Experts warn iPhone hopefuls to wait a while
While they might have a hard time convincing the people already queuing in line at some of the busier AT&T and Apple Stores across the United States, some experts have warned consumers to wait a while before parting with cash and signing up for an iPhone.
Todd Dagres, from Spark Capital, who specialise in wireless and media investment, said that he predicted a new iPhone would offer twice the performance of the first generation one coming out tomorrow, and cost half.
Charles Golvin, from Forrester, thinks that the current iPhone model will retail at $299 once a newer, advanced, possibly 3G model is launched next year.
It's the dilemma of technology. Do you buy the hottest new products now, knowing that they could be cheaper, more feature-laden, and more reliable, six months down the line. Or does your gadget lust and fear of looking enviously at fellow commuters and friends who have bought the gadget get the better of you?
The iPhone will always evolve and improve, just as the iPod has, and Apple's computers, and surely the currently lacklustre Apple TV will - as well as countless products from other manufacturers.
Go on, admit it - if you're an Apple freak, you want one. And you want it now.
I bet half of those analysts will be parting with their cash come launch day, too.
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Judging by yesterday’s selloff, I think potential customers are starting to realize how expensive the iPhone will be. If you sign the mid-range $99.99/mo service plan after purchasing the 8GB iPhone model, that alone will set you back $3000 during the two-year contract (without any accessories)!
Other potential hurdles:
* You must be an AT&T customer to use the iPhone. With a market share of 20%, that means 80% of wireless customers must cancel their current contracts to sign with AT&T. Being a Sprint customer, I would have to pay a $175 cancellation on top of the $3000 price tag for the iPhone. AT&T’s exclusive contract runs through 2009.
* Only 4 & 8GB of hard drive space? My tiny video iPod holds 30 GB for less than $200.
* Recent surveys have shown that the majority of IT departments will not even consider the iPhone due to its PC incompatibilities & exclusive AT&T contract. That will dampen business spending & all but eliminate demand for the higher-tier contracts.
This is the ultimate “sell the news” scenario. On Jan 9th 2007, Steve Jobs announced the iPhone at the Macworld Conference & Expo. The stock has since been on fire rising 50% to $125, adding $30 billion to the company's market capitalization. Will the iPhone really hold that much value for Apple? This huge runup comes after a fantastic finish to 2006 after Apple’s stock bottomed out at $50 in October. Thus, nearly everyone holding Apple is sitting on huge gains.
Posted by: Eric B | June 28, 2007 4:20 PM