Now That The Novelty's Worn Off...

By Ed Oswald, BetaNews

January 12, 2007, 2:55 PM

It has been a few days since Steve Jobs took the lid off the iPhone. Now that Apple's stock price has come back to earth, and the millions of the Mac faithful have had their chance to drool over the highly anticipated device, is it really that great?

PERSPECTIVE Everyone saw it coming. Following the disaster of the Motorola iTunes phone, it was all but a certainty that Apple would come back and prove that it could indeed produce a phone with the beauty of the iPod.

Months and months of rumors were finally confirmed in Tuesday's announcements. For myself, the phone was everything I could have possibly wanted in an Apple "smartphone" and more. Even my Microsoft-centric friends marveled at the device's simplicity and innovation.

One even said the iPhone set the bar so high for Microsoft that it might take years for the company to catch up, something I don't necessarily disagree with.

But it became one gigantic disappointment not soon after. And I think I speak for several others with what I'm about to write. It's not the device itself so much as the way that Apple has decided to go with it.

First off is Apple's deal with Cingular. I understand some of Jobs' reasoning in initially offering the device through a single carrier, but a multi-year deal? It seems like the folks at Cingular -- or come Monday, AT&T -- took the ever-confident CEO for a ride.

Why hamstring yourself like that? It seems almost odd to me. Apple picks a global standard, GSM, and then seems to forget the 25 million or so consumers here in the states that are also GSM customers, and possibly equally eager to get their hands on the device.

Is visual voicemail that hard to implement? I just don't buy it. The stuff about needing a superior network? Nonsense. Even the Windows Treo only had a six-month exclusivity period. Cingular's EDGE network is no better than say, T-Mobile's.

Steve, if you want to change the mobile phone world, you need to work with everybody.

What happens to people like me, who are happy with their current provider (T-Mobile)? I am essentially shut out. And I'm not paying $800+USD for a phone I'm not even sure I can unlock, and that in the end would be partially working. I am sincerely hoping that Jobs doesn't make the same mistake elsewhere. Because if he expects to sell 10 million phones in the first year, you aren't going to do it with exclusive contracts.

That brings me to the second problem: price. Like the Macintoshes of yore, this thing is significantly more expensive than other devices in its category. At $499 for a two-year contract, it puts the iPhone at the top of the heap.

A couple of years ago, such a price point for a smartphone wouldn't be too far-fetched. But in today's market, that price is way too high. Apple has always had a bad habit of putting prices at a premium, and I'm afraid this is a bit too high for all but the most avid of Apple supporters.

Finally, the closed nature of the device bothers me as well. Being based on Mac OS X, this should have a similar platform for developers to create programs on. But no, no, no says Jobs.

"You don't want your phone to be an open platform. You need it to work when you need it to work. Cingular doesn't want to see their West Coast network go down because some application messed up," he told Steven Levy of Newsweek.

Again, Jobs shows his naivete in mobile phones. Name me one application on the Windows Mobile or Palm platforms that has ever brought down somebody's network, much less degrade service. That's a cop-out.

It's like Jobs is making the same mistakes he made initially with the Macintosh with the iPhone. I'm not disagreeing that this is a game-changing device, because in many ways it is. But Jobs and crew are just not starting off on the right foot here, and they're giving others (think Microsoft) time to come in and steal Apple's thunder once again.

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By alphatrigon

posted Jan 16, 2007 - 7:55 PM

I'm a pro MS/Windows person and don't much like anything Apple/Mac...too pretentious and arrogant.

That said, you phone people are weird :D.

Regardless of the side you take, phone people will buy these over priced phones and services just to make people take notice.

You tell a non computer centric person to buy a Blackberry, when they barely know how to use a computer, and they'll do it.

phoneys...bad play on words I know :p

Score: 0

By nabicat

edited Jan 16, 2007 - 11:30 AM

I think the problem most people are having lies more in the marketing than in the product. Steve Jobs is pandering to the shareholders/board with his launch presentation.

This is a flagship product, with loads of bling appeal. So normally you would sell high, ship few, and keep the market wanting. (restricted supply)

For Cingular its a great deal as well. Pay a higher price for the product to maintain an exclusive contract and in so doing, garner a bit of the "cream" off of your competitor's higher-revenue clients as they churn, just to get the phone. Good market positioning!

The only fly in the ointment is the ridiculous assertion that they will sell 10million of these things to Cingular customers. This is the incongruous part of the message and the bit aimed at shareholders. That said, even with the lower volume that they will end up with, the premium margins they will enjoy will still make shareholders happy.

