Ok, Friday the iPhone went on sale. Apple stores around the country had lines overnight as eager gadget junkies waiting to get the latest and greatest shiny toy from the fine folks in Cupertino, CA. According to all accounts so far [David Pogue] [Walt Mossberg] [Robert Scoble] the iPhone is a fantastic piece of hardware that shows us exactly why Apple always gets so much hype for a new product. With minor quibbles aside (AT&T's EDGE Network) it appears to be a piece of hardware that really delivers on its promises.
Do I have one? No. Do I want one? Hell yes. Will I get one? In a few years.
Ultimately, Apple kills itself for me on the same point as always: Price. I can't reasonably justify spending $400 - $600 on a phone. Add in accessories, activation, and calling plan and you suddenly have a small limited-function device that costs as much as a fully-featured personal computer.
- It's an iPod!
Yes, it's an iPod, but a pretty limited one. It has as much space as an iPod Nano, which costs a fraction of the price. (4GB Nano: $150)
- It's a phone!
Mmm-hmm... My phone cost me $50 after service rebates. It places/receives calls. Does text messaging. It can even take photos and video.
- It's a revolutionary Internet communication device!
Ok Steve, you got me there. Outside the world of Palm Treos and Blackberry handhelds, this is new territory. On this point I'll give the iPhone a few serious kudos. Any handheld device that handles Internet and email in any serious way also tends to be pretty expensive. I feel this is where they are able to justify a large portion of their price.
The iPhone isn't really a phone. Sure you can do the whole phone "thing" with one, but that's just a minor point on the overall bullet list of features Apple is touting. The iPhone really represents one of the first serious efforts at a portable communications device that isn't hobbled by poorly conceived notions of how a user should interact with the device.
On top of that, it's also a platform. If the iPhone manages to be a genuine success, which I think it will if the price on hardware drops to something more reasonable, my bet is that we'll see Apple become the early dominant player in the true pocket computer revolution. My hope though is that they don't make the same mistakes with this fledgling market that they did with the personal computer.
But in the end, despite its promise, despite its current capabilities, is this another case of marketing buzz causing people's common sense to shut down and take a holiday? A lot of coverage has been given comparing total cost of ownership for the phone with other similar devices (Blackberry, Treo etc.) and the iPhone is a ridiculously expensive proposition. On top of price, you also have to contend with the fact that this is a first generation Apple device. History shows us that the first gen of any Apple gizmo comes plagued with little problems here or there, and that just waiting one or two generations will result in a much better device with improved features and a reduced price over the original. Compare current iPod prices with prices when the device launched, and then look at how quickly it improved from generation to generation.
On Friday, the folks who bought the iPhone were the classic early-adopters. The folks that will plop down a crazy amount of money for whatever is the latest/greatest. But the question now is that all of the extremely excited folks have their iPhone, how will the demand be from now on? Will all of the marketing and press hype and the glitz and glamour of a brand new Apple product overcome people's common sense? The iPhone really represents a luxury item, delivering functionality that very few people honestly need in their lives. Will the ooh and ahh trump the concern over bank balance? Time will tell on that one.
Me? I'll have one in 1 year 8 months when my current Verizon contract runs out.
What can I say? I'm a sucker for shiny gadgets. At least by then there may be a second generation device out and the price might have dropped.
I hope...