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#1 |
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Kasper's Automated Slave
Join Date: Nov 1997
Posts: 6,151
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iPhone 3G rocks Japanese smartphone market
Mobile providers in Japan are crediting the launch of Apple's iPhone 3G with dramatically shifting large numbers of subscribers between providers. The impact of the new phone is also answering critics who insisted the iPhone would find only limited interest in Japan.
Big in Japan According to the report "iPhone Affects KDDI's Net Subscription Growth," by Japanese tech business journal Tech-On, SoftBank Mobile, Apple's exclusive provider of the iPhone 3G in Japan, led other providers in the country in new mobile phone subscriptions, grabbing up 215,400, more than half of the 391,500 new activations in Japan during the month of July. "We believe our large net growth was an iPhone effect," SoftBank representatives said. Rivals service provider KDDI agreed, noting that new cancelations related to customers' porting their numbers to another provider surpassed new incoming transfers for the first time ever in July. It too credited the iPhone 3G launch with the unusual shift. "We are accepting the fact, considering that our handsets weren't attractive enough," KDDI's PR group said. Japan's Cultural Barriers Many originally predicted that Apple's phone would flop in Japan, a market where phone hardware and mobile networks have long offered greater sophistication than other markets, and particularly when compared to the US. Apple's original iPhone could not be used in Japan because there is no 2G GSM service in the country; Japanese providers pioneered the deployment of advanced 3G mobile networks a decade ago, skipping the second generation entirely. Other critics pointed out that the iPhone lacked a variety of culturally significant elements unique to the Japanese mobile market, including the ability to scan the QC barcodes that appear everywhere, inclusion of Sony's RFID-based "FeliCA" swipe chip for purchases (used by vending machines), and the capacity to enter Japanese characters, including "emoji," a popular new set of scores of pictographs (below) many people in the country consider essential in mobile messaging.* Differences in the Japanese market previously frustrated Apple's ability to increase Mac sales there, as many Japanese, particularly the youth demographic, now use smartphones in place of full sized computers. Microsoft has faced similar problems in trying to sell its Xbox game consoles in the country, where tastes in gaming software simply differ. "Breakthrough" Internet device The cultural barriers originally expected to hold back interest in the iPhone 3G have not been enough to overcome Apple's strong brand and the fascination with the iPhone's slick and pioneering interface. “Just the interface itself is enough reason for me to buy the iPhone," said Andrew Shuttleworth in a Macworld story exploring the iPhone's potential in the Japanese market. Shuttleworth, described as "a long time Windows Mobile user," added, "the best thing about it is that I can get a full web surfing experience — something I’ve wanted for a long time." While Japanese phones have led the technology curve in a number of areas, Shuttleworth said the "Internet on Japanese mobile phones have been following the i-mode system ever since. It has hardly improved even when smart phones arrived in 2005, but I think the iPhone can change that.” The existing feature omissions on the iPhone appear to have little impact on its uptake among users. An AP article covering the iPhone 3G launch cited early adopter Kentaro Tohyama as noting that he would simply continue to also use his existing phone for emoji-laced messaging with friends, explaining, "I don't want my friends to think I'm this uncool, cold-hearted person." From the makers of iPod Another factor that has helped launch the iPhone 3G in Japan is that Apple's iPod is already wildly popular there. In addition to brand recognition, the Japanese market also seems to be attracted to Apple's simple, easy to use interfaces, which is not a strong point in other existing devices being sold in the Japanese market. Sony's entrenched leadership in the MP3 market with its Walkman was eviscerated by Apple's far simpler to use iPod in Japan and worldwide, while the*Sony Connect online store also couldn't even manage get off the ground even as iTunes grew exponentially. Ease of use and simplicity were major reasons why Apple cleaned up the music player market. Similarly, while Japanese phones are revered for their exceptional hardware styling and features, they also sport complex menus that are difficult to navigate and services that are often impractical to use, leaving many of their pioneering features ignored. As one reader noted, "most phones in Japan felt like you're running Windows 98."