“The iPhone is a fabulous slim, sleek and sexy device. Loaded with most of what you’d expect of a high end smartphone today, with most obviously an enormous bright high-resolution screen of 3.5 inches in size (for comparison my new Nokia N-93 that I was so happy about last week, has a screen of only 2.5″ in size,)” Tomi T. Ahonen blogs for Communities Dominate Blogs.
Ahonen writes, “The resolution of the screen is also impressive at 320 x 480. That is twice that of its typical music-playing rival smartphones from SonyEricsson, Motorola, Nokia, LG and Samsung. When combining video viewing, internet browsing and Apple’s smart touch-screen (they call it Multitouch), this screen size and resolution are both justified, and clearly differentiating from much of the competition.”
“The iPhone has the newest and best iPod features built in, so it is a true iPod phone, not like the sad Motorola Rokr was. No matter how much the industry has loved SonyEricsson’s Walkmans as “iPod killers” – we can safely trust that this iPhone will be the best of the bunch for music,” Ahonen writes. “And the rest of the phone features are pretty impressive too for a high-end smartphone, with quad-band GSM, meaning it works in every GSM network, meaning the most wide network coverage in the world, covering almost 80% of the phones in the world. It also has high speed cellular data, on the EDGE standard (what is often called 2.8G, just short of 3G) and WiFi and Bluetooth.”
Ahonen writes, “This is a serious flaw for the market outside of America, but not really a major flaw for the American market itself. Unfortunately adding 3G to the phone involves a complete additional radio unit, increasing weight, complexity, reducing battery life etc. So this is not an easy upgrade to the next iPhone. Adding 3G is a very complex and costly step, and it also requires “double” the amount of testing at all network operators before it is accepted into the supported handset portfolios of any operator. This may be part of the reason why Apple launches in America first (being the laggard market in mobile telecoms and in 3G) and Europe next, with Asia last (as South Korea and Japan are the industry leaders especially for handsets, mobile internet and music on mobile, as well as 3G).”
Ahonen writes, “Even if mobile phone sales grow only marginally in 2007, this means a target market for Apple of 120 million smartphones. And Steve Jobs talked (in his interview on CNBC right after the announcement at Macworld) about capturing 10 million of those, in its first year. 10 million is 1 percent of all phones, that is ‘reasonable’ but 10 million is 8% of the worldwide smartphone market – that is quite a tall order in its first year, and even more so with only two phone models.”
“Musicphone sales rocketed in 2006, more than doubling. It is fair to assume, even at very conservative rates, that musicphone sales will reach 400 million units in 2007. This of course includes most of the 120 million smartphones mentioned above,” Ahonen writes. “Now we are talking about a valid market opportunity for Apple. 10 million means only 2.5%, and that is quite do-able.”
Ahonen writes, “So back to America. If we again assume that the 7.5% of all musicphones are sold in America, it gives us a market of 30 million. If under half are on GSM, we’re at 14 million, and out of those, if Apple wants 4.7 million – that means 33.5%. A tall order, but it can be done.”
Much. much more in the full article, a very interesting analysis, here.
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