The calm before the Apple iPhone Storm

“It is interesting how in the final days before the iPhone Arrival Storm, the other cell phone manufacturers and cell phones networks seem to think all is well,” TWO A DAY blogs.

“After all, this system has served them well for 15 years, a lifetime for bureaucrats. And long enough to fool many analysts who make proclamations such as the iPhone will not equal the success of the iPod … that is sort of like saying, the Moon is not the Sun – they are right but then they’re really not saying anything at all,” TWO A DAY blogs.

“Really, how far have we advanced in the cell phone business? I’ve had a cell phone since the early 1990’s – I could not afford the Motorola brick but I remember a flip phone after that (pretty sure it was Motorola) and paying about $1 a minute for a call and the thing having a battery life of about 30 minutes. Now, some 10-12 phones later including the Palm, Handspring, Treo, Blackberry and the RAZR, have we really advanced that far? Surprisingly no. I had the Motorola Startac which was an excellent phone. It didn’t do much except have an address book and maybe one other feature and now, 11 years later, the RAZR is actually heavier … though it has a video camera, still camera and WiFi capabilities but beyond taking blurry photos and blurry videos, has it really changed? It has sync but it’s a dumb sync – insisting that if my contact has 5 numbers, every number should get an entry. So, it’s back to entering each name by hand with its wonky keyboard and “smart” feature that is about as smart as a tree on fire,” TWO A DAY blogs.

“The iPhone is $500 which is not immediate disposable money for most people but then you can spend $500 on a round of golf & some drinks, or dinner for two or for some people, a month’s rent. $500 can buy you a diamond, shoes, a used car or a clothes for a year. $500 is just a number – whether it’s costly or cheap is completely your perspective, income and buying expectations,” TWO A DAY blogs.

TWO A DAY blogs, “There are probably 100 million people just in the US who could afford $500 – whether they want to buy an iphone with it or not is another question but that’s like everything we buy. Whether we buy something because it’s useful, because it’s cool, because we want it, because we have to have it or just because it makes us feel good – everyone is different. You cannot just randomly say something is more expensive and that will make it a difficult sale – if anything, sometimes the higher prices makes it an easier sale…”

TWO A DAY blogs, “The iPhone is a reset for the cell phone industry. People will buy it in droves because it’s probably going to deliver a lot more than every promise by the cell phone industry … I’m not saying it’s going to be 100% but it will be much more than what’s been delivered so far… The report card will be how close to 100% Apple delivers. If it’s an “A,” then the cell phone industry has to revamp EVERYTHING because suddenly they are peddling horses and a carriage. Then the other big decision will be – should we be petty and point out all those who are called analysts but were so far off the mark?”

Much more in the full article here.

[Thanks to MacDailyNews Reader “Patrice” for the heads up.]
The answer to the last question is, “Oh, yes. Yes, we will.”


  1. Tsunami!

    Gawp with awe & wonder, then feel sorry for those who ignored the warnings & went fishing instead because the fish were grounded. Finally admire the so called dumb animals that run for them that thar hills according to their instincts.

  2. It’s like those who thought that gourmet coffee like Starbucks would never sell because it was like 4-5 bucks a cup. People will typically only pay what they are willing to for any good or service. If they feel the price is justified, that the product or service is worth the asking price, will they buy? Certainly. Otherwise how would Starbucks have so many stores, or Apple (at last count, 180+ globally)? Clearly the product was worth the price. I see the same thing happening for the iPhone and I have little to no marketing experience. Disclaimer: I am not a stock broker, analyst or financial advisor. I only write what seems to be common sense from a consumer standpoint. But then how many analysts have common sense these days?

    MDW, “charge”. When your opponent is retreating is a great time to charge.

  3. @amyhre

    Starbucks, gourmet? ICk!!! More like Charbucks and their crapacinos are the McDonalds of coffee when it comes to quality. It’s always best to find small shops with a staff that knows the difference between a French Roast and a City Roast, or an Indonesian bean versus an African bean and different varietels to be found.

  4. My 500 bucks is going on a wide-screen, 100+ gig, iPod. The iPod capabilities of an iPhone are wasted on me as are the internet capabilites so why pay for them — I want a small flip phone that I can switch out batteries on enabling me to go for several days without charging.

  5. I’m not buying, don’t need it, don’t want it and it doesn’t have enough to justify it’s cost regardless

    Won’t replace my 10 megapixel zoom camera that cost me $400

    Can’t hold all 60GB of my music collection.

    It has no GPS so it doesn’t replace my TomTom which gives me directions, lets me bookmark locations, guides me as I drive. Finds alternatives if there is traffic ahead and other goodies.

    The iPhone doesn’t even replace my computer, the screen is too small and the storage is lacking.

    I already have a slim phone that fits nicely in my pants pocket, it was free.

  6. At this point in time, the only thing that will limit the amount of iPhones Apple can sell will be the speed at which they can manufacture them. I think this is what’s behind the delayed appearances to Europe and Canada as Apple wants to secure their (strongest) US market first. Does anyone have any ideas how many iPhones Apple could produce in a year by leveraging their current list of manufacturers?

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