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News flash: 3G iPhone not needed...in the US E-mail
by Stan Beer   
Thursday, 17 January 2008
Apple loyalists in the US, bless them, you've got to love their logic. After jumping on me for daring to suggest that Apple has disappointed many of its fans around the world by failing to deliver a 3G iPhone, one of the shall we say more loyal organs of the Apple watching media - MacDailyNews - believes that a 3G iPhone is not necessary yet because most of the US doesn't have 3G coverage.

Update: The iPhone 3G has launched! Full details here.

Original story follows:

First up, MacDailyNews joined the throng of Mac loyalists in picking in me up on an error I made in a recent article in which I suggested that Apple may be behind its sales target of 10 million iPhones sold in the first year, having sold only 4 million in the first 200 days. Actually Steve Jobs said at Macworld 2007 that Apple's aim was 10 million iPhones sold by the end of 2008 - which would put Apple well ahead of schedule.

However, I also remember Jobs saying in the same breath that Apple's intention was to capture 1% of the 1 billion annual global mobile phones market. In order to do that, Apple would have to sell 10 million iPhones in a year, no?

Regardless, MacDailyNews believes a 3G iPhone doesn't make sense because 3G chipsets are still too power hungry for the iPhone's (non removable) battery and: "most of the U.S. (where most iPhones are currently) doesn't have 3G coverage (meaning a 3G iPhone would be sucking battery life while connecting to slower 2.5G towers anyway)." Well! For once in my life, I'm almost speechless - I said almost.

So let me see if I can unravel this reasoning. Despite having launched the iPhone more than two months ago in Europe and the UK, where 3G networks are ubiquitous, a 3G iPhone doesn't make sense yet because it wouldn't suit US users. Hmmm. So in Europe, where it is possible to get mobile data speeds of 3.6 Mbps or even 7.2 Mbps on 3G networks, iPhone users should content themselves with a maximum of 180 kbps using EDGE because the US, unlike the rest of the developed world, isn't ready for 3G yet?

Hello MacDailyNews, there's a reasonably big market for mobile phones outside the US. In fact, in sheer numbers of mobile phone users Europe is probably a fair bit bigger than the US. It's certainly way more advanced in the mobile space.

I am not surprised that there have been steady stream of reports of sluggish iPhone sales in Europe with slow network speed being cited as one of the key inhibitors to user take-up. Equally, I wouldn't be surprised if iPhone sales absolutely explode on the Continent when a 3G model hits the market due to pent-up demand. Unless, of course, there is some other reason for the slow take-up in Europe - Apple's pay up front sales model has been suggested - but I don't believe that's the case because the iPhone plans seem well priced.

And of course, MacDailyNews took a stab at 'lil ol' me for daring to suggest that 3G is one of the two most requested products from Apple, calling me the self-appointed stand-in for all Apple customers. Then in the next sentence, MacDailyNews says: "If you read tech articles all day long (and we do), you'd think that a 3G iPhone is the holy grail...." I certainly don't consider myself a stand-in for anything but guess what, over here at iTWire we read tech articles all day long too. Except the message I'm getting is that a 3G iPhone is not the holy grail but it's definitely what users want - at least users outside the US.

Since MacDailyNews finishes its critique of my article by posing a question which was already answered, I will attempt to make myself crystal clear so that even the most parochial US Apple loyalist is not in doubt. I do believe that the iPhone when it was released was a perfect example of what can be achieved if a company listens to the needs of its customers. However, what customers wanted last November at the time of the European launch and still want now is a 3G version - and yes a better battery.

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The Beerfiles IT BLOG BeerFiles is an in-your-face and sometimes irreverent blog concerning all things to do with IT, technology, people and the media from the point of view of a hard boiled technology journalist and commentator.