My personal beef is the locking down of the OSX derived platform to 3rd party developers. It limits the appeal of a phone with this much capability. Especially being the owner of both UIQ (A1000) and Windows 2003 (iPaq 6315) PDA phones where this is the norm. This could ultimately be the big hurt on the unit's appeal, by strangling innovation and preventing grassroots development of new capabilities.

Score: 0

By bitsiphon

edited Jan 15, 2007 - 3:57 PM

Amusing indeed...
Wanna bet to get the full functionality from the phone it costs you a $100 US/month (the cool factor gets eaten alive by the recurring cost). Oh and you still have to pay for every song you download to the phone. No doubt it is ccol leap technologically I will certainly look at it when it is released.
btw lets all get together on July 1st and see how far behind Cingular is with the upgrades "neccessary" for the complete user experience.

Score: 0

By phenomnaruto

posted Jan 15, 2007 - 4:41 PM

its kinda stupid to compare the Zune with the Iphone seeing as the Iphone is a PHONE and costs 2wice as much as the zune, which has greater capacity and oh yea ... IS A MP3 PLAYER ... some of the posters on betanews are rediculous

Score: 0

By Silentmaster101

posted Jan 16, 2007 - 8:00 AM

so is your spelling

Score: 0

By alpha4test

edited Jan 15, 2007 - 4:41 PM

Being a Linux-Mac-Win user i just don't get you...
What works, works, and that's it.
In the world gsm is bigger and does the job in its segment but stil outdated, 3,5 G as over 3,6 mbts speed for now, videophone is a reality (at least in europe), voip over 3g is on here to, iphone is a cool gadjet( ...if they solve the name issue), but it's just another phone... a new look, a great look, but closed source, just as many other phones... And not having 3,5 g... no dual camera... its just one more phone, a great looking one, but just thatand besides the look It brings nothing new or god at all.
as a multi-task multi porpuse device a PDA is still the best option.
If you want the looks and only need a phone with music is for shure a good option.
but if you plan to use apps, surf the web, take advantege of flat rates in internet (as i do, myself have 10GB a month for 29,99€ and happy hour from 01h00 to 07h00 over 3G) then u should get a real option for the today's world, such a 3g/3,5 G PDA. why stay with 220 kbts if we can get 3.6 Mbts...
And this is only part of the issue, coz the network locking, proprietary software, and so on, it only inprisions people, that after spending the money on the system got to go with the flow...
Then again the fact of apple's phone being closing deals for exclusivity...and for so long periods.. that's just plain stupid.
Were is the think globally, act locally?
But botton line is:
Apple's phone its just a GREAT LOOKING phone with some neat gui and new interface, but behind all that is just like the average phone in the market.
i'll be keeping my 2 cameras 3G qtek PDA and wait for the next 4G enabled PDA, but spendind money on the apple's phone, thank's but the technology behind it's outdated, big time!

Score: 0

By Dev3lop3

posted Jan 15, 2007 - 12:58 PM

Very Amusing...

...your jealous rants have completely betrayed your true feelings... you know who you are.

Just get over yourself and accept the fact that Apple has made the phone that everyone wants over anything else. (and if you disagree just to disagree, then have fun with your BlackJack or enV..hahaha)

Score: 0

By tappa113

posted Jan 15, 2007 - 12:22 PM

How quick we all take a childish stance when we know we cant easily have something wonderful. We knock it down and try to make tiny issues huge faults.

"Steve, if you want to change the mobile phone world, you need to work with everybody."
-I have to believe that Jobs knows exactly where his business model is headed. Going with Cingular/AT&T had to make economic or strategic sense to the long-range plan. A plan that we all know absolutely nothing about.

"What happens to people like me, who are happy with their current provider (T-Mobile)? I am essentially shut out"
- If you want the phone then its simple… stop whining and switch to Cingular/AT&T. No one is asking you to sell your home and move overseas. Most cell phone numbers are transferable to other carriers these days.

"they're giving others (think Microsoft) time to come in and steal Apple's thunder once again."
- Yeah well like that’s new. :)

Why are we digging so hard to knock this thing???

Score: 0

By mshulman

posted Jan 15, 2007 - 11:52 AM

While it might be nice to have all these things bundled in one, just think about what you lose if any one function breaks?

Not to mention, your friend, wife..etc can't borrow your ipod, because now its your phone too.

There is still something to be said for keeping devices separate.

