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Assessing the iPhone One Year After Launch
Wednesday, June 25th, 2008 at 4:00 PM - by .(JavaScript must be enabled to view this email address)
One year after the iPhone was launched and after 6 million sold, Apple has learned a lot about the industry it has changed forever, according to Tom Krazit at C|Net on Thursday.
"In just a year, the iPhone has had a clear impact on the way smartphones and mobile software in general are now designed, and has raised consumer interest -- especially in the U.S. -- in the concept of truly mobile access to the Internet. But Apple has struggled to find the right price for the iPhone, manage its supply chain, and limit the ability of hackers to get total control over the iPhone," Tom Krazit wrote.
Mr. Krazit highlighted the significant events of the iPhone, from its frenetic launch, long lines, then the public relations disaster of lowering the price from US$599 to $399 just 10 weeks after launch up to the serious underestimation of demand for the iPhone 2G after the holidays. As a result, "Apple will not have sold a single iPhone during the last six weeks of its first year," Mr. Krazit noted.
One