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The iPhone is helping AT&T while hurting the phone company's competition

Even though the iPhone does not launch for 11 days, the hype surrounding the latest Apple gadget continues to explode.  More than 64 percent of American users and 56 percent of British mobile phone users have at least heard of the iPhone. 

While the iPhone will be an expensive product -- priced at $499 and $599 for the 4GB and 8GB model respectively-- and users will have to sign an exclusive contract with AT&T, many consumers seem unfazed.  According to a study done by M:Metrics, almost 1 in 10 mobile phone users in the United States have "a strong interest" in purchasing an iPhone.  Of the 11,064 people polled for the study, 67 percent are subscribers of a service besides AT&T. 

Further research suggests that as many as 19 million Americans are interested in purchasing an iPhone.

"This is an early indication that AT&T's strategy to use the device to lure customers from competitors could play off," said Mark Donovan, M:Metrics senior analyst.

Analysts also expect AT&T iPhone users will spend an additional $20 per month on data service charges that average AT&T subscribers do not use.

Apple and AT&T have an exclusive agreement for at five years, meaning people wanting the iPhone will be forced to use AT&T.  Analysts expect T-Mobile and Sprint Nextel to be hurt most by the deal.

Apple plans to have up to 3 million iPhones for the scheduled launch on June 29.



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The i hype...
By daftrok on 6/18/2007 3:59:27 AM , Rating: 5
Apple has always had an amazing marketing strategy: Half truths. Saying that the iPod was revolutionary in the media player sense. A Half truth. Archos was revolutionary in the media sense, being the first mp3 player to have a built in hard drive. The iPod was revolutionary only because so many consumers bought it. If all the mp3 playing companies had the funding and the balls to put their product out there and say: "hey this sounds awesome has a hard drive is affordable and cheaper than anything else out there" then Creative would be the revolutionary player. The iPod was overrated in the beginning and they sould over 100 million in the hype. The iPhone will be no different. The only reason people want it is for the same reason people want an iPod: hype. And hype drives the average consumer. Any tech geek out there knows that Apple is a nice company with decent products but is just too pricy for what it offers. Some techys say its worth the extra dough and want to support it, some techys say it isn't. All I know is that the only thing the iPhone has going for itself is the UI, which can be easily copied into any other smart phone. The iPhone is not revolutionary in the media sense, but revolutionary in the hype sense.




RE: The i hype...
By FITCamaro on 6/18/2007 6:58:06 AM , Rating: 2
Pretty much.

Buying Apple's crap has become a status symbol the same as driving around in a huge SUV you don't need has.


RE: The i hype...
By crystal clear on 6/18/2007 7:37:41 AM , Rating: 3
For school kids.

The timing is right.

Obviousily "Back to School" buying season !


RE: The i hype...
By ToeCutter on 6/18/2007 7:33:26 PM , Rating: 2
quote:
Buying Apple's crap has become a status symbol the same as driving around in a huge SUV you don't need has.


I ask this with ZERO sarcasm, troll-intent, whatever:

Have you ever used an Apple product?

For that matter, who here HAS used an Apple product and NOT been satisfied, or *gasp* happy with it?

I've been working in IT for nearly 15 years, gone thru several generations of MS certs. I'm not gunning for a pissing contest, I'm simply trying to provide some context for the following comments.

That said, I've only recently become an Mac user. I found a ridiculous deal on a MacBook at Circuit City and purchased it after carefully researching Boot Camp, as I intended to use it strictly as a Windows PC. From that perspective, it was cheap, and well-equipped for my needs.

After a bit of exposure to Mac OS X, I found myself using Mac OS X more and more, until I finally became comfortable with the notion that Mac OS X offered distinct benefits over Windows.

Six months later, I have VMware Fusion Beta 4 installed and rarely find myself using Windows. Not because I think I'm Justin-Long-cool or in any way leet, but it simply offers everything I need from a notebook. The value Windows once had is now greatly diminished.

Even in a technical environment (I spend alot of time configuring virtual environments with enterprise storage), it just works.

Many of my colleagues are surprised, even suspicious, of my "Mac status", even though I've never seen myself as the stereotyped Mac user. I still wear polos with dockers, and occaisionally even a dress shirt with tie. And I ALWAYS wear socks!

If Apple has done anything I regret, it's painting Mac users as bunch of self-centered, elitist, non-conformists beatniks. While I dont speak for every Mac users, I resent the stereotype and have never tried to exude that image.

(Although, I do drive a shiny new Scion xB, so that probably doesn't help my image much ;-)

Summary: Don't believe the hype, try a Mac. You might even like it after a while...


RE: The i hype...
By OblivionMage on 6/18/2007 8:57:03 PM , Rating: 2
I tried a mac and hated it...


RE: The i hype...
By Ralph The Magician on 6/18/2007 10:17:35 AM , Rating: 2
So, it's never been done before and everyone is going to rush out and copy it, but that's not revolutionary. What is it then?


RE: The i hype...
By michael2k on 6/18/2007 2:15:02 PM , Rating: 2
You bring up the Archos and you think the iPod WASN'T revolutionary?

A comparison then.
October 2001, iPod vs Archos:
http://www.rockbox.org/playerhistory/
Firewire vs USB1.1 (12mb/s vs 1mb/s)
184g vs 340g (twice as heavy, twice as big)
5 buttons vs 9 buttons (much simpler UI on the iPod)
32mb ram vs 2mb ram (faster browse, faster response, longer battery life on iPod)
Integrated LiOn vs 4AA (10 hours vs 'up to 10 hours')

At the time I bought the 2001 iPod and got easily 12 hours with it.

You think the iPod sold 100m based solely on hype? Do you also think Microsoft sold millions of copies of Office or Windows based on hype? Or that the PS2 sold millions of units based solely on hype?

The iPhone may sell hundreds or thousands based on hype, but if the device is truly wonderful, it will sell itself.


RE: The i hype...
By akugami on 6/18/2007 4:51:32 PM , Rating: 2
I completely disagree about the iPods. Their revolutionary feature wasn't marketing or hype. It was an easy to use interface and a pleasing design. The things Apple has always been good at. Apple has won numerous industry design awards for their products and the basics of their GUI is what MS copied. In the iPod the easy to use interface coupled with the scroll wheel made it years ahead of the competition in terms of having an easy to use GUI coupled with an easy to use control system. It's only been in the last few years that other companies have caught up in the ease of use department.

While Apple's marketing is always half truths, whose isn't? That's why it's called marketing. Hype up the good stuff, gloss over the bad stuff, make implications about things you can do or are good about your products without ever really saying it.

So has hype carried the iPod? Absolutely. But it was a darned good product that helped make it a successful product before hype carried it to the 100 million and beyond mark. Hype can help carry a product but I would doubt it helped the iPod until after it already became a hit.

Let's not forget that people were buying the once Mac exclusive iPod and hacking software to make it work on PC's before Apple got a bright idea and released it for both PC's and Mac. Techies helped make the iPod popular and other techies are now slamming the iPod and saying it was built exclusively on hype. Let that sink in.


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