Score: 0

By mosborne76

edited Jan 14, 2007 - 8:00 PM

I agree that a multi-year exclusivity is a bit much in today's day and age but this device is 100% game changing. Doesn't matter the price, doesn't matter the network, this will be a huge success. People WANT devices that look and feel this way and no one from Nokia, Palm, RIM, anywhere has delivered. Why hasn't Sony done something like this? Why didn't Palm or RIM get their crap together and design a gorgeous device that HAS all the stuff you're saying Apple needs here. They just didn't. They never do. It astounds me that they haven't figured that out yet.

Score: 0

By Hollywood__

posted Jan 14, 2007 - 6:13 PM

Get a BlackJack, it does everything.

Score: 0

By Dev3lop3

posted Jan 15, 2007 - 12:53 PM

You are joking right?

yeah, everything halfass maybe...

Score: 0

By mw

edited Jan 14, 2007 - 4:51 PM

Will the iphone have the same problems as the ipod have? like that small problem of requiring itunes to be able to load it with music files and a sealed case so you can´t change battery... (or have they somehow created a iMagicBattery that never breaks or need recharging when you are out in the woods?) for a person like me, there is no way im going to pay that much for a mobilephone where i can´t even change battery. (i like to have a spare battery with me for my mobilephones, but i could be wrong, maybe its not a mobilephone for people that needs to be able to use it 24/7).

Will the screen on a iphone survive everyday use? why im wondering is that i think a mobile phone should be able to survive a drop from at least 1 meter to the ground or survive that someone accidently sits one the phone, dropped in snow and so on... without breaking (phones are made to be used and i now that some manufacturers are a lot better than others when it comes to build phones that survive accidents). the reason that im a bit worried about the screen on iPhone is that its a large touch display and that touch displays are usally a lot softer than a normal display where manufacturers easily can put a protective extra layer of plastic on top of the screen for protection and make that layer of plastic easy to change like on many SonyEricson and Nokia phones.

(i now that my question if it will survive everyday use or not, will be answered some time after they start selling it, and that time will tell if its a good phone or not.)

/MW

Score: 0

By Metaph

edited Jan 14, 2007 - 1:14 PM

Well,

I have watched and read about the iTunes media ultrahype with much amusement. While the US may have superior technological infrastructure in most tech fields than say Europe and Asia, the mobile phone industry there seems be eons behind. While a tech geek might espouse the technical superiority of CDMA 2x tech over GSM, its GSM (with 3G) that is winning the war, if it hasn't already. Most of the US is still locked into the mobile equivalent of the middle ages with CDMA and these unbelievable carrier-based plans. At least us GSM users in Europe and Asia can change handsets whenever we please, and carriers too, and take the ultra hip GSM phone with us whereever we travel (except the USofAges). Also, The variety of features on umpteen models of smartphones already available for a 3rd of the price Apple wants to sell their overhyped (as usual) gadget for in our markets, I will be very surprised if this ploy for Jobs and his spinmeisters will pay off in the rest of the world, which BTW is where all the new customers are. 600 smackaroos for an 8GB model! Fuhgedabbadit! Plus its closed technology, which is plain stupid, and not to mention arrogant! With convergence closing in fast, it would daft to expect people already enjoying open source alphabet-soup of compatible technologies on their phones, be it music, video, sharing etc. etc., to have to bend to Apple's dictats, just coz the phone looks pretty. And I doubt they have discovered a completely new scratchless material for their touchscreen, unless the aliens gifted it to them (the Apple hordes, aka suckers, might just even believe that). Don't forget, the mobile phone is THE most abused and overused tech device today for people who have one (er, pretty much half the planet?)!

I wonder if this is the endgame for Apple, if this is the best they could pull out of their worn-out-overpriced hat...

Score: 0

By robmanic44

posted Jan 13, 2007 - 6:25 PM

I currently run a Treo 650 through Verizon and I don't the pluses of I-Phone are worth the hassle.

Score: 0

By pauliebklyn

posted Jan 13, 2007 - 2:28 PM

I can't wait till till my phone can do my laundry ;)

Score: 0

By smartlikestreetcar

edited Jan 13, 2007 - 8:40 AM

If you listened to the keynote, Apple went with Cingular because they needed a company that would dramatically alter their cellular protocols to make the iPhone all it could be. What company would be willing to do this without some form of exclusivity, so they could cover their initial investment.

As for comments that other cell phone manufacturers now have six months to catch up, that's just ridiculous. After watching Apple exec Phil Schiller demonstrate the iPhone on CBS, I'm convinced that this phone really is going to change everything. It will take other companies two and three years to catch up.

