Digit takes a closer look at Apple’s iPhone

Jim Dalrymple, writing for Digit Online, takes a closer look at some of the more frequently asserted Apple iPhone opinions.

“Closed system? Users of traditional smartphones often add third-party apps to the devices that augment the phone’s features — everything from utilities to document management tools. But some analysts seem to be interpreting Apple’s reticence to talk about third-party opportunities as a sign that developers will be shut out of the iPhone system,” Dalrymple writes.

“However, it’s not clear that’s necessarily the case. Jobs did tell the New York Times that Apple would ‘define everything that is on the phone.’ But that’s not the same thing as preventing third-party developers from creating any sort of iPhone add-on,” Dalrymple writes. “Instead, what Apple might do is keep a tight lid on the iPhone through its initial launch, giving developers more opportunities as the phone gains greater footing.”

“Too expensive? Priced at US$499 for a 4GB model and $599 for the 8GB configuration, the iPhone will not come cheaply. And that has some analysts throwing up their hands,” Dalrymple writes.

“In the case of the iPod, after rolling out the initial device, Apple began dropping prices and adding features. These days, you can buy an 80GB colour-screen iPod that not only plays music but also videos and photo slideshows for $349 — $50 less than the original iPod,” Dalrymple writes. “It’s not inconceivable that the iPhone will follow a similar path — attract early adopters who will pay the $499 price tag right out of the gate while expanding to a wider audience as time goes by.”

“iPhone [could gain] a toe-hold in the market, analysts say — by bringing Apple’s typical ease of use and simplicity to existing capabilities,” Dalrymple writes. “And that may be enough to allow Apple to reach its modest sales goal for the iPhone’s first year — sell 10 million units, or 1 percent of the number of mobile phones sold around the world last year, in 2008. ‘While Apple is no threat to Motorola in the broader sense, they will make an impact in the industry because the iPhone will be the gold standard as to what a smartphone should be,’ said Tim Bajarin, president of high-tech consulting firm Creative Strategies. ‘It will send a lot of companies back to drawing board.'”

Full article here.

MacDailyNews Note: Apple’s iPhone user interface “is the result of years of research and development” and “boy, have we patented it.” – Apple CEO Steve Jobs, January 09, 2007

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19 Comments

  1. Nice to see the drawing boards being used, but how do the others get to use some of the 200 patents that Apple has?

    Is Apple going to sit still on the current design?

    How significant is a high price to the high income business crowd? It’s remarkable that the price is so low, considering the likely demand curve.

    The iPhones are intended to enhance productivity, as with the Mac computers, and that is why the market for the current and future versions will be huge.

    This is not yet reflected in the share price. What that will be in the last half of 2007 is cause for excitement.

  2. In his otherwise good article, Jim Dalrymple misses one important point when comparing the relative ‘high’ price of the iPhone with the smart phones:

    The iPhone has has either 4 or 8 GB’s of memory. The smart phones have usually 256 or 512 MB’s of memory. That’s a big difference! It means the iPhone has between 8 and 32 times more memory!

    And memory costs money. Look at the difference in price between a 2 GB and an 8 GB nano, and here we’re talking about an even bigger difference.

  3. I think in this case I can vouch for Mr Bajarin. My company upon seeing the iPhone demo went back to their
    own drawing board except that it wasn’t exactly a board nor did they actually draw.
    It was a little more like smelting ore. Vapor….lots of vapor. I’m not sure my group is
    fully cognizant at this writing. Several of them sped down a rabbit hole this morning..the last one dragging an Enderle puppet with him.
    Oh, yeah. They also ate all the analysts that came by this week.

  4. Man everyone complains about price. I was talking to a worker at the Cingular store and he said that whenever the iPhone comes out, they will be selling it for $199(4GB) and $299(8GB) witha 2 year contract. so there you go. all you have to do is either switch to Cingular and get a 2 year plan or upgrade your phone whenever your plan runs out and you get an iPhone for a lot less.

  5. “LG Prada $799.
    Now that’s expensive!”

    Wait a second – I’m confused. I thought Steve Ballmer said the iPhone was the most expensive phone EVER.

    Huh, maybe he was wrong. Could it be that the CEO of a major U.S. corporation deliberately LIED to the public? Nah. If that were true, then the Chief Software Architect would be the next to lie through his teeth, and we know that hasn’t happened, has it?

    ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  6. Priced too high? If you look closely, for example, the Palm Treo 700p and others are priced at $649 full price. With 2 year contract, $299.

    The only bummer I see is that you get no price break if you agree to the mandatory contract with Cingular.

    Otherwise, it seems the price for the iPhone is pretty much inline with the current pricing of any of the dumb smart phones.

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