Apple iPhone
December 12th, 2006
Rumors and analysts alike are foretelling an upcoming Apple mobile phone offering. What does Apple have to gain from entering the constantly evolving mobile market?
As a recap, here’s a time-line of various links and “information” available on the Internet.
- Pre-Thanksgiving, CNBC interview with rumor sites (video).
- Last week – Business Week article about wish list.
In my mind there are a couple reasons why Apple might pursue a mobile product line. First, Apple has always been a proprietary company. They maintain control of hardware and software, which allows them to control many of the variables when it comes to satisfying consumers. You like it or you walk. I’m a huge Apple fan, and I hate to admit that the market share they have now reflects the decision to maintain control in the 70s when computers were young. One thing Apple needs to learn is that control is an illusion – especially when you’re trying to satisfy multiple carriers and throng of tech-hungry mobile consumers. Managing a mobile phone offering will stretch Apple’s consumer relationship. This is growth from which I think they can benefit.
The second reason this makes sense for Apple, the growing mobile market means more sales. The iPod is already one of Apple’s most popular and profitable products. Steve Jobs recently stated that consumers might expect to purchase a new iPod every year to keep up. This may seem like a bold statement, but most of the people in my technology-based office get a new mobile phone almost every year – and they easily cost the price of an iPod. Maybe Uncle Steve is onto something? He’s linking his cash cow with a market with an enormous and emerging potential.
January 9th, 2007 at 4:28 pm
[...] Why would Apple want to release a mobile phone? Steve announced the reason and the phone today, “957 million mobile phones sold last year… 1% market share is 10 million phones.” [...]