Jun 27, 2007

Apple iphone

I have this habit of tuning in to local radio stations while driving. Yesterday, most of the stations were going after the Apple "iphone" launch scheduled on June 29, 2007 at 6 PM local time. Since I am out of touch with TV these days, this one caught me by surprise. In the ensuing drive of about 30 mins, I came to know all that I wanted to know.I assume most of you would have already heard or read about this iphone launch.

For the uninitiated, Apple is launching a new cell phone which combines the functionality of an ipod, Internet browsing, voice messaging and so many other features. As always, this launch has provided an opportunity for analysts, critics and specialists in the cell phone industry to deliver their thoughts and forecasts. Apple has tied up with AT & T wireless for launching this new phone in the US. They plan to hit Europe in the later part of 2007. Apple built this phone based on their mega success product, ipod. I believe ipod has millions ( I think it's around 200-300 million) of owners in the US alone and most of them fell for it because of its sleekness.very good user interface and very good sound quality. The plan is available only thru AT & T, that means only to the existing 140 million plus existing customer base of AT & T. The new subscribers ( assuming they have service from other providers) will have to break their existing contract and sign up for iphone. The total costs are around $400 - $600 for a 2 year contract with the monthly subscription charges of around $60. In a country whose people quickly embrace top notch tech products & solutions, this kind of highly priced offers might gain good acceptance. Or Apple might make some price corrections based on demand and supply.

This made me recollect the launch of Reliance Infocomm's Cell phone launch in India. Just after launching, they made a presentation at our office to attract corporate subscriptions. They had screwed up their offerings so much that we had difficulty comprehending the plans and total subscription costs. The public feedback in the papers was also in the similar lines. Then the sons of Dhirubai Ambani made a bold decision to temporarily withdraw the offers. Shortly thereafter, they came back with marketing winning offers which offered more choices of cell phones, talk time plans and some customization options. Gradually, Reliance cell phone gained popularity and was able to create an impact in the market. Today Reliance Infocomm offers so many features that are absent in the US cell phone services market.

Going back to the talk on the radio, one observer mentioned life of the first few cell phones launched were approximately 5 years while the current ones have life of just 13-18 months. One drawback I heard about Apple iphone - If the battery goes dead ( expected after 12-14 months), it has to be taken to the dealer and there will be some special charge!!!

Let's wait & see how iphone takes off in the market. If you have any good information about this one, let me know.

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