Following on from Arif’s viewpoint earlier, I’m pleased to bring you the perspective of a telecoms expert.
Colin Orviss is senior vice president at Patni Telecoms Consulting and deputy chairman of the Telemanagement Forum. Orviss has bucketloads of experience in the telecoms industry — he’s been providing business consultancy to a who’s who of mobile and fixed-line operators, service providers and media and entertainment companies.
A bit of background on his company: Patni Telecoms Consulting (PTC), formerly Logan Orviss International, offers independent consulting and strategic advisory services to the global telecommunications industry. Colin is precisely the kind of chap a lot of companies will be turning to for perspective on the iPhone, so let’s see what he’s got to say — here’s the man himself:
Over to you Colin!
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With the iPhone becoming cheap, or even free, as O2 is claiming to give it away for nothing provided buyers will go onto high-tariff plans, the subject of the iPhone risks becoming boring, even if the product itself (and the potential development of third party applications and services as part of the iPhone ecosystem) are anything but.
When the iPhone first came out, the excitement behind it was squarely focused on the promise of a truly multimedia, all-in-one device which was simple to use. Apple’s very image and brand reputation have been built on this perception. We are now seeing an upsurge in iPhone competition, typically including enterprise applications capabilities targeted at the corporate user – the perceived ‘weak link’ in Apples’ offering alongside the initial connectivity via EDGE.
Unfortunately for the competition, they haven’t cracked it yet. The iPhone still holds the lead in design creativity, usability and brand sexiness, and Apple has now shown an unexpectedly potent adaptability to solving its weaknesses in connection speed, enterprise and third party applications, and – above all – price.
The real question is this: will this new device, plus Apple’s as yet unannounced marketing plans, be enough to allow Apple to build a significant presence in high-growth emerging markets? This must surely be the long-term goal, and Nokia in particular will be scrutinising what Apple does next.
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Excellent — thanks very much for this Colin!
Question on the iPhone price: It does not appear to me they lowered the price. They now charge $10 more am month for their services and make the customer sign a two year contract. This means an increase in total out of pocket expense of $240, thereby bringing this iPhone cost, (as compared to the 2g model with $10 less a month), up to $439.
So I ask again, did they really lower the cost? Apple seems to have found a way to get around the biggest hurdle as to why folks didn't buy it, cost, by hiding a new monthly fee, and also a way to increase revenue by putting the apps via iTunes easily accessible on the iPhone.
Seems like this is a pretty good marketing move by iPhone.
Question on the iPhone price: It does not appear to me they lowered the price. They now charge $10 more am month for their services and make the customer sign a two year contract. This means an increase in total out of pocket expense of $240, thereby bringing this iPhone cost, (as compared to the 2g model with $10 less a month), up to $439.
So I ask again, did they really lower the cost? Apple seems to have found a way to get around the biggest hurdle as to why folks didn't buy it, cost, by hiding a new monthly fee, and also a way to increase revenue by putting the apps via iTunes easily accessible on the iPhone.
Seems like this is a pretty good marketing move by iPhone.
Question on the iPhone price: It does not appear to me they lowered the price. They now charge $10 more am month for their services and make the customer sign a two year contract. This means an increase in total out of pocket expense of $240, thereby bringing this iPhone cost, (as compared to the 2g model with $10 less a month), up to $439.
So I ask again, did they really lower the cost? Apple seems to have found a way to get around the biggest hurdle as to why folks didn't buy it, cost, by hiding a new monthly fee, and also a way to increase revenue by putting the apps via iTunes easily accessible on the iPhone.
Seems like this is a pretty good marketing move by iPhone.