* Another example is the TV playing "1Seg" feature that Japanese phone makers have been rushing to market. It is largely just impractical. One user described the feature as "a notorious battery gobbling monster. Fourty-five minutes of watching TV on the cell phone would kill the battery." Signal reception of the UHF system is also terrible when traveling faster than a brisk walk. Apple has often received criticism for taking a unique approach to engineering that only tends to include features that are practical and usable rather than following the industry trend to layer on features thick to see which stick. On the iPhone, Apple has even erected limitations on third party developers, efforts that are intended to keep its products simple and reliable rather than full featured but complex and problematic.* iPhone-induced globalization Apple's exclusive partnership with SoftBank in Japan has also made it clear that significant numbers of users are willing to migrate to another provider to get the iPhone, a fact also reported by AT&T in the US, and O2 in the UK. That not only brings increased attention to the iPhone, but also enables Apple to negotiate favorable service agreements, market promotion deals, and custom support for differentiating features on the iPhone, including Visual Voicemail. Conversely, Apple's launch successes in Japan and Europe should also help accelerate the adoption of technologies demanded in those markets to the US, which has long been a backwater of stagnant mobile technology. The iPhone 3G has already bolstered AT&T's support for developing its UMTS network here in the US. Apple's universal product strategy, which seeks to sell the same products globally rather than develop custom devices tailored to each market, has also brought international keyboard support (including Chinese handwritten input) to American users. It will likely also result in the import of Japan's QC barcodes and could possibly result in a wireless payment system similar to Sony's FeliCA. The iPhone's universal Apps Store should also facilitate in an influx of international software, which in turn will help Apple in its push to enter enterprise markets worldwide. |
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#2 |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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It gets tiring hearing from a very few people who tell us that they "know" how badly the iPhone is doing in their countries.
I doubt they know much of anything when it comes to phones. It's also possible that they say this to try to make it SEEM as though the product is doing poorly, when it obviously isn't. What their problem is, I don't know. This isn't the first report that shows the iPhone is doing well in Japan. Last edited by melgross; 08-11-2008 at 10:15 AM.. Reason: punctuation |
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#3 | |
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Registered User
Join Date: Nov 2006
Posts: 794
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#4 |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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#5 |
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Registered User
Join Date: Nov 2006
Posts: 794
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Well the current mobile phone sales figures are around 1.15 billion per year.
Apple fans are constantly dooming all other mobile manufactures. The only one left is Apple has sold 10 million phones, so is this the incorrect one? |
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#6 |
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Registered User
Join Date: Oct 2005
Location: Edinburgh, Scotland
Posts: 293
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Is the iPhone the biggest leap forward in phones this century?
Now that we've sorted that out, no one's talking about driving competitors out of business. Just giving the whole industry a much needed kick up the backside and getting progress back in order. Great article as always Prince Dan. The AppStore may well put an end to the trouble with those mysterious smiley symbols. Indeed, the only limit on the iPhone is developers and Apple's imagination. Unlike the now obsolete generation of hardware it's up against. Looking forward to seeing what Japan's handset makers do next. They're the closest thing Apple have to a direct rival besides RIM. |
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#7 |
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Registered User
Join Date: Feb 2007
Location: England
Posts: 557
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#8 |
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Registered User
Join Date: Dec 2007
Location: New York
Posts: 1,125
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Bloodbath.
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#9 |
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Registered User
Join Date: Nov 2006
Posts: 794
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Saying many is a little extreme, Motorola maybe. The other big names manufactures will be fine.
