Apple's iPhone exclusive to Cingular

That was funny as heck, I needed a good laugh today.

 

And I hope with no hard keys nobody ever confuses the shower icon with the mace icon on the touch screen

 

i have to say that i like the treadmill part but the sideburns were pretty nice too

 

iPhone To Energize Development Of Cellular Media Devices

In the recent report, Strategy Analytics expects the iPhone launch to be a sorely needed "shot-in-the-arm" to the traditional handset markets development efforts in cellular-enabled media devices, but the lack of W-CDMA support could prevent it from hitting Apple volume projections.

David Kerr, Vice President of the Global Wireless Practice at Strategy Analytics states, "While the hype around the iPhone is reaching dangerous levels, one benefit we are already seeing is a greater emphasis from handset OEMs on improving usability and making interaction with the handset easy and intuitive for media and productivity applications. Just as the Motorola RAZR energized design innovation, Apple's strong global brand and reputation for innovation in this area will be a catalyst for change. Traditional handset OEMs must improve or face being cast aside by operators who are looking for both strong usability and brands to drive their data service initiatives."

"It is possible that the lack of 3G cellular connectivity on the phone could be a bigger issue than Apple is ready to admit," adds Chris Ambrosio, Director at Strategy Analytics. "This puts significant pressure on the iPhone to be a strong performer out-of-the gate. European operators, who are increasingly willing to offer devices that emphasize off-portal content, if it helps drive their overall branded services value, will be watching early iPhone performance closely to determine how much impact the non-WCDMA iPhone has on Cingular Wireless churn and growth metrics. This will be a key determinant of whether it is worth adding to their increasingly 3G-focused portfolios."




www.cellular-news.com/story/21513.php

 

yeah thats the one disapponitment.............no UMTS.............and this article is very correct.....the iPhone will have to struggle to compete

 

I haven't really followed much about this phone because I already have a 60gig mp3 player that displays pictures and don't need one that is also a phone. I heard someone say that the battery is not replaceable. Is that so?!

 

No, the battery is replaceable, you just have to promise Apple your first child, and refinance your mortgage to be able to afford it. And they're the only one's that can replace it...

~*Ash*~

 

The lack of 3G means I probably won't be getting an iPhone.

 

thats the one thing i dontlike about Apple portable products

 

One in Ten Consider Buying the Apple iPhone

A new ChangeWave survey has found that nearly one-in-ten respondents (9%) say they are likely to buy the Apple iPhone when the product becomes available (3% Very Likely; 6% Somewhat Likely).

Another 7% say they are likely to buy it for someone else. Four-in-five planning to buy the iPhone say it will likely replace their existing cell phone.

What is the most important reason given by likely buyers for switching to the Apple iPhone?

By a wide margin, the most exciting selling point for them is the iPhone's overall integration of iPod, phone, camera and email/Internet capability (34%). As one respondent puts it, "It's an all in one device with a big screen and fairly small size, and Apple normally does a great job with new innovative products."

The survey also asked respondents who aren't considering buying the iPhone why they weren't interested.

More than half (55%) said they have no need, but the key finding is that 28% cited the issue of price. A follow-up question revealed that if and when the cost of the iPhone were to come down from its proposed $500-$600 range to the $200-$300 range, there would be a double-digit surge in demand for the product.

To put these findings in context, in Apple's latest earnings conference call, CFO Tim Cook said, "The worldwide market for total cell phones is somewhere around 1 billion and our objective of getting 1% of it would yield 10 million units across the calendar year." The current findings provide strong evidence that 10 million units are very attainable for Apple in 2008 -- if the iPhone performs to consumer expectations.

"The issue for Apple won't be in meeting its iPhone sales goals. The survey shows that this will be relatively easy," said Tobin Smith, founder of ChangeWave Research. "The real issue will be whether Apple can keep up with consumer demand -- including making sure there are enough parts available to fulfill all of its iPhone orders -- while maintaining product integrity."

The impact on cellular service providers going forward could also be great. A total of 15% of respondents say they're likely to switch service providers in the next six months. When this group was asked who they plan to switch to, Cingular -- Apple's exclusive service provider partner for the U.S. -- surged 8-pts to its best visibility showing ever among planned switchers in a ChangeWave survey. Verizon, however, dropped 3-pts to its lowest reading in 18 months. Other major providers experienced declines as well.

A similar ripple effect is seen among cell phone manufacturers. The survey asked respondents who plan to buy a new cell phone in the next six months, which manufacturer they are likely to purchase it from. While Apple was cited by 6% of respondents, Motorola's share of planned buyers fell a whopping 9-pts.

While it's too early to project how much of Motorola's decline in planned purchases is directly attributable to the upcoming debut of the iPhone, it is clear from these results that the iPhone is a potential monster that Motorola and the rest of the cellular manufacturers are now going to have to reckon with.

The ChangeWave Alliance is a network of over 10,000 highly qualified business, technology, and medical professionals in leading companies of select industries--credentialed experts who spend their everyday lives working on the frontline of technological change.

