| iPhone - the Paris Hilton of mobile phones? |
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| by Alex Zaharov-Reutt | |
| Friday, 05 December 2008 | |
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Saying there is “little doubt that Apple has created the Paris Hilton of mobile phones”, as it is a “seemingly beautiful product on the outside”, Strand asks “what is actually inside and how good is the iPhone for operators that partner with Apple?” Saying that it is “not in the business of creating hype around technology”, and explaining that its “business is to explain to mobile operators how the future market will evolve and how to make money for their shareholders”, Strand says it believes “a number of operators ought to focus a little less on the iPhone and a little more on their shareholders.” Strand says that over “the past year, our CEO John Strand has held many workshops at CxO level for operators across the world that have requested qualified information on the future mobile market and how it will develop.” It notes that “one of the subjects that often emerges during these workshops is the iPhone and its role in the mobile industry in the short, medium and long term.” Strand has decided to “publish some of the conclusions we have reached and we hope that you can use our views in the future iPhone debate”, and offers the following 10 points: “1. The iPhone attracts a limited market segment, Apple's goal was a global market share of 1% and on some markets they have achieved even higher results. But despite this, the iPhone is not a mass-market product; it is a product that attracts a niche segment.” Hmm... with the iPhone now No.2 in the US, I wonder how true Strand’s statement is in the iPhone only attracting a “niche segment”? I personally don’t feel very niche. Maybe I am... “2. Operators that have partnered with Apple have spent an incredible amount of management resources on the iPhone. “If you examine the time spent on this product, launching this product and discuss all the limitations Apple has imposed on the operators, you cannot help but notice how the customers have been overlooked during this period. “If an operator moves a large part of their focus to a phone that is attractive to less than 5% of the market, they are forgetting the 95% of their customers that are creating the cash flow that is the foundation of an operator's profit for their shareholders.” More of Strand Consult’s views on page 2, please read on. |
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