Jan 19th, 2007
iPhone losing its Luster
Apple made an interesting decision with the iPhone, announcing it 6 months before it will be available. It’s been stated this decision was made because FCC requirements require detailed reports to be filed and it was believed the media would find and report that information, limiting Steve Jobs ability to make a surprise announcement.
That 6 month window leaves lots of time for the luster to fade from the iPhone and it appears that just a week after the announcement that has begun to happen. Industry analysts have several concerns over the iPhone:
Price Point:
Apple has reported that the iPhone will cost $499 for a 4GB model and $599 for an 8GB model both with a 2 year service contract. Sony’s PS3 with the same price point as the iPhone, $499 and $599, has seen limited success since its launch in November. While Sony at that price looses money, Apple it has been estimated will make a 50% profit on iPhone sales. But iPhones will have an extra hindrance requiring users to switch service providers and enter 2 year service contracts.
No Mobile Music Downloads:
Though the iPhone has web access through both WiFi and EDGE it’s been reported the phone can’t download music directly from the iTunes Store. I wouldn’t be surprised if this changed in the release version of the phone. Steve Jobs loves secrecy and surprises so I expect their holding some things back for the final release announcement.
Not Wide Screen:
While Steve Jobs boasted about the iPhone being a “widescreen iPod” it’s actually not. Anyone who sat in Moscone Center to witness the unveiling surely noticed the screen cropping (letterboxing) that occurred when Steve played Pirates of the Caribbean. That’s because the iPhone isn’t “widescreen” as the term is customarily understood with a 1.78:1 (16×9) aspect ratio. Rather, the display utilizes a 1.5:1 aspect ratio. As demonstrated during the Jobsnote, true widescreen videos can be zoomed to fill the iPhone’s screen but only at the expense of cropping the left and right-hand side video.

But at the end of the day none these feature problems are going to hinder iPhone sales and the price point may actually help sell it. Because to me the iPod isn’t about the best music player, it’s a status symbol for the owner and with the iPhones new higher price point the phone will be even more elite than the iPod.


