Will Apple’s iPhone Push The Mobile Market?

People were skeptical when Apple announced the iPod way back in 2001 and even predicted just how the company would fall due to an overpriced MP3 player. But many people missed the fact that it was more than a MP3 player, it was style and it was a revolution. However, many knocked it, claiming it lacked sufficient storage capacity and other features. “The iPod will never take off and will kill Apple!” they yelled, but it was only a matter of time before the MP3 player market would be turned onto its head, spun around a little, then slapped in the face.

Fast forward to today and we have the iPhone, and what is the reaction? The exact opposite of what it was 6 years ago, but the reason being: the iPod is a trusted name. Anything associated with the iPod can launch an Apple-made device to a higher level of sales and generate massive hype. This is nothing short of what has happened to the iPhone even though it has yet to be released. The noise generated has caused some companies to belittle the device, a sign that they are taking note of it and view it as a potential competitor. The most prominent comes from Microsoft’s Steve Ballmer, knocking the platform and saying outright it would flop.

But the main question is about the iPhone’s influence in the mobile market, can it do to cell phones what the iPod did to music? My guess is yes but the effects won’t be as profound for a couple of reasons.

The Limitations Of Wireless Carriers

The Ball And Chain
Multi-year contracts are a favorite of Wireless Carriers but it’s a tradeoff for a heavily subsidized phone. You could say it’s a trap but most of the conditions are laid out in front of you and in some cases it’s a great deal. The only real downside is realizing how expensive phones are once you’re under contract and the hassle of not being able to buy the phone you want because it’s on a different network or in a different country. This restrictive practice has gone unchecked but we’ve become accustomed to it because of paying our cellular bills monthly. There are usually 12-24 months in a contract which means 12-24 payments and most people do not switch phones often enough to consider the contract a restriction, but instead a calendar for paying cellular bills.

Cellular Software
Software on every cheap phone made is an atrocity, even on some “higher end phones.” The first thought that comes to mind is the RAZR; its interface was slow and buggy. Of the 3 our family has used we’ve had little positive experience with the device but this went for almost every Motorola and Nokia phone that’s entered our house. The thing is, though, cell phones have long since evolved. They no longer just make calls; it would be horrible to market a phone that just made calls, and for sure Jerry in marketing would get fired. To make it appeal to consumers, oodles and oodles of useless extras must be piled on, such as a very low quality camera, tons of overpriced content, and of course a half baked web browser. Who in their right mind would browse the Internet on a thumb-sized screen, not even I look forward to browsing the “full” Internet on an iPhone’s 3.5 inch display because switching back and forth from a 17-inch display would take some getting used to. Nonetheless cell phone manufacturers make horrible and slow interfaces with no easy way of changing them or even options to do so.

It’s All About The Network
The most popular complaint about any network anywhere is dropped calls, bad coverage, and horrible call quality. It boils down to the placement of wireless towers and each region differs from carrier to carrier. No matter how much you complain, no matter how many times you call tech support, and no matter how many times you change your phone this problem will still exist and your only option is to pay a termination fee to switch carriers. If you do change carriers this problem might crop up elsewhere, forcing you to repeat the process once more.

iPhone you phone we all phone!

The Bolt Cutter
Since Apple commands over 3/4 of the music player market, the major accessories you’ll find are “Made for iPod” products, and its huge success has given the company unprecedented influence over portable gadgets. Could the same be said for the iPhone? Not necessarily, as other cell phone manufacturers will try to keep up, but the real challenge is warming up to wireless providers.

As of now Apple will only sell the iPhone with AT&T for 5 years, after which other carriers may pick up the iPhone, but Verizon had turned down an original deal with Apple. Could Apple break the iron grip these companies have? Not likely, but it could be reduced somewhat. Retail outlets like to sell phones heavily subsidized but charge more on plans, as of now Apple is not subsidizing the price of the iPhone and it will be the same whether you buy a contract or not. This could cause wireless providers to recoup some of the costs and charge less on plans, but not a lot.

It’s an Animal Inside
The reason many phones have such limited and less capable software is due to what hardware they run. Evidently you aren’t going to Windows Mobile on a 10 dollar flip phone. But the deal with Smart Phones, they are designed as portable computers and Apple realizes this. The key is to create a capable Operating System that will take full advantage of the Hardware, no more no less. If Apple can set an example of creating phones with an impressive Operating System and Hardware specs to match then others will follow the same route. However they could be stifled by the rules each carrier has in place.

Essentially if Apple innovated to the point where its iPhone could cure world hunger, kill cancer, and promote global peace they could still be blocked from doing so by wireless providers. However, it will cause cell phone manufacturers to compete, and if competing providers despise AT&T they can choose not to carry the iPhone and instead carry multiple iPhone killers.