase a Motorola version of Timbuktu now.
I have a total and complete lack of faith and trust in them.
Actually, Motorola does have innovative phones. They just don’t sell them in the US because the lame-ass carriers here are afraid of them. I suspect the iPhone will put enough fear into them(the carriers) to allow us to see some of these Linux-based phones here at last.
“Face it, Moto … if youre not running Leopard on yer phone… then what you got is a crappy wannabe …”
And over 15% of the market. But by next year the iPhone is shooting for 1%… This is HUGE!!!!!!!!!!
“I doubt Motorola won’t even be around (or at the very least will be a much smaller company) within 2 years. They just don’t seem to be able to do anything right…
Oh yes, with Revenue of $41.2 billion, they’re on their way out! Do you have any idea how many Police, fire, and Public service agencies use nothing but Motorola equipment? Any idea how much they earn from certifying companies in Six Sigma?? You do know that Motos market share is on the rise again in the cell phone industry as well????
But then again, you don’t even care… Everyone who isn’t Apple is “Beleaguered”. It’s easier to call anyone who points out fact a troll while mindlessly hooping and bragging about your small (VERY SMALL) fraction of the cell phone industry…
Of course, as of today, your market share is 0%
@Realist,
Under promise, over deliver. Market share of 1% is a convenient benchmark that will make Steve Jobs seem even more impressive when the iPhone far surpasses it.
Motorola is whistling past the graveyard in hopes that no one will see their fear.
Not very far reaching MDN take: I too believe there will be cheaper iPhones around some way down the road, maybe even at $ 120 (although I wouldn’t hold my breath for it, but just because it may take longer than I can hold it).
Yeah, I do think that Apple will start making a few other iPhone varieties, but $299 is probably the cheapest they will be in the next 3 years or so.
Realist/PC Fan,
Why don’t you make it a little more obvious that you are posting under 2 different names?
They’ll always be a market for cheap phones. The problem for Moto will be that they’ll be lots of others making those commodity products. And those others will have much lower cost structures than Moto.
To avoid that, Moto must move upward, adding not only design (which Moto already has) but also software because the more expensive phones will really have to be small networked computers. And the software has to be high quality not only for the UI, but also for the built-in capabilities. Does Moto have that ability? Based on the RAZR that I have and the flop of the ROKR, I would have to say not yet.
I have a moto a780 which is not sold in this country and uses linux operating system and it really works well not until they start to use operating system like that will the ever be-able to make a phone like iphone—-using touch screen to its fullest. If people use a a780 or a ming phone they would understand why apple is doing something great. (touch screen it just work great no problem like the treo and very easy to use)
all this stuff just confuses me
count me out
oh crap, another BSOD
Yes, today Apple’s market share in smart phones is 0%, but a week from today it will be more than 0%. Any gains Apple makes will be at the expense of companies like Motorola. Face it, Police, Fire, and other public service agencies could benefit enormously from the iPhone. When it has demonstrated its usefulness to the public, it won’t be long before those agencies start switching.
I’m not so sure about this ‘iPhone Nano’ business. I just don’t feel like the product model is going to go in that direction. A stripped down phone without basic computer features will seem quaint in 2 years, so why shouldn’t Apple create an up-market instead of a down one? What I see is the current model getting a price reduction and Apple putting out an iPhonePro, with extra goodies like GPS, and targeted directly at the corporate market. Of course things like GPS would eventually be on all phones, but the Pro model would get hardware features first, or at least a more top-shelf version of those features.
It would be a marketing thermite grenade. Just exactly when everyone is bitching the loudest about the lack of a professional-centric model, Apple puts out exactly what they need, and what no one else is able to give them.
Now *that* one… that is the phone that’s going to crush this industry.
-c
MW: ‘returned’
“Of course, as of today, your market share is 0%”
That’s true, but I don’t make cell phones.
-c
MW: ‘company’
@ Phoney Realist
When it has demonstrated its usefulness to the public, it won’t be long before those agencies start switching.
Cracks me up, you have no idea what you are talking about. I’m, sure these agencies are going to switch from there Moto UHF radios and purchase what from Apple????
As usual around here, the fanboys here don’t even know what Motorola’s product line is. Yes Sir, I want me a 20 Channel Digital UHF FM Police radio from Apple!!
Apple again is going for the cream of the consumer dollar; the place where value matters more than price and margins are high.
People don’t get it. Motorola, LG, etc are the Dells and HPs of the cellular industry. Apple will let them fight it out all day for the low margin 99% of the market. Apple is pursuing the high margins where you can actually make money.
If by ‘benefit’ they mean finally be able to figure out how to create a usable interface for their crappy phones, then yeah.
Sadly, Apple owns a buncha patents so.. maybe not so much.
Wake up, Realist. Lots of police are already using cell phones in addition to their radios. In some cases, they’ve already given up radios. Is that true for all police? No. But it wasn’t true any of them just ten years ago. The change has already begun, and the iPhone will accelerate that change. Motorola knows this, which is why they’re scared.
to be honest i’m not really interested in the iPhone, it looks amazing but really i’d rather wait till things settle right down, prices come down. i’d rather have a RAZR2 in the near future too