Analyst: iPhone is Harry Potter "squib" of cellphones

Posted:
in General Discussion edited January 2014
Apple and AT&T may have produced marketplace magic in the past, but a new report claims that the firms' iPhone child may lack the gifts of its parents.



Timing the introduction of his report just after the release of the final Harry Potter book, Capital Group senior VP Ashok Kumar told investors that the iPhone had the pedigree of the iPod's success and the backbone of AT&T's service but that, like the unfortunate offspring in J.K. Rowling's stories, the combination fails to live up to the expectations set by its ancestors.



"In the Harry Potter books, a squib is the offspring of a witch and wizard that lacks the ability to produce magic," Kumar explained. "In the technology world, the iPhone is a product from Apple teamed with the wireless network of AT&T that lacks the ability to produce magical business growth."



Unlike the more mysterious origins of the fictional characters, however, the lackluster results for the iPhone are said to be traceable to mistakes made in the iPhone's features and pricing. The device is aimed squarely at the iPod's general public audience but is priced in the same range as personal digital assistants and smartphones. Either flaw could be a potentially fatal blow to the handset, Kumar said.



While businesses already have their own self-evident questions about the value of integrating a potentially less productive (and more distracting) smartphone into their networks when RIM's BlackBerry or Palm's Treo were already known to work well, the real issue is the expense of the iPhone for those used to both the the iPod and everyday cellphones, according to the report. The iPod has rarely been priced at $500 and never had a two-year contract associated with its use -- an especially serious problem when customers can get some of the features in much less expensive devices.



"The market is already saturated with popular [phones] that are virtually free to consumers," the expert wrote. "The perceived zero cost of a cellphone like the Motorola RAZR is a serious impediment... the $500 price difference between and iPhone and any number of richly featured [phones] is a lot for a large number of individuals and families to overcome."



Apple would also have to confront the backwash from the corporate world's traditional resistance to anything Mac in the workplace, as many IT managers might resist certifying the iPhone for their networks even if support falls into place. Both the Cupertino-based firm and its cellphone would have to overcome old stereotypes before they could gain acceptance, Kumar said.



In contrast to the squibs of Hogwarts, Apple is not necessarily condemned to mediocrity, according to the Capital Group. But the iPhone would not be guaranteed a better outcome unless its parent was willing to change its strategy, which could become a costly mistake in the long term.



"The old iPod magic doesn't translate here -- the iPhone is going to be much more difficult," Kumar noted.
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Comments

  • Reply 1 of 106
    thininethinine Posts: 71member
    Lackluster results? 270,000 in 30 hours is lackluster?



    And what a stupid comparison.
  • Reply 2 of 106
    msanttimsantti Posts: 1,377member
    Well well.



    A Harry Potter fan who is also an analyst.
  • Reply 3 of 106
    Cornelius Kumar Fudge is in denial. Perhaps he is a death eater in hiding.



    The pod chooses the wizard. Just ask wandmaker Steve "Olivander" Jobs.



    This is the first of countless steps out onto the thin-ice of an extended Harry Potter metaphor.
  • Reply 4 of 106
    Apparently references to 'iPhone analysis' is not enough to generate sufficient traffic for 'analysts' anymore, so throw in a few timely, misplaced remarks about Harry Potter and zippo to the top of search engine rankings! Success!



    BTW, it would sure be nice to have links to reports like these in the article, so I could spew my vitriol at the correct target, you know, if I were in to such things.
  • Reply 5 of 106
    macsharkmacshark Posts: 229member
    Two words: Microsoft Eater!
  • Reply 6 of 106
    What a TIT!
  • Reply 7 of 106
    Quote:
    Originally Posted by appletweak View Post


    Apparently references to 'iPhone analysis' is not enough to generate sufficient traffic for 'analysts' anymore, so throw in a few timely, misplaced remarks about Harry Potter and zippo to the top of search engine rankings! Success!



    BTW, it would sure be nice to have links to reports like these in the article, so I could spew my vitriol at the correct target, you know, if I were in to such things.



    awesome.
  • Reply 8 of 106
    Riddikulus. The RAZR used to be far more expensive, and the iPhone is very likely going to drop in price as well.
  • Reply 9 of 106
    sam_dlgsam_dlg Posts: 24member
    well, guys, he has a good point! I mean, why would I buy such an expensive iphone when I could just get a razr for free?



    jeez, this guy's brilliant!



    I'd research what else he doesn't think is great and put the mortgage on it.
  • Reply 10 of 106
    groveratgroverat Posts: 10,872member
    The iPhone is ridiculously expensive and there is no way in hell it will not impact the iPod. This is a very smart move on Apple's part to get into this market, but to expect it to happen without growing pains is absurd.
  • Reply 11 of 106
    domerdeldomerdel Posts: 78member
    it's just a rare situation for apple, where we're used to them being ahead of us, but unfortunately, we as consumers, are ahead of the iPhone.



    The iPhone, in my opinion is great, but it missed some really really simple implementations of what a cell phone can do (IM chat, 3rd party apps, video and picture messaging, etc).



    NAND flash memory (or whatever they're using in the iPhone) is just too early to adopt in cell phones... I know when you add all the compononents it's priced fair to be $499-599.. but the general target market of the audience is more alone the lines of $299.



    It is a goal of mine to lean more towards Apple products, replace my old gadgets with new Apple toys.. unfortunately, my cell phone will have to wait til 2010. Verizon is a great network, but they sell crapcastic phones... thus re-naming them to Craprizon or JankRizon
  • Reply 12 of 106
    biggsjmbiggsjm Posts: 25member
    This guy does nothing but spit out un-supported reasons why the iPhone will fail, using the Harry Potter term "Squib" as a reference for what this product will be. But here are just a few problems with his article.