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#10 | |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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Quote:
As you can see from this article, and I'm assuming that you haven't read any other article by any other writer in any other publication anywhere, Apple is doing quite well in Japan, which a couple of people have tried to tell us wasn't true. But it is. When you look to see how well a new product it doing, you,look at its sales growth. Not the total number of sales relative to established products. It takes a few years to move up in the ranks. I remember when I bought my Samsung i300 Palmphone years ago, that Samsung was but a small player in the phone business, with only about a 5% marketshare. No one thought that Samsung understood the business well enough to move up. But they were wrong, and now Samsung is one of the largest cell manufacturers in the world. Apple is competing only in the smartphone market. Right now, that;s about 10% of the market overall, but is the most profitable part. That part is expected to move to 30% in a few years, mostly because Apple has made people aware of it more than before. This is like the digital camera market. Only 7.5% of all digital cameras are D-SLR's. But almost all the profit is centered around those D-SLR's. The point and shoot market is losing money quickly, except for a few products. Which part of that market would a company rather have, a good part of the 7.5% that is highly profitable, or a large share of the 92.5% that is losing money? Apple will have a large share of that profitable market, while most likely ignoring the basic phone market. Will Apple take the market over? Who knows? No one thought MS would take the OS and Office markets over either in the mid '80's. |
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#11 | |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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Quote:
But it's also looking dimmer for Android. I'm not so sure it will make it. |
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#12 | |
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Registered User
Join Date: Mar 2007
Posts: 728
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Quote:
We've had to listen for a year about how Japanese users would never settle for the iPhone because of the 'critical features' it lacked. Those nay-sayers always seemed to think that the Japanese are incapable of valuing usability of base features on a smartphone. |
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#13 | |
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Registered User
Join Date: Apr 2005
Location: philadelphia, pa
Posts: 61
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Quote:
comes across differently than Everyone is talking about you. I think emoji is used often because messaging in Japanese or Chinese with most mobile phone is quite involved, so these predefined emoticons help convey a message conveniently without entering too much more characters. However, the easier input interface on the iPhone may change this. Although, it would still be nice to have it, emoji. I think it would be nice if the mail app would also interpret both emoji and emoticons, because a picture is worth a thousand words ![]() Last edited by danielchow; 08-11-2008 at 11:01 AM.. Reason: clarification |
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#14 |
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Registered User
Join Date: Sep 2007
Posts: 160
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My goodness. How can the iPhone possibly be successful in Japan without having emoji and a hole for dangling trinkets? Suppose the Japanese handset user really wants the same things that are offered for Americans, perish the thought, such as a full internet browsing experience and a very simple user interface.
Can the Japanese live without FeliCa and 1-Seg. I'm not sure about Apple getting around the lack of FeliCa, but 1-Seg could be replaced with simple Youtube availability. There are more than enough videos to keep the Japanese occupied. An efficient manga reading app was made available for the iPhone which might also keep the Japanese pleased.I'm very curious to see whether or not the average Japanese cellphone user can be tempted by the iPhone. I do think that some of the fashionable, long-nailed Japanese women might have to take a pass on the touch-screen input. |
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#15 |
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Registered User
Join Date: Feb 2006
Location: Ireland
Posts: 8,559
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Whatever it is that group of emoticons they use Apple should add them to the iPhone software for over there (when they choose that language an emoticon button could appear on page 2 of that keyboard, and when pressed it could provide access to all of them). But that would be too simple a solution for Apple, wouldn't it? Get on it Apple, it's time to de-wax those ears again.
Collecting my SSD iMac Fry-die. :D
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#16 | ||||
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Registered User
Join Date: Nov 2006
Posts: 794
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Also, the other manufactures are in a better position to compete on price as well, something Apple doesn't like doing. Last edited by jfanning; 08-11-2008 at 11:54 AM.. Reason: spelling... |
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#17 |
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Privileges Revoked
Join Date: Jan 2008
Location: Currently where I am located.
Posts: 1,067
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Just bought myself a Nikon D300. Love it.
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#18 | |||
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#19 |
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Registered User
Join Date: Jan 2008
Posts: 1,105
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Until they actually release the Japanese iphone sales number --- all this talk is pure PR BS.
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#20 |
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Registered User
Join Date: Jan 2008
Posts: 457
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Is there a reason emoji can't be put on the iPhone? I must've missed something. I mean, how hard can it be to put smiley's on the thing? Is it a MS thing? I doubt someone owns emoticons.
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#21 |
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#22 | |||
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Registered User
Join Date: Apr 2006
Location: The Ansible
Posts: 11,779
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Didn't you hear? AI is hosting this year's superbowl of hyperbole
All advanced cell phones are added to the total sales of cellphones but Apple is competing directly against other smartphones. Just like other smartphones that are being geared toward multimedia are competing against the iPhone. You don't see the Samsung Instinct commercials comparing itself favourably to a free, throwaway phone, do you? The only sense that your comment hold true is that the iPhone has made smartphones more popular so that it's not just geel or business device. This trend is affecting the sales of all smartphones positively, not just the iPhone. Quote:
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To the chagrin on many, Apple is saving money on R&D and production by having essentially one phone whose only difference is an extra 8GB SSD or a white case backing instead of a black one. As much as people hate the lack of options it does afford them the ability to stay competitive and still get a good profit. Of course, the other side of that coin of that is to make make many different variations that suit a larger populace to gain profits by having more sales. Quote:
Do your part to clean up AppleInsider forums: User CP » Edit Ignore List » Teckstud
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#23 |
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Registered User
Join Date: Sep 2005
Posts: 120
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iPhone Not SOLD OUT in Japan
Although I don't doubt AU is suffering from the iPhone impact (and I think AU would have been a better fit for the iPhone), the iPhone has not sold out in Japan. I keep seeing articles saying this, but it isn't true.
