Tuesday, December 12, 2006

Apple's iPhone ... Can it fail ??


There are a million reasons why the worst kept secret in the world, Apple’s upcoming iPhone, will succeed. Unfortunately for the Cupertino company there are even more reasons why it will not.

When Apple first introduced its iPod range of mp3 players it solved a big problem for consumers; space. The music players had up to that point been severely lacking in storage capability and the public knew it.

Enter Steve Jobs with his funky glasses, bean bags in the office and beautiful design. The iPods took the world by storm, and has no doubt been the catalyst to Apple’s other successful products. Ultimately, however, Apple is not a phone company. The last ‘revolutionary’ product that came out of the hipsters was the Mac mini, which largely flopped.

The mobile phone market is extremely competitive, and newcomers normally don’t do too well. Not only do the manufacturers have to compete on technology and performance, but getting in on lucrative deals with the carriers as well.

Apple also has to take into consideration the frequency that people trade in their cell phones. Unlike a high end mp3 player, mobile phones can be traded in as often as twice or three times a year, according to trends and emerging technology. Apple can not afford to jump on an already frantic race to always be first to market as well as being competitive on price. Ultimately, end users will be very interested to see Apple’s offering, but the hype will die off eventually.

I am sure the good people at Apple are aware of these concerns. At times they have proven to be equally brilliant at creating a profitable business model, as at creating eye-catching products. What future holds for Apple, we can only wait and watch.

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