THE LONG VIEW: Why the iPhone will fail
Posted on: Sunday, 3rd June 2007You’ve got to give it to Apple, they sure do know how to whip up a media frenzy. Actually, these days they don’t really have to do much – the “Cult of Apple” takes care of itself. Which is why everyone is eagerly waiting the release of the iPhone.
June 16 is the rumoured release date. Or is it June 20? There are so many rumours swirling that it’s hard to know which one is the least inaccurate, but it’s safe to say that sometime in June Apple will release the iPhone. And then thousands if not millions around the world will have a case of gadget-envy, particularly here in Asia where we won’t see it until 2008. The media, meanwhile, will be writing rave reviews, particularly those that think it might lead to a “review model” they can use themselves.
But then – and here’s my prediction part – something strange will happen. In a week or two the fuss will fade and people will start to realise an important point: it’s just a phone, and not a particularly “smart” one at that. And then people will start to find flaws in it, because let’s face it, version 1.0 of anything is going to have flaws, particularly something loaded with sensitive radios and electronics like a mobile phone.
But wait, it gets worse. People will start to question how much they paid for their flawed phone. There’s a lot of stuff I would like to buy right now for US$499 (the minimum price being floated) and I’m sure all of the people that handed over their hard-earned cash for an iPhone will be thinking the same thing. And they’ll also start to question the fact that they were forced to sign an exclusive deal with one operator, AT&T, for the next 12 months. So when the customer support lines are jammed with users complaining about their iPhone, they’ll just have to wait – no switching over to another operator, as they’re not allowed to use the Apple device (AT&T has a five-year exclusive contract in the US).
Anyway, that’s my prediction and I felt like getting it in early – I don’t want to be seen jumping on bandwagons after everyone else suddenly realises that the iPhone is a flop. It’s not the end of the rant, however.
I think there are a bunch of other reasons the iPhone will fail as well, at least in the version being touted to date. One of the main ones is that it will only work on GPRS/EDGE networks, not 3G. Let’s face it, one of the main features of “smart” phones is their ability to link to the Internet. Yet GPRS has failed to inspire the majority of users to go online with their mobile phones. The iPhone does have Wi-Fi, but that’s still spotty coverage compared to cellular.
Then there’s the fact that it’s a closed environment – no third-party apps invited to play, at least initially. One of the things that my friends who are avid smart phone users appreciate is the wealth of small apps that they can download on their phone, whether it’s for calculating the bets for a round of golf or for observing the constellations in the night sky. Or even for adding VoIP clients, so no cheap calls even if you do find a Wi-Fi hotspot.
And finally, there’s the competition. The likes of Nokia, Motorola, Samsung, Sony Ericsson and LG won’t be idle bystanders as Apple tries to do to the mobile phone market what it did to MP3 players with the iPod. Building a mobile phone isn’t rocket science – it’s much more complex than that. And the traditional guys have been doing it for the best part of 20 years.
Steve Jobs recently remarked that the iPhone is “five years ahead of any other mobile phone”. To me, that smacks of arrogance and dangerously underestimates the opposition. These guys are churning out scores of new models every six months, in a multitude of formats and for every market segment. What they offer in the next quarter could likely surprise everyone, including Jobs, while what they offer now is arguably more than the iPhone today (the Nokia N95 springs to mind).
Apple, on the other hand, is struggling with the resources to produce this one model. It has already admitted to delaying its Leopard OS X operating system so that it could get the iPhone out the door. If and when it comes to Asia, you can guarantee that the region’s far more selective consumers will want to choose from more than a single model. And it’s in this regard, the ability to continue rolling out a wide selection of new models regularly, that Nokia, Motorola and the gang are likely “five years ahead” of any newcomer.
All of which is not to suggest that Apple shouldn’t be applauded for trying to enter the mobile arena. And I’m not suggesting that in future it won’t come out with a successful iPhone, particularly if it opens up to third-party software, embraces 3G and ditches the idea of “exclusive” carrier agreements when it comes to Asia. But iPhone version 1.0, in my opinion, will be a flop.
– Geoff Long




Apple has since confirmed that the release date for the iPhone is June 29. It will still flop though. -geoff long
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LikeApple has taken another step forward, long before anyone else. I think it's going to be a tremendous success (although I do agree about the concerns of a rough start...that could very well be. iPod launched roughly, too. Many great products do.) As far as third party software, Jobs has said he REALLY wants to incorporate those apps and that the iPhone will, at some point, be open to those apps, but they must be careful. Which makes a ton of sense. Apple tried this with "widgets" if you aren't aware. They check to make sure they are kosher, then they post them on their site. The same kind of thing will be available to iPhone users. I don't think you thought this all the way through.
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LikeIt is dangerous to make this type of prediction when you are talking about Apple and Steve Jobs. The five years Jobs is refering to is "software." I have a revelation for Geoff, those phone companies you list are not good with software. They can crank out phones, all sorts of them, in every candy and cream color, but software will make the Apple iphone a major competitor. I predict you will be amazed at how successful the iphone will be.
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Like2 reasons why you are 99.999% wrong about your prediction that the iPhone will fail: 1) Apple + Google = many great possibilities 2) Apple has been no doubt testing the CRAP out of this for some time now. BTW, I bought a Mackbook last year on the day they were released and it is perfectly reliable in every way.
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LikeI think the article is accurate in some respects. At least for iPhone 1.0 The Asia (or at least Malaysia) consumer tech crowd are bombarded with gazillions of choices when it comes to mobile devices. Malaysians might be intrigued enough by the phone to buy it (provided local telcos or specialised Mac shops think that there would be enough of a demand in the first place, to bring the device in). There will be the loyal Mac fans who might snap it up(that's Mac fanaticism for you or maybe its cos "the iPhone will look soooooo good with my new PowerBook!!!") And then there will be the serial mobile phone dumpers -curious gadget enthusiasts who will experiment the iPhone for a few weeks, find the areas that it is lacking and proceed to dump it to get the latest new device after that. If the iPhone is to be used anything AT ALL like how Pocket PCs or PDAs or smartphones are used (and that is arguable) - it will need to be able to sync more than just bookmarks very, very well and with the minimum hassle (ie. contacts, emails, docs, text messages etc) with the desktop. And not just the Apple desktop but Windows desktops if its EVER to reach the kind of numbers that Jobs hopes for. Unless consumers dont mind having an over-glorified mobile phone to use just for voice functions, cos the last time I looked also, mobile data usage in the country aint all that great.
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LikeAnd where is that expandable memory card slot???
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