A total of 1,938 members of the ChangeWave Alliance participated in this survey.


www.cellular-news.com/story/21874.php

 

Apple Seen Having Flexibility To Lower iPhone Prices

If the US$499 and US$599 price tags of Apple's new iPhone are giving you pause, you aren't alone.

A recent survey by ChangeWave Research, Rockville, Md., found that almost a third of people not interested in purchasing the sleek, touch-screen device blame high price.

While the expected price may not drop anytime soon, several analysts who have estimated the cost of making the iPhone say Apple has the flexibility to lower the price tag. Some of their estimates also suggest the company could generate a substantial profit on the product, scheduled for release in June.

One observer projects an iPhone gross margin as high as 49%, well ahead of the recent company average of 31.2%. And even the lower margin estimates suggest substantial profit from the sale of each device.

So far, Apple has not said whether less expensive models are in its plans. The company acknowledges privately that lower prices are possible over time, but has shown a determination in the past not to cut product prices too quickly. Apple also declines to discuss the gross margin it expects on the product.

Anticipation over the iPhone has run high since Apple Chief Executive Steve Jobs unveiled the device at the Macworld show in early January. Investors have been eager to know whether it represents a broad new product category for the company - and whether Apple will meet its goal of selling 10 million iPhones in 2008.

Many analysts believe this target of 1% of the cell phone market is achievable. But if price becomes a hurdle, the company appears to have room to move it lower, says Andrew Rassweiler, a senior analyst at the research firm iSuppli.

Rassweiler analyzed the components he expects to see in the phone and says the cost of making the $499 iPhone is $245.93 and the cost of the $599 iPhone is $280.83.

"I think if anything, we've been fairly conservative and maybe overestimated what's (needed) in the (phone)," he says.

There does appear to be "enough wiggle room in the design of the phone," agrees Richard Doherty, research director of Envisoneering Group, a Seaford, N.Y., research firm.

Given Apple's ability to negotiate component contracts with suppliers, the phone could cost even $100 less than the iSuppli estimate, says Doherty, who predicts Apple will roll out lower-priced models within 18 months.

The phone's price also could see reductions from AT&T's Cingular, which has an exclusive distribution deal in the USA. At Macworld, Apple said the iPhone's present price would require a two-year service contract. But the company now insists the contract details have not been announced, and Cingular spokesman Mark Siegel says his company is not yet ready to disclose its pricing plans. The reticence suggests Cingular may have special offers for people who sign up for various service offerings.

In addition, other carriers will push rival phones to keep Cingular from getting a traffic boost from the iPhone, says Rob Enderle, principal analyst at the Enderle Group, a San Jose research firm.

Samsung Electronics and LG Electronics already have announced touch-screen models, and speculation surfaced this week that Microsoft may be interested in testing phone technology for its Zune music player. As a result, Enderle says there may be "some price erosion" in the iPhone.

"I would not be surprised to see the price get lowered" whether by Apple or Cingular, says Jonathan Hoopes, an analyst at ThinkEquity Partners who doesn't own Apple shares and whose firm doesn't conduct banking for the company.

Debate On Margins

But some analysts are less convinced, and they question just how much margin Apple has priced in the product. According to iSuppli's component estimate, the iPhones presently come with gross margins ranging from 46.9% to 49.3%, says Rassweiler.

This is well above Apple's average. In the fiscal first quarter ended in December, for instance, Apple reported a company wide gross margin of 31.2%, and analysts say its Macintosh computers and iPods sell with lower gross margins of about 25%. Software, services and peripherals help bring up the total.

Apple declined to comment on the cost breakdown, as well as the company's margins on computers and iPods.

Not surprisingly, the big difference between the iPod, Macintosh and iPhone margins has some analysts questioning the iSuppli breakdown.

Andy Hargreaves, an analyst at Pacific Crest Securities, says he anticipates the iPhone gross margin to be 20% to 25% - not that much different from the Macintosh margin. As Apple gets more efficient at producing the phone, and as negotiations with component suppliers bring volume discounts, the margin will rise, but not right away, says Hargreaves, who owns Apple stock but whose firm doesn't conduct banking business for the company.

John Jacobs, director of notebook research at DisplaySearch, an Austin, Texas, research firm focused on flat panel displays, also takes exception. The iSuppli breakdown didn't include an LCD screen with enough resolution or touch-screen technology responsive to satisfy Apple, Jacobs says. Both add cost.

DisplaySearch estimates the cost of $499 iPhone to be more than $300, suggesting a gross margin with a percentage in the mid-30s. Apple could eventually produce a lower cost phone, but not for some time, Jacobs says.

"I see them staying at the high end for at least quite some time," Jacobs said.

If so, the strategy would closely mirror the way Apple has marketed the iPod. As new generations of iPods came out, Apple often added more memory and new features to high-end models, but held their price steady. After several years, it began introducing lower-priced models.

www.cellular-news.com/story/21951.php

 

If I knew that the iPhone was coming out in June, I would have waited to renew my contract then instead of cancelling it and switching to Verizon....but verizon does have better service.