Quote:
Originally Posted by kaioslider 
Not enough hype or too much hype? I'm starting to believe the former, or maybe the market is just starting to realize how big the iPhone treat is, so maybe it's just right amount of hype. I recently read that AT&T anticipates that the iPhone will bring with it a sharp increase in new customers. Of course the inverse of that is a sharp decrease in competitor user base. One of those is Verizon, as a current Verizon customer who is frustrated with Verizon's standard practice of crippling their phones to force you to use their extra services plus use up your minutes, well, I'm looking forward to it. I expect there will be an initial surge, then a slow down. It all really depends on how the pricing with service plans workout. While Apple is certainly going to try and maximize profits from the gotta-have-it-early-adoptors, the other factor that may have been considers in the pricing is supply and demand. Clearly the more users Apple can get onboard as early as possible will help establish it's base, the more people see it, touch it, the cascading effect well bring in new users, lower prices would do that, but maybe too much too fast vastly outstripping supply, which would lead to Apple losing its control on pricing. So the higher price will both maximize profits and at as a supply control. The production of a product has a limit, you can produce this many and no more, pricing of a unit can be adjusted. So if supply exceeds demand, for instance, AT&T (and Apple), can quick adjust the price of the unit, say with a two year contract, to balance supply and demand, in a controlled manner. The opposite, too low a price, channels empty, prices increase, and the market controls the iPhone. While initially this might be seen as desirable, you may lose potential hold outs as they consider the coveted device unobtainable. The article makes a very good point about the iPod factor of the iPhone, it's a major variable given the install base. I think that if Apple only did an iPod with a cell phone feature, that along would have seen huge demand (at a lower price of course), but they didn't, they made it an almost everything device. Add GPS done with google maps down the road, well, it would be the everything device, minus the kitchen sink (could do a widget for that I suppose
Not enough hype or too much hype? I'm starting to believe the former, or maybe the market is just starting to realize how big the iPhone treat is, so maybe it's just right amount of hype. I recently read that AT&T anticipates that the iPhone will bring with it a sharp increase in new customers. Of course the inverse of that is a sharp decrease in competitor user base. One of those is Verizon, as a current Verizon customer who is frustrated with Verizon's standard practice of crippling their phones to force you to use their extra services plus use up your minutes, well, I'm looking forward to it. I expect there will be an initial surge, then a slow down. It all really depends on how the pricing with service plans workout. While Apple is certainly going to try and maximize profits from the gotta-have-it-early-adoptors, the other factor that may have been considers in the pricing is supply and demand. Clearly the more users Apple can get onboard as early as possible will help establish it's base, the more people see it, touch it, the cascading effect well bring in new users, lower prices would do that, but maybe too much too fast vastly outstripping supply, which would lead to Apple losing its control on pricing. So the higher price will both maximize profits and at as a supply control. The production of a product has a limit, you can produce this many and no more, pricing of a unit can be adjusted. So if supply exceeds demand, for instance, AT&T (and Apple), can quick adjust the price of the unit, say with a two year contract, to balance supply and demand, in a controlled manner. The opposite, too low a price, channels empty, prices increase, and the market controls the iPhone. While initially this might be seen as desirable, you may lose potential hold outs as they consider the coveted device unobtainable. The article makes a very good point about the iPod factor of the iPhone, it's a major variable given the install base. I think that if Apple only did an iPod with a cell phone feature, that along would have seen huge demand (at a lower price of course), but they didn't, they made it an almost everything device. Add GPS done with google maps down the road, well, it would be the everything device, minus the kitchen sink (could do a widget for that I suppose
All good points. I'd like to add, I suspect Apple have plans and ideas yet to even surface. Once they have a bridge-head in this market I am expecting new, paradigm shifting uses no one ever thought of. Everyone is discussing all the known and existing technologies. I have no clue what might be coming but I am damn sure in a few years everyone will be using some new features that Apple introduce that today don't even exist. By then no one will know how they ever lived without them. Of course then all the others will be copying Apple's ideas as per usual ...
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Been using Apples since 1978 and Macs since 1984
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
Long on AAPL so biased. Strong advocate for separation of technology and politics on AI.
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