    1. AT&T Network. If its so bad, then why do they have the most subscribers (approx 67 million)?



    2. Phone Pricing. Everyone knows that the iPhone is expensive, but if you remember, the iPod was originally more expensive than other comparable media players when it first came out and critics said the same thing. What they didn't consider is the fact that people will actually PAY for quality - the real reason the iPod sold well (not just because it was flashy or "cool").



    3. Features. Yes, yes. We all know that the features on the iPhone exist and other phones. Again, its about the experience.



    4. Business / Target Market. I will say it again. THIS PHONE IS NOT A BUSINESS PHONE. How many times do I see articles reviewing the iPhone saying that it won't sell because its not business friendly. Apple is courting the gobs and gobs of 18 to 35 year-olds that have tons of discretionary spending (see xbox 360, PS3, etc.) that will pay a premium for the new gadget or access to high technology. These early adopters will drive the prices down until the iPhone (or subsequent versions) can be mass marketed on the consumer side. Never will this be a mainstream business product.
  • Reply 13 of 106
    biggsjmbiggsjm Posts: 25member
    Quote:
    Originally Posted by domerdel View Post


    it's just a rare situation for apple, where we're used to them being ahead of us, but unfortunately, we as consumers, are ahead of the iPhone.



    The iPhone, in my opinion is great, but it missed some really really simple implementations of what a cell phone can do (IM chat, 3rd party apps, video and picture messaging, etc).



    NAND flash memory (or whatever they're using in the iPhone) is just too early to adopt in cell phones... I know when you add all the compononents it's priced fair to be $499-599.. but the general target market of the audience is more alone the lines of $299.



    It is a goal of mine to lean more towards Apple products, replace my old gadgets with new Apple toys.. unfortunately, my cell phone will have to wait til 2010. Verizon is a great network, but they sell crapcastic phones... thus re-naming them to Craprizon or JankRizon



    You can't honestly think that they weren't limited by what they could release due to time, and the fact that Leopard (which was supposed to ship in June) didn't. iChat, Notes Syncing, To Dos, etc are all going to be patched when leopard comes out.



    As for MMS, Video, 3rd Party apps., etc. think about this. Core Animation. Another Leopard feature, would probably be required for at least one of these if not all.



    The point is, they were limited in their feature set because of Leopard's delay.
  • Reply 14 of 106
    wallywally Posts: 211member
    Quote:
    Originally Posted by Thinine View Post


    And what a stupid comparison.



    Ditto. An analyst who uses Harry Potter analogies? How old is this guy?



    I get the feeling that these "analysts" think that whatever they say will come true... they do know however that people are laughing at them right? Another great quote: "Apple is not necessarily condemned to mediocrity".... wow thanks for that. Whew.



    What an ass.
  • Reply 15 of 106
    icfireballicfireball Posts: 2,594member
    When an corporate analyst has to resort to allusions to popular literature to explain business, you know whatever they have to say is bullshit.
  • Reply 16 of 106
    steviet02steviet02 Posts: 594member
    Quote:
    Originally Posted by biggsjm View Post




    2. Phone Pricing. Everyone knows that the iPhone is expensive, but if you remember, the iPod was originally more expensive than other comparable media players when it first came out and critics said the same thing. What they didn't consider is the fact that people will actually PAY for quality - the real reason the iPod sold well (not just because it was flashy or "cool").



    Not really... The iPhone itself is $500-600, but the recurring costs @ a clip of $60+ a month is altogether different from an iPod. I think alot of you are forgetting that smart phones make up a very small portion of phone sales in the US, and as such most people see these price tags as a waste of money. Try getting a family of 4 who make average money to buy these, good luck with that... But I bet 2 or more in that family have an iPod or iPod nano. It's not just the price of the device, while it helps, the recurring costs are high for normal cell users.
  • Reply 17 of 106
    macrrmacrr Posts: 488member
    Not only is this analysis a regurgitation of what has been said before- it's pretty ballsy considering most analysts stopped talking this nonsense when the phone was released. Now that the initial numbers were released, this guy's analysis is utter garbage and quite incomplete.



    Capital Group pays this guy? I think this guy should stick to finding white castle and getting stoned after reading harry potter.

  • Reply 18 of 106
    mstonemstone Posts: 11,510member
    Quote:
    Originally Posted by biggsjm View Post


    Everyone knows that the iPhone is expensive, but if you remember, the iPod was originally more expensive than other comparable media players when it first came out and critics said the same thing. What they didn't consider is the fact that people will actually PAY for quality - Apple is courting the gobs and gobs of 18 to 35 year-olds that have tons of discretionary spending



    Right! It is a niche market - That is why Steve said he only wanted 1% of the market. I love my iPhone, my MacBook Pro, my Mac Pro, my 30" Cinema display, and my new iMac. Too bad they don't make sports cars, I'm in the market for one.
  • Reply 19 of 106
    josa92josa92 Posts: 193member
    .lol.

    squib.

    maybe this squib will perform magic later in life... (harry potter nerd i am i am...)

    anyway, this is lame. not to mention late. and irrelevant.... and.... harry potter? really? why?
  • Reply 20 of 106
    fraklincfraklinc Posts: 244member
    Its like some of these guys hate it so much they have nightmares of it,

    Dam, if you hate it that much dont even talk about it, do anyone remember the 5gb iPod

    it was price at around $499 and the 20gb around $599 and they sold

    millions of then, so I really dont see apple having a problem with the iPhone,

    unless att wires the entire us with 3G with a year which I find imposible to do

    so soon
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