3G iPhone: Walt Mossberg Sizes Up the Competition

The essence of the iPhone lies in ecosystem that surrounds it. Has anyone seen the latest # of downloads of applications? At 10 PM last night before the iPhone launched, there were 25K paid for apps downloaded, and 250K free apps downloaded. The revenue implications from this are off the charts. The iPhone will be a magnet for anyone trying to make money because of the stranglehold they have over the consumer. Consumers love just about everything Apple produces, so when they launch a new product, everyone jumps on board. Therefore, any device they produce that has connectivity serves as a gateway to the network. If everyone buys an iPhone, and you sell things, it's probably a good place to market your product or service. This is why companies pay $2M for SuperBowl ads ... because everyone is watching. The revenue model behind the iPhone network is the big enchilada and there is enough money there to give the hardware away for free. When this thing gains traction, and it looks like it will in a matter of months, Apple will start to win just about every Web 2.0 battle out there and they will be the first to truly monetize social networking on a transaction basis rather than from subscriptions or lead generation models.

The success of all Apple products rest on its vastly superior operating system, Leopard. With system integration across all product lines I would expect them to slowly take market share in all areas. Their only real threat right now is Google and they have too many cross interests for any serious head-to-head competition to hurt either one of them.

Mister Mossberg: It's all about Software!? WoW I can hardly wait to use Vista on RIMMs Thunder. Our IT dept is so Thrilled. RIMM shows so much Vigour. It Thrashes Nobley and in a Painfully Slow way too, before it Plunges like a Ball of Fire. Will it be a Phoenix rising? Yeah, I think so... Falls bellow a Hun'... But WAIT! And then there'll be the soon to be released RIMM Kickstart for $49.99, (JEEPERS) from smart phone market to El Cheapo market. Oh Golly. I can hardly wait. A phone for retards too. Those BB guyz are so smart at making money. Never mind tarnishing the brand. When in doubt, make money. Buy time. And nevertheless die.

While there is always wish/apps functionality via the new phone Apple will work out these as they always do in the next gen. Everyone does that,and we all know it....They put out the first gen to recoup R&D costs then in the next round add the rest of the options you wanted so you are forced to upgrade...Still, another homerun for Apple. Cutting edge, seamless, cool...Apple as always.

the samsung intinct has voice dialing and other better functions plus gps with voice turn by turn.

It's "QWERTY" keyboard! Q-W-E-R-T-Y are the first six letters found in the top left corner of our keyboard. Last time I checked, the iPhone had a virtual QWERTY keyboard, what is this guy talking about?!?!?!? The difference between Blackberry and iPhone is that the Blackberry has the tangible keypad. The guy writing this article is a moron!

I luv my iphone but will get the new release this morning to experience the faster safari with the new one.how exciting.thanx apple.

Listen Baby: If you gotta have KWERTY, NO Problem. As Tertiary industries came in suit producing iPod gizmos, so will an Industrial Design Dept make a sleeve of sorts with a flip keypad. Eventually it'll come to fruition for the Spazzes. It should have been a sign for you when early versions of the iPod were hacked into 96 kHZ monophonic recorders that the AAPL is not just about the nutty fanboyz. The gearheads and software developers sitting quietly are trully monolithic. You fellows at RIMM better hold onto your shorts, cuz if you're not forced to eat them, you're gonna haave to sell them. Bon appetite.

This doesn't make a whole lot of sense. I've been a devoted iPhone fan and user since they first hit the shelves. So far my experience with the iPhone can be best described as suave and unapologetic; somewhat equivalent to a banana daiquiri without the swishy umbrella or pineapple slice. Blueberry pie has nothing on the iPhone. I'd take a big honking piece of pie (even with nasty Cool Whip Lite) any day.

sreese_26 - The guy who wrote this article is human, and thus prone to error (which will be corrected). Thanks for pointing it out and good luck with infallibility. - The Guy Who Wrote the Article

Blackberry has got nothing on iphone until they get a full fledged browser with flash and everything and a way to click on graphical features of a page like freaking cursor or a touchscreen. Get a clue (or firefox) for crying out loud.

Test I Phone

The App store just opened. There will be more applications in the futures. There will be over 1,000 applications by the end of 2008 and more later. TomTom is coming out with a turn-by-turn software for the iPhone GPS but it is not out yet. Business applications will get businesses to buy the iPhone. It is up to the imagination of the software developers. The game industry, which has become a multi-billion dollar industry, all want to develop games on the iPhone. A hit game will make the iPhone a must have.

The problem is AT&T. The problem is AT&T. The problem is AT&T. Get it, Apple?

you crazy american consumer by all our junk...it give you somthing to sell for gas money later. why you not send all money now, I give you rice to eat next year instead of your credit cards

Great article Aaron, like seeing both sides of the iPhone story. But my question is, are you going to pick up the 3G iPhone? -- Current AT&T subscriber (not iPhone though) & Mac AND PC user here, so no bias on either choice of your take on the iPhone.... surprising on these forums isn't!?

We live in a State that AT&T does not operate, so we can not get the iPhone. Sure we can get it from a neighboring State, but, last time a friend of ours did just that, AT&T cut off his service when AT&T realized he had too much roaming! and our friend got stuck with a usless iPhone, what a bummer! What's AT&T's plan about covering ALL the States?

I bought an I-phone a month ago, and it was refurbished junk. Luckily, Apple gave me a better one. I can't understand how the volume has not been upgraded (my 1999 cellphone was louder than this), and why the battery gets drained so much, and is not servicable. To top it off, I agree, AT&T's reception is HORRIBLE, so now I'm getting more dropped calls than when I was w/ SPRINT. You wait 9 years thinking you're getting a top notch product, but it's really just a snow-job. Also, the camera is decent, but c'mon', for typical 4x6 pictures you need about 3 megapixels, not 2. Features like Stocks, Maps, weather, calendar, etc. - why add these? YOU HAVE INTERNET ACCESS FOR ALL OF THIS GARBAGE. Now, applications/software - I can see the need for this and revenue models. But for God's sakes, none of this stupid facebook type crap of sending stickers, love hearts, worthless superhero apps., etc.

I bought an I-phone a month ago, and it was refurbished junk. Luckily, Apple gave me a better one. I can't understand how the volume has not been upgraded (my 1999 cellphone was louder than this), and why the battery gets drained so much, and is not servicable. To top it off, I agree, AT&T's reception is HORRIBLE, so now I'm getting more dropped calls than when I was w/ SPRINT. You wait 9 years thinking you're getting a top notch product, but it's really just a snow-job. Also, the camera is decent, but c'mon', for typical 4x6 pictures you need about 3 megapixels, not 2. Features like Stocks, Maps, weather, calendar, etc. - why add these? YOU HAVE INTERNET ACCESS FOR ALL OF THIS GARBAGE. Now, applications/software - I can see the need for this and revenue models. But for God's sakes, none of this stupid facebook type crap of sending stickers, love hearts, worthless superhero apps., etc.

I was too late going to pick up my new iphone this morning.. guess I will have to wait until the frenzy dies down a little... haha