I offer a slightly different look at the iPhone from analysts at strategyanalytics.net.
My article is translated, and since I am not a professional translator, I will ask, if possible, not to focus on its quality) If someone wishes to read the article in the original, it can be found on the website indicated above.
So,
Apple iPhone: minimal impact on mobile devices and service providers in the short term.In shortApple intends to make revolutionary changes in the wireless device industry with its elegant iPhone, with innovative touchscreens and radical user interfaces. However, there is little doubt that lovers of style and those obsessed with technical characteristics will be delighted with the innovative iPhone project, from the point of view of a communications provider, in order to succeed as a wireless multimedia device, the device must demonstrate the ability of uninterrupted message transfer and multimedia traffic. . To do this, the iPhone has to solve two key tasks, namely, user and technical perception of data entry using a touchscreen and the integration of complex short message properties with a radical user interface. From the point of view of the mobile phone vendor, the initial price of the iPhone means that it will not be a serious competitor to the existing leaders of the devices playing music. As soon as the iPhone will cost less than $ 300, the players from the Sony Ericsson Mobile Communications series will be hit.
AnalysisOn January 9, 2007, Apple unveiled its long-awaited iPhone, a device that Apple hopes will revolutionize the wireless device industry with its innovative touchscreen and radical user interfaces. There is no doubt that inspired by the best of the legendary iPod, lovers of style and those who are obsessed with technical characteristics will be delighted with the innovative iPhone project.
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The study has consistently identified a segment of buyers who want to buy an iPhone because of the legendary design. However, a commercial perspective outside this narrow segment will be extremely small due to its limitations to a single cellular provider and a price threshold that is closer to a personal computer than to most mobile phones.
From the seller’s point of view, in order to succeed as a wireless multimedia device, the iPhone must demonstrate its ability to send messages and multimedia traffic.To do this, the iPhone user interface will need the following:
- Providing a simple, intuitive and logical structure in all applications
- Justify user expectations of physical input performance capabilities?
- Immaculate performance of network services.
The simplicity of the iPhone screen is an advantage, but not as revolutionary as Apple represents.Apple undoubtedly has unparalleled skill in building user interfaces for devices and in integrating capabilities in ways that make them usable for mere mortals. This is what is missing in many mobile devices that play music.
Surveys of users of leading cellular devices with music, undertaken in Boston in December 2006, showed that mobile phone users are not thrilled when it comes to the convenience and ease of use of current offers.The first iPhone images show a screen that provides access to critical applications with a single click. This approach is very similar to the one in Palm Treo UI, which according to user surveys is rated as the easiest device to use.
Appendix 1 - Comparison of Palm Treo 700p and Apple iPhone Screens

However, the convenience of using the iPhone lies outside its screen.
Despite the fact that research has found that the iPod interface is perceived as highly intuitive, the tasks of the iPhone user interface are located deep inside the applications — in particular, everything related to messaging and networking.Multimedia players, such as iPods (whether music or video or both), are relatively simple devices, compared to mobile phones. As with all other mobile device developers, Apple faces the daunting task of combining a number of features that mobile phone buyers expect, from the camera and media player to messaging for complex applications, as well as features such as watches and event reminders. This problem has been faced by traditional suppliers of such devices for many years.
In “Strategy Analytics” believe that the lack of a physical keyboard on the iPhone will be the greatest disadvantage for people who are not fans of Apple.If an iPhone user cannot type and send SMS or e-mail, it is easy to enter the website address on the Internet or take another action while working on the network that is required when viewing, then this device is not a phone, but a media player (with Internet access, messaging, phone) and all secondary functions).
Apple announced that the iPhone will be presented a new technology, called "Multi-touch". For telecom operators, the success of Multi-touch is crucial, since sms and Web browsing services require intuitive text input.The principle of entering text into a touchscreen device without a stylus will be a serious challenge for Apple. Can Apple successfully squeeze a QWERTY keyboard into a touchscreen device with a 3.5-inch display? If so, how will the problems associated with size, volume and separation between letters be overcome? Would you use an extraordinary approach to automatic correction, etc.? If so, will users be able to recognize and accept these benefits immediately or will they be careful in the unusual properties of the device?
Moreover, the lack of tactile feedback often causes inconvenience to users when using the device’s touchscreen. In the opinion of consumers of the LG Chocolate device (having touch keys), this is very annoying to many users and potentially restricts the use of text services, such as messaging.Even without taking into account the topic of text entry, our experience shows that many potential buyers will be concerned about issues such as the fragility of such a large open screen.
Service integration is a new challenge for Apple.In addition, unlike its direct connection with the consumer in the case of the iPod, Apple is largely dependent on cooperation with the network of the operator Singular in distributing, advertising and providing services for its new device.
Also, the mobile operator certainly wants to influence the functions and services that the phone supports. This is probably a problem for Apple if the company wants to preserve the integrity of its audience of dedicated users who are used to a particular way of working with Apple products.
Price expectations of customers when buying electronics are different if users buy the device along with a service contract.It is also known that potential buyers view the value of mobile phones differently than other consumer electronics devices.
When the buyer is faced with a choice between a subsidized device, such as the Samsung Blackjack for $ 199 and an iPhone with prices starting at $ 499 for a 4-gigabyte device, the potential market, even for the base model, is likely to be limited.ConclusionIf there is no significant reduction in prices on the iPhone, then Apple will mainly compete with itself.Traditional mobile phone manufacturers do not compete with multimedia devices in this ultra-premium section of the market. Few MP3 devices are so expensive, Apple is currently competitive only among its own devices. The iPhone will be the choice for a small group of people intending to buy an iPod, but this group will not buy both devices, but will choose only one of them.
Since the iPhone will initially be sold exclusively through Singular, it will mainly compete with Sony Ericsson at $ 100–200 cheaper with similar products than the price of the current iPhone in the EDGE / W-CDMA market. Samsung, LG and Motorola are also direct competitors to the iPhone in the US with a price threshold of less than $ 300.
According to surveys of users in the United States found that device buyers in all segments are exclusively committed to their operator. Preferences based on ideas about the strength and reliability of the network will lead to the fact that many potential iPhone buyers will postpone its acquisition in anticipation of the potential launch of CDMA.
Based on this, we believe that in the conditions of the market for subsidized communications devices and loyal users to their suppliers in the US, making paying inflated prices for your communicator will be a daunting task for Apple.
Kevin Nolan,
STRATEGY ANALYTICS INSIGHT
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