iPhone Strategy
iPhones hit stores at 6 p.m., 1 week from now (June 29). Details about the plan are still vague but news estimates have it at $60/month phone service + $20/month unlimited data = $80/mo. or $960/year. The phone itself will cost ~$600 (8GB model) and there doesn't seem to be any AT&T subsidy to buffer the cost. I want one, but practically I can't afford it.

Just like iPods, part of the initial draw would build on the fact that only a select few--the affluent and trendy have it. If you follow the music player market, as it grew, the white headphones became more widespread, a turn off to some early adopters (no longer elite), but the larger draw shifted to a stage of belonging, being in, an elevated expectation of norm. How else could you answer, "What's on your iPod?" (not that I could answer that)? The iPhone's price point has it's role in maintaining cool. A strategy which Apple will not exercise is making the phone first available only for the Mac, as they did with the iPod.

People believe the iPhone has greater function and customization than a Treo, Blackberry Curve, Blackjack, etc. Sure it has a full operating system (Leopard) and full web browser (Safari); yet the OS's potential may choke at outset. Security restrictions have not opened the phone to third party developers ("Where's the iPhone developer kit?"). The only means of expanding function are via webwares and working at Apple; perhaps that's enough. The interface is great intuitive eye candy but these do not replace the office. In the least, the iPhone would benefit from having document & spreadsheet software. The current absence of these imply that Apple is targeting trend setters and consumers not business-types and industry. Expectations are overblown. Gear lust - it's real and it's hungry.

Update: iPhone Guide video on Apple's website. It looks beautiful and its surface is optical glass. "Nothing compares to holding one in your own hand."
Features: phone, email, SMS text messaging, browser... plus Notes, Stocks, Google Maps, Weather, the ability to read .doc and .pdf, YouTube. Integration is well done, something that 3rd party developers will likely be unable to access.

No games shown. It would be cool if programs were written to take advantage of the proximity sensor (used to detects if the phone is close to your face), accelerometer/gyroscope (detects if phone is in landscape or portrait mode), the touch screen, and microphone. It could be the sleek alternative to Nintendo DS.