iPhone Therefore I Am
Most of the iPhone activation issues can be attributed to AT&T's difficulties with unprecedented volume over its inaugural weekend and problems with switching phone numbers between cell phone service carriers. These are regrettable but to be expected. But I think Steve Jobs is positioned to do to the cell phone carriers what he did to the recording industry. Embrace and betray.
First, Steve Cool came out with iTunes, signed up all the major labels and sold individual tunes. Later (quite a bit later) he shook his fist at them for the burden of digital rights management. You see, he never wanted it, the evil music studios forced it on him. Perhaps. Perhaps he also realized that he made most of his money selling iPods (and replacement batteries), not tunes.
This could play out in the cell phone market. Apple makes 100% profit on the iPhone. It chose arguably the worst performing cell phone network. Steve Cool could, after a modest interval, issue a manifesto cursing the evil cell phone industry and demanding they free their networks for unlocked, unfettered cell phones. Hero to the masses, Steve Jobs!
In both cases, Apple is the anti-Gillette, making its money on the razors and advocating that others give away the blades.
On the other hand, the most common knock against the iPhone design is the non-replaceable battery, which could set you back a pretty penny and a lot of inconvenience every year or two. This "feature" is borrowed from the iPod. Are batteries the real Apple razor blades?
Item: A number of blogs have reported that the iPhone makes a real good iPod. Call it the iPod Maxi. Who needs the icky phone service?
Item: Another view is that the iPhone makes a great handheld internet computer if you are near a WiFi hotspot. Call it the iNewton. Again, who needs the phone service?
The next generation of Apple devices could be very interesting.
Copyright © 2007 Philip Bookman
Technorati: Business Strategy, Strategic Planning, iPhone, Apple
First, Steve Cool came out with iTunes, signed up all the major labels and sold individual tunes. Later (quite a bit later) he shook his fist at them for the burden of digital rights management. You see, he never wanted it, the evil music studios forced it on him. Perhaps. Perhaps he also realized that he made most of his money selling iPods (and replacement batteries), not tunes.
This could play out in the cell phone market. Apple makes 100% profit on the iPhone. It chose arguably the worst performing cell phone network. Steve Cool could, after a modest interval, issue a manifesto cursing the evil cell phone industry and demanding they free their networks for unlocked, unfettered cell phones. Hero to the masses, Steve Jobs!
In both cases, Apple is the anti-Gillette, making its money on the razors and advocating that others give away the blades.
On the other hand, the most common knock against the iPhone design is the non-replaceable battery, which could set you back a pretty penny and a lot of inconvenience every year or two. This "feature" is borrowed from the iPod. Are batteries the real Apple razor blades?
Item: A number of blogs have reported that the iPhone makes a real good iPod. Call it the iPod Maxi. Who needs the icky phone service?
Item: Another view is that the iPhone makes a great handheld internet computer if you are near a WiFi hotspot. Call it the iNewton. Again, who needs the phone service?
The next generation of Apple devices could be very interesting.
Copyright © 2007 Philip Bookman
Technorati: Business Strategy, Strategic Planning, iPhone, Apple
Labels: Apple, Business Strategy, iPhone, Strategic Planning
posted by Phil Bookman at 9:02 AM
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