An Indian Civilizational Perspective

The new iPhone – Questions about it…

Apple yesterday unveiled the iPhone. This is a new device that combines a Phone, iPod, camera, and Internet surfing with searches from Yahoo and Google, mail from Yahoo and maps from Google!

While the Apple shares rose, those of Palm (maker of Treo) and RIMM (Blackberry maker) fell:

Apple shares jumped $7.10 to close at $92.57 on the Nasdaq Stock Market, creating about $6 billion in new shareholder wealth. The stock has traded in a 52-week range of $50.16 to $93.16.

Meanwhile, shares of other smart-phone makers slid: Treo-maker Palm dropped 5.7 percent, BlackBerry’s Research In Motion Ltd. lost 7.9 percent and Motorola Inc. shed 1.8 percent.

The questions that come to the mind are:

1. If the Palm Treos and Blackberry sales will come down as the falling stocks of their manufacturers testify, then there is enough reason to believe that even the iPod sales would falls – since the new device replaces an iPod too!
2. The device will be offered by CIngular with a 2 yr contract and it will cost $499 and $599. How many will buy an 8 GB device for $599, when the person can buy an 80 GB iPod for $345 and a Treo for about free at times or just over $250? That means in roughly the same money one can buy a larger capacity and lesser contract time with the phone provider – with the flexibility and freedom of choosing your provider, if I may add!!

And this is all with the prediction that it will sell 10 million pieces. iPod has just completed its 100 millionth sale. So we are looking at a great sale event here in the coming years!

What do you think?

PS: and then there are these questions over its name as well..

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2 Comments
  1. davedash says

    I think the iPhone will appeal to a lot of first time iPod buyers, and although the price might be significantly higher, the perceived value is you’re buying something revolutionary (it isn’t), but at the very least, your getting something well designed (which many will think). There are little things here and there that intrigued me… like the voicemail features. I’ve been saying for years that voice mail needs to be overhauled (I may have even written a piece on it)… but its small things like that, that really make this an interesting product, IMO. And I agree… if it weren’t for the high price, iPod sales will slump but the profits will be replaced by the iPhone, no doubt.

  2. davedash says

    I think the iPhone will appeal to a lot of first time iPod buyers, and although the price might be significantly higher, the perceived value is you’re buying something revolutionary (it isn’t), but at the very least, your getting something well designed (which many will think). There are little things here and there that intrigued me… like the voicemail features. I’ve been saying for years that voice mail needs to be overhauled (I may have even written a piece on it)… but its small things like that, that really make this an interesting product, IMO. And I agree… if it weren’t for the high price, iPod sales will slump but the profits will be replaced by the iPhone, no doubt.

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