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. @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.

  2. 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.

  3. 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!!!

  4. 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.

  5. 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.

  6. 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.

  7. 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.

  8. 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…

  9. I don’t get people saying there is not enough storage when the iPhone has more storage than any other phone on the market.

    It does not have as much storage as a video iPod but, guess what, it’s not a video iPod, it’s a phone.

    Zach,

    You already have a 80GB iPod, why do you need an 80GB phone?

  10. Same reason why I got a PDA… didn’t want to carry around a Phone and a PDA… I’m actually planning on getting a Treo 750 from Cingular in July when my contracts up… debating on the iPhone. At least I know the iPhone will sync with my Mac which I’m getting when Leapord comes out!

  11. If you look at the history of iPod hard-drive storage; 5 GB to 80 GB, for more or less the same price, in five years, and we assume that there’s going to be the same price development with flash memory, then the problem is going to solve itself, albeit slowly for some of us.

  12. Big Al: “I don’t get people saying there is not enough storage when the iPhone has more storage than any other phone on the market.”

    Just because it has more storage than other phones doesn’t mean that it has enough. People use the same device in different ways and want different things from it.

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