Why iPhone could be more than worth Apple’s price

Apple Store“How do you sell 10 million [iPhones] if no one wants to buy at the price you’re selling? The answer, I think, lies in a little-noticed feature in the iPhone: Wi-Fi,” Tim Beyers writes for The Motley Fool.

MacDailyNews Note: Beyer’s thoughts on iPhone’s Wi-Fi are interesting, but before we give you a taste, a few more than “no one” want to buy Apple’s iPhone: AT&T has received 1 million Apple iPhone inquiries so far – March 27, 2007

Beyers continues, “Early coverage of the phone’s prospective features rightly gave little credence to this feature. It’s not like Wi-Fi is available everywhere. And try logging onto the Internet from a handheld device the next time you’re at Starbucks. Not exactly easy, is it?”

“Expect the iPhone to change that. Mac OS X, after all, usually sniffs out and easily connects Macs to Wi-Fi hotpsots. The OS X-powered iPhone will too. And mixing in a Safari browser that can operate in widescreen mode should make signing on to a premium Web service, at worst, manageable,” Beyers writes. “But if it’s a breeze, $600 could look cheap. Why? Skype.”

“What’s a Wi-Fi phone? It’s a device that allows you to make Skype calls without a computer. Instead, it uses a Wi-Fi connection to log on to the Web and into your Skype account. From there, software recreates the Skype interface to give users a working phone,” Beyers writes.

Beyers writes, “Skype on the iPhone could give users that without the angst of relying on VoIP as a line replacement. Would that be worth $600? At least — and that’s just one feature.”

Full article here.

Related article:
Confirmed: Apple iPhone + JAJAH VoIP – March 01, 2007

39 Comments

  1. Me, I’d rather use iChat.

    I’m actively worried, though, that Apple is knuckling under to AT&T by not installing iChat on the iPhone.

    And there may not be very desirable, simple alternatives to iChat (including Skype–can you really use it through a browser, with no downloaded application?).

  2. It won’t let you use skype unless skype is authorized to develop an application for the phone, which is unlikely. But, it will accept Jajah, because that is internet based.

  3. TOWERTONE is right on. Apple is hyper-aware of its products. It knows it can’t blatantly add an application that will directly compete with AT&T’s service, but it also knows that third parties will generally find a way to fill any voids in features. Look at the situation with cds vs itunes and DRM. He’s perfectly open about the abilities to remove the DRM from a track. He knows its easy to figure out how to get other movies onto aTV, etc. He just can’t subvert the wishes of his partners himself.

  4. Mark: JAJAH still uses your iPhone minutes sadly, if you’re calling within the USA there is no benifit to using JAJAH. Skype on the other hand through WiFi would not use your plan minutes at all.

    The big problem with this article is that Apple has stated that there will be no way to install 3rd party applications on the iPhone. Unless they chnage their tune, this is going to make a device with huge potential, into just another crippled device from “The Phone Company”.

  5. The little unknown secret is:

    That the iPhone would soon be connectable to mobile video glasses (myvu) and portable mini projectors. Also a stylus will be able to be used on the iPhone screen.

    Most people can kiss their laptop goodbye.

    You see, Apple knows that processors can’t get any more powerful without keeping them cool enough to fit into a laptop case. In fact I have it good info that Apple was attempting everything possible to introduce liquid cooling into their laptops but the technology is just not there.

    So now we are going to see a switch, usage of small portable devices like the iPhone for portable needs and bringing work home to the big Mac Octocore with 30″ screen.

    In fact Apple Remote Desktop will be expanded to be used on the iPhone.

    Yes, you will be able to control your Octocore Mac Pro monster from your iPhone.

    Imagine that.

  6. So… I’m gonna pay $60+/mo for a wireless plan so I could have Skype on my iPhone and make… phone calls? Why not call from the phone itself?

    Ok, ok, people will unlock the phone or use Skype to call Indonesia. All 8 of them.

  7. @pog

    You’re right. Jahjah, the way I understand it, is not true VOIP, like Skype is–it still uses the cellular part of your phone to complete calls. Like others, I fear AT&T will not stand for people using the iPhone to make calls on anything other than their network. They will be hard core about this.

    But, Pog, I don’t think Steve said that they would *never* allow 3rd party apps on the iPhone. Just not unauthorized, free for all, open source apps, like the Palm OS, etc. I think some special companies, working with Apple, might at some point be allowed to put apps (widgets) on there. Who knows, Skype might be one of those companies. I hope so at least.

    I’m really hoping for a true video ipod with wifi, safari, and tons of apps. That would be awesome.

  8. I’ve been considering cutting out my land line. I haven’t yet because the cell reception is terrible indoors. With wi-fi, though, that might be irrelevant. This isn’t the reason I would like one, but it helps.

  9. Anybody notice that Cingulars competitors are starting to offer deals, free trials and if u don’t like the service they will pay for you on another service. Others upping the ante more of this and that. They are afraid of the iphone and they should be.

    Bye bye larda$$ …. Hardhat!!! Hardhat!!!

  10. I think apple should release another version of the iphone without the wireless GSM chipset and place the video camera on the front of the phone instead of the back.

    This device would be the perfect platform for iChat….video phone! Without the wireless chipset, it will be alot less in terms of price and no 2 yr contract with Cingular! Perhaps they could get it down to $299! No doubt it would take the market by storm.

  11. I agree with the author that the iPhone’s biggest selling feature will be in its WiFi capabilities (that’s why I want one) but he’s REALLY slow to be just figuring it out now. There will be a number of options for the iPhone user to use different IM clients, VOIP (Skype, Jajah) and whatever Apple will launch themselves on the back of their iChat/Bonjour network.

  12. My hold back on the iPhone is the amount of storage available on the unit… When I watched the keynote he said only 4GB and 8GB I was like… your kidding me right? I could understand like 15 and 30… that’s one reason why I went with the 80GB iPod because I have 40GB of music and I didn’t want to have to decide which songs to put on it.

  13. I think the iPhone should work with Gizmo, not Skype. Skype is proprietary while Gizmo uses the SIP standard. For those wanting to use their mobile device for wifi-calls, why not just get a Nokia N800. It’s got a bigger screen than the iPhone, 800×480. If Apple wasn’t releasing the iPhone, I’d give serious consideration to the N800 and Gizmo.

  14. In regard to storage concerns, don’t forget about D.A.V.E
    http://arstechnica.com/news.ars/post/20070201-8753.html

    In regard to iChat capabilities on iPhone, don’t you think Apple understands that iChat is the future model of telecommunicating.

    No iSights in a long time. No new displays in a long time. Leopard and iPhone secret features. New iMacs coming very soon. A patent filed the January before last:
    http://appft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PG01&p=1&u=/netahtml/PTO/srchnum.html&r=1&f=G&l=50&s1;="20060007222".PGNR.&OS=DN/20060007222&RS=DN/20060007222

    Perhaps, perhaps, perhaps…

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