Was Steve Jobs too optimistic? Is the iPhone too advanced for its own good? We take a close look at the iPhone dynasty in its current state.
Ever since the introduction of the iPhone, we've all been talking about this only being the first-generation of the handset. But will there be a second-gen iPhone?
Was Steve Jobs too optimistic?
A rather optimistic Steve Jobs has boldly stated that Apple is currently several years ahead of the competitors in the smartphone market. In theory we may agree with him, but in the real world, as our "Living with the iPhone" feature series and iPhone review give an insight on, the iPhone concept as a whole is nowhere close to perform at the level we had expected. Smartphones and mobile technology in general are always way better on paper than in the real world, unlike an 80GB hard drive that usually delivers 80GB as it is supposed to.
iPhone may be too advanced, in some aspects, for its own good
So, why didn't Apple delay or even cancel the first-generation iPhone, like so many other smartphone manufacturers do with their über-phones all the time?
Even a short delay would have had a negative impact on iPhone sales, and a cancellation would have been a disaster for the project. Most likely, Apple also hoped that their strong focus on advanced multimedia capabilities would overshadow issues regarding the iPhone's calling and messaging capabilities. Still, we think it was a mistake by Apple to allocate all their developer resources to the multimedia aspect. If Apple had come up with great calling and messaging capabilities as well, we're sure that any carrier would have included it in their portfolio at a subsidized price. As it turned out, early adopters had to pay for Apple's mistake.
Apple seems persistent in continuing iPhone development
The latest and most defensive move from Apple, the recent $200 price drop, also sends out mixed signals. Price drops are normal in the mobile industry, but usually come as a result of new and improved handsets being released. Apple's price drop, however, came when Apple introduced the iPod touch - the iPhone without the phone. Unlike manufacturers such as Nokia, that are funding high-end projects with mass sales of low- and mid-range handsets, Apple has to rely on strong sales of one single handset. Without a price drop, everyone would have bought the iPod touch in stead. Still, even with a price drop, we don't think the first-generation iPhone sales will improve that much. High-end multimedia smartphones are still a niche product, and will continue at that until they are affordable to use for average Joe.
With all the rumors of a European version of the iPhone, Apple still seems persistent in continuing iPhone development. The competition in the high-end smartphone market in Europe is tough though, so even a HSDPA enabled iPhone wouldn't necessarily stand out as much from the crowd as one would imagine.
If the holiday sales turn out to be poor for the iPhone, Apple may soon come to a point where it's actually not worth spending more money on the iPhone development. What makes the iPhone special has nothing to do with its phone capabilities, and everything to do with its multimedia capabilities. With WiMAX networks just around the corner, a WiMAX enabled iPod touch or even classic, seems like a much more compelling product than an iPhone with mediocre calling and messaging capabilities.
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