My local SoftBank dealer still has them in stock, and I would expect that other small location dealers also have them still. |
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#24 | |
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Join Date: Apr 2006
Location: The Ansible
Posts: 11,779
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Wikipedia states that there are patents for emoticons and even links to one that specifically is about using them on cell phones. I hate patent trolls! • http://en.wikipedia.org/wiki/Emotico...roperty_rights
Do your part to clean up AppleInsider forums: User CP » Edit Ignore List » Teckstud
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#25 | ||
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#26 | ||
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#27 |
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Join Date: Apr 2006
Location: The Ansible
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I see what you are saying but I disagree with the rationale. One is a comparison of a category and the other is a specific product within a category. The smartphone category is directly competing with mid-range and simple cellphone categories, but the iPhone product is directly competing against other smartphones.
Do your part to clean up AppleInsider forums: User CP » Edit Ignore List » Teckstud
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#28 |
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Join Date: Jan 2008
Location: California
Posts: 89
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[QUOTE=jfanning;1292208]No, they are competing against all cellphone sales.
Aren't you comparing apples with oranges then? It would be like not separating all vehicle sales from trucks in your sales stats. |
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#29 |
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Join Date: Nov 2006
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#30 |
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Join Date: Jan 2005
Location: Tokyo, Japan
Posts: 477
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as a 5-year resident of japan i really feel the mobile market over here is over-rated. when i first arrived in 2003 i was quite impressed with the technology on offer; full-colour screens and "interesting" features were quite engaging but in the years since the likes of nokia and sony-ericson have left the closed japanese market in the dust. sure, phones still have a lot of features but most are superfluous and hidden in clunky text menus systems. add to that the MASSIVE ipod-created cool appeal of apple and it's no surprise that many consumers might choose to forgo 1-seg and emoji mail for a clean and friendly interface.
IR beaming is pretty damn handy on the dating scene but then not everyone is on the dating scene! |
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#31 | ||
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Join Date: Jan 2005
Location: Brooklyn, NY
Posts: 5,249
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#32 |
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Join Date: Apr 2002
Location: No GPS signal.
Posts: 1,169
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"You uncool, cold-hearted person! Why are you speaking to me with your voice? I demand a text message, with a pre-defined smiling circle!"
The bar-code thing sounds cool, though, if used widely. I bet if Apple added that the the software, the practice would suddenly catch on outside Japan. I especially like the idea of scanning a business card to load a contact.
nagromme
Would you like a treatment? |
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#33 | |||
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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You don't read anything, do you? They are not competing against all cellphone sales. This has been stated over and again.
If you don't understand that basic fact, then there's no point in your bothering to be in a discussion about it. Quote:
Re-read the article. It's very clear as to what they mean. Quote:
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#34 |
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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#35 |
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Join Date: Jul 2008
Location: Chitown
Posts: 30
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Might depend on what the goals are for Android. I foresee little market overlap between Android and the iPhone or other smartphones. Rather I think Android is gunning for Symbian OS to replace it as the dominant system on non-smart phones worldwide. This will be a significant market for years to come. And let's face it, if Android is half as good as its demos, it will be 10x as good as any Symbian-based phone I've ever used.
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#36 | ||
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Global Moderator
Join Date: Sep 2004
Location: NYC
Posts: 19,612
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Quote:
They jump at anything Apple, as the MS haters jump at anything MS. Quote:
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#37 | |
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#38 | |
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Global Moderator
Join Date: Sep 2004
Location: NYC
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The one phone that is supposed to be coming out with Android has been delayed for the second time, etc. Lots of problems. |
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#39 |
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Global Moderator
Join Date: Sep 2004
Location: NYC
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#40 | |
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Registered User
Join Date: Nov 2006
Posts: 794
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Quote:
So you are saying that the person wanting a fully qwerty keyboard phone will buy one of them, and a cheap phone as well? Yeah that makes sense, you must have too much money if you can purchase two devices when one will do. Most people will purchase one, or the other device, not both, so that makes them in competition with each other. I have never purchased a subsidised phone |
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