Score: 0

By Desides

posted Jan 13, 2007 - 10:39 AM

Being the largest cellular carrier in the US didn't hurt, either.

58 million users is quite a target audience.

Score: 0

By Aires

edited Jan 15, 2007 - 11:48 AM

EDIT I:

I decided to delete what I wrote after I read the blog here: http://gracefulflavor.ne...ettles-iphone-aftermath/ The guy puts it so much better than I can.

EDIT II:

Another good article: http://www.bloomberg.com...VKWbMAv0&refer=home

Score: 0

By Natrunner

posted Jan 13, 2007 - 4:05 AM

In my opinion, it is too little too late just like Zune and Microsoft. Both these companies are engaged in trench warfare with a dynamic market that they are beginning to understand less and less. The hardcore Apple fans will buy the product as always. But, the iPhone will not capture the market as the iPod did. Microsoft and Apple are getting black eyes lately.

Score: 0

By Desides

posted Jan 12, 2007 - 11:46 PM

So, Betanews doesn't like the iPhone.

Why am I not surprised?

Score: 0

By Floodland

posted Jan 15, 2007 - 9:04 PM

I was thinking exactly the same... Maybe becau$e Microsoft cannot steal market there?
Some arguments are valid though: The tie with cingular is not good and GSM is one step behind. But I understand that if Apple release a 3G phone in june, what can they announce in August? They need to feed the stock keepers...

Score: 0

By dhjdhj

posted Jan 12, 2007 - 11:28 PM

well, there are ways to deal with this --- the locking system has been cracked and if you can't do it yourself, there are tons of websites that will unlock your phone for $25 or so.

Score: 0

By canv15

posted Jan 12, 2007 - 11:09 PM

I have a cingular 2125. really small, plays music,videos,email, syncs with exchange and the best think in the world. I can install/unistall programs. and I paid 50 bucks for it + a two year contract. I dont see a need for a 599 device that I know someone might rob me or lets say is raining and I get wet. goodbye phone.

Score: 0

By bugsnw

edited Jan 12, 2007 - 7:59 PM

There's another article I read today with posts that confirm what Jobs is saying about 3rd party Apps bringing individual service down. People end up with a Treo that won't call out or hangs or crashes all the time.

Not familiar with all sorts of glorified PDAs, I will give Jobs the benefit of the doubt. After all, they have done well with the iPod and the naysayers were out in full force on that intro as well.

I'm buying. It's an awesome phone, an awesome iPod video, and as a bonus, it has all sorts of other functionality.

Score: 0

By ds0934

posted Jan 12, 2007 - 7:54 PM

The problem Apple faces is the delay to market on the iPhone. Having unzipped their fly in front of the world, and THEN telling everyone it won't be out until June, very bad. They shouldn't have shown so much detail unless it was VERY close to release. That gives Samsung, Nokia, RIM, Ericsson, etc. 5+ months to crank out products ahead of the iPhone release.

Score: 0

By flake

posted Jan 13, 2007 - 1:42 PM

If they hadn't unzipped their own fly, the FCC would have unzipped it for them since all devices become public record.

Much better for them to have a real launch than have no market thunder via people finding out via the FCC website.

Score: 0

By ds0934

edited Jan 13, 2007 - 9:52 PM

True.

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By barkie19

edited Jan 12, 2007 - 7:13 PM

So, I priced out my iPod, my palm device (yes I still use one because I actually do time mgt) and my cell phone. Know what, it added up to more than an iPhone. When its time to upgrade, I'll actually save $.
Hmmmm

Score: 0

By compm375

posted Jan 14, 2007 - 1:43 AM

That sounds good in theory, but the iPhone most likely does not have the features and flexibility of your PDA or the capacity of your iPod.

Score: 0

By Grazer

posted Jan 15, 2007 - 4:34 PM

...and his iPod and PDA don't have to share a battery.

Score: 0

By Fickleflame

posted Jan 12, 2007 - 6:03 PM

You could be right, but you could also be very wrong. Only time will tell.

Score: 0

By Austin814

posted Jan 12, 2007 - 4:12 PM

Maybe Sony and Apple teamed up. So far the $599 iPhone is the only consumer electronic device that makes the Playstation 3 look like a good deal. Anyone who pays $499 or $599 for a ipod with a GSM chip inside is nuts.

Score: 0

By chirayu

posted Jan 12, 2007 - 6:41 PM

I agree!

Score: 0

By foxfyre

posted Jan 12, 2007 - 2:57 PM

I wish I could disagree.

Score: 0