Verizon Wireless passed on iPhone two years ago

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It's not a huge deal

The iPhone will sell very well, but it probably won't be
the determining factor in establishing who is number
one in the mobile market over the next two years. Too
many new customers will want a very cheap phone, or
will want a business oriented phone - and that's not the
iPhone.

Where the iPhone will do well is with the iPod consumer
market and that is why Apple wants to control sales of
the iPhone. The last thing they want is the iPhone sold
at a large discount, which would erode the iPod market.

This will be especially important if Apple delivers an
iPod that is like the iPhone, but without the phone part.
That would be a rather powerful seller and Apple wants
to protect the price point.

The end result is that Cingular will have the iPhone,
which will draw customers into their stores. Some
customers will go for the iPhone, but more will just sign
up for a cheaper phone. Cingular will be happy either
way.

There will also be an increase in traffic at the Apple
Stores, providing the customer with an opportunity to
see Apple's other product, like iPods or Macs. Apple will
be happy with this as over half of their Mac sales are to
customers who were PC users.

Posted by: Ken_z   Posted on: 01/29/07 You are currently: a Guest | Members login | Terms of Use

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