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.

Apple & Cisco have come to an agreement to both use the name iPhone, drop legal actions, work on interoperability (in future projects or with the iPhones?), plus some undisclosed agreements.

Personally it does not bode kindly for Apple's image. From unveiling, Apple appears to have muscled for a name knowingly owned by another. But Cisco wanted interoperability from the outset, so perhaps both parties got what they wanted. Apple could have avoided this by using their famous innovation to generate another name.

Similarly there is the hubub about Martha Stewart using Katonah trademark in her furniture line. Katonah says "No Thank You Martha," for fear of diluting the value of that name. I think Stewart has a better case since Katonah does not have trademark ownership and is already used by a variety businesses. On the flip side I don't know if she could protect the name from use by others.

Further browsing on the Apple website shows a new Airport with 802.11 n technology. First time I heard about n. I'm getting behind on the technology.

Cingular is Apple's exclusive carrier for the iPhone... must be Cingular's insistence on being exclusive (Has Cingular always been a unit of AT&T?). Other partners are Yahoo (mail, search) & Google (maps). Not surprisingly, Microsoft is missing from the party. That may smart given the layout of business land -- where is the document composition? Will I be able to install PDA software?

We will see by June 2007.

And what of this name iPhone... will it stick with Cisco's Linksys VOIP? Discussions are under way.

Update on Apple iPhone- it uses quad-band GSM on Cingular network, has Bluetooth, and Wi-Fi 802.11 b/g.

iPhone
The rumors were right. Apple confirms the existence of the iPhone at Macworld San Francisco. It is a smartphone: plays music & movies, displays photos; runs OS X - e-mailing, web browsing. It has a 2 MP camera. It has a patented touch screen that supposedly ignores unintended touch. I want to try this thing out.

Speculation gives way to more questions. Is the interface just as elegant? How much will it cost? When does it ship? It has headphone jack but does it have Bluetooth? Does it actually use cubic zirconium & ceramic materials? Who is the service carrier...Cingular (like the Motorola ROKR)? Will it self-compete with iPods sales as some predict? Will it survive the slew of phones competing out there?
Was timing strategy good for the unveiling, given the simultaneous CES conference going on in Las Vegas and all the hype leading up to this conference? Given the alternative of holding off there would have been a lot of disappointment. For Apple's sake it may overshadow the Apple TV, now released.

This new touchscreen makes me wonder if this is the future of iPods: retirement of the clickwheel?