Why Apple’s iPhone doesn’t do high-speed mobile phone networks (yet)

“One of my colleagues in the ex-Forrester Mafia is Paul Callahan, who rightfully questions why Apple’s iPhone doesn’t support high speed, third generation (3G) phone networks and/or High Speed Download Packet Access (HSDPA; who comes up with these absurd and untypable acronymns?). Instead, iPhone only supports the ubiquitous GSM/EDGE standard,” Carl Howe writes for Blackfriars’ Marketing.

How argues that there are three pretty compelling drivers for this conservative decision:

• The exclusive Cingular deal
• The bundled apps
• Built-in WiFi

Howe writes, “Apple went conservative on the phone network since it was, after all, their very first phone. If this one works and sells well, they’ll get to do more versions with more bells and whistles, just as they did with the iPod. If it didn’t work because of some glitch or chip availability problem with the high-speed networking gear, they wouldn’t sell any, and that would be that for Apple phones. Which decision makes more business sense?”

Howe writes, “Even using good old GSM/EDGE technologies, my prediction is that Apple will sell every single one they can build for the next 18 months. Those that just have to have high-speed can wait for iPhone 2.0. But for the majority of phone users, iPhone is plenty drool-worthy as it stands.”

Full article here.

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FUD Alert: Analyst – I am pretty skeptical Apple’s iPhone can succeed – January 11, 2007
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