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3G iPhone: Doesn't Live Up to the Hype but 'Platform' Strategy is Sound

Posted Jun 10, 2008 10:24am EDT by Aaron Task in Investing, Electronics, Telecom

The day after the formal launch of the 3G iPhone, there is no rest for Steve Jobs or the legion of Apple watchers -- fan and foe alike.

The bottom line on the 3G iPhone is that expectations were so high it would been nearly impossible for Apple to meet, much less exceed them. Still, there are some legitimate issues being raised with the features announced yesterday, including (but not limited to):

  • No front-facing video camera.
  • No MMS technology for sending pictures and video.
  • No cut/paste feature.
  • Not enough storage, especially on 8 GB unit.
  • Not on sale until July 11.

There is also some consternation about the price of the phone being "too low," and the fact AT&T is abandoning the revenue-sharing model with Apple on the new iPhone.

Having said all that, it does make sense for Apple to sacrifice some short-term revenue in an effort to gain greater market share as it seeks to position the iPhone as not just a phone, but a major computing platform. Other firms are already developing software applications for the iPhone, which will be available at the new "Apps Store" beginning July 11.

39 Comments

Adam
Adam - Tuesday June 10, 2008 10:39AM EDT

The price isn't too low. It's more expensive to the consumer than the previous iphone when including the data plan (and you can only legally buy the phone alongside the data plan).

Schmelkus
Schmelkus - Tuesday June 10, 2008 10:45AM EDT

legitimate issues? Not on sale yet? That's a legitimate "issue"? Some people just wanna complain. Oh yeah, and you forgot to list "Doesn't pop popcorn."..... haters.

d
d - Tuesday June 10, 2008 10:46AM EDT

Utter B.S. I did not buy origional IPhone but will buy 3 now as soon as I can.

Yahoo! Finance User
Yahoo! Finance User - Tuesday June 10, 2008 10:46AM EDT

iPhone is just a hype. There are many phones in European or Southeast Asian markets which can do a lot more.

Yahoo! Finance User
Yahoo! Finance User - Tuesday June 10, 2008 10:46AM EDT

iPhone is just a hype. There are many phones in European or Southeast Asian markets which can do a lot more.

Ryan
Ryan - Tuesday June 10, 2008 10:51AM EDT

Media phone that can't send MMS messages?? Give me a break! The Apple nutswingers are the only people that will like this junk!

Yahoo! Finance User
Yahoo! Finance User - Tuesday June 10, 2008 10:55AM EDT

Idiotic article. Please increase the quality of what you are showing. Not worth the electrons to visualize. Maybe Google has better.

M R
M R - Tuesday June 10, 2008 10:56AM EDT

It's funny that blodget guy is talking about the hype. He was the one that hyped dot com stocks and destroyed many lives. America is great, even frauds like Henry Blodget can restart his career.

GoPat
GoPat - Tuesday June 10, 2008 10:59AM EDT

Dear TechTicker: Its not all about iphone. There are 10 phones in the marketplace that are better then the iphone. The top four on the list is dominated by, well you know of course BY Blackberry; and with two more blackberry' that are soon to be release in the near future; they will dominate the top six spot on the list...

Yahoo! Finance User
Yahoo! Finance User - Tuesday June 10, 2008 11:05AM EDT

What tool really cares about MMS? Not to mention it's just a software issue. These tools on this video no cut & paste LOL. Again another software issue. Video again software. What do they think the 2.0 sdk will allow people to do?

Yahoo! Finance User
Yahoo! Finance User - Tuesday June 10, 2008 11:06AM EDT

Lenny funny Blackberry LOL ha ha ha ha. That company will be owned in a couple years.

AndrewD
AndrewD - Tuesday June 10, 2008 11:07AM EDT

This is just a market share ploy. The I-Phone is a great phone has a great OS....but is nothing new or special. Hell it took how long to get 3-G!? And it still is missing common features a $60 phone would have? Still plenty of better choices for a phone right now. They really need to jump ahead of the pack in terms of features on a phone, currently they are catching up.

Yahoo! Finance User
Yahoo! Finance User - Tuesday June 10, 2008 11:13AM EDT

There will be a firmware or third party solution to the MMS and copy/paste issue.

mike
mike - Tuesday June 10, 2008 11:14AM EDT

not to sound like an apple fanboy, but the blackberry is crap compared to the ease of use of the iphone. My bro in law just got the blackberry curve, and i had a chance to check it out. What garbage. stupid scroll wheel to read email was useless. Ill be buying the new iphone to replace my old one, and also one for my wife. mms and cut and paste would be nice. maybe there will be a program that will allow this functionality once the app store opens.

David
David - Tuesday June 10, 2008 11:17AM EDT

typical news people - trying to get a reaction. i have the iphone - its great - and the new one comes at a really good price point. the key here is that many companies are developing apps for the iphone - because people use it- which drives innovation-

NuYoRican00
NuYoRican00 - Tuesday June 10, 2008 11:17AM EDT

iphone is bootleg...its a fashion phone not a work horse blackberry's & windows mobile phones are workhorses does the battery still suck on the iphone? still no picture messages lmao...what a joke people will buy anything to look cool these days

Yahoo! Finance User
Yahoo! Finance User - Tuesday June 10, 2008 11:26AM EDT

It's funny to me how those that mock or slam the iPhone don't have one. Now even they can afford one on July 11th! I bought my iPhone on June 22nd of last year and am STILL amazed at the thing. Tell me something, what other "phone" that exists on the market today is able to completely change it's interface, upgrade it's capabilities, yield to user requests, all from plugging it into your computer once every few weeks?! How do you like your BlackBricky now? The iPhone will reign supreme for quite some time to come.With the price-point Apple has set for the new release, everyone will own one,

Karl M
Karl M - Tuesday June 10, 2008 11:29AM EDT

No MMS technology for sending pictures and video. Who wrote this someone from the big vendors, E// or Nokia. Who prefers to use MMS in preference to other messaging standards ? The iPhone has several strange feature gaps and inconsistencies but this is not one of them.

Michael
Michael - Tuesday June 10, 2008 11:31AM EDT

The UI on the Blackberry is crap. The lack of a fully fledged browser on the BB is the deal breaker for me. How could they overlook the copy and Paste on iphone. Must be the next thing they'll make the fanboys pay for. In version 3.0 of the firmware :)

Don
Don - Tuesday June 10, 2008 11:31AM EDT

18 months ago, a tiny computer/cell phone was only in someone's imagination. During that time, the operating system platform and iPhone was born and survived and is growing in all the right places. Is it flash in the pan, or is it actually transforming the computer and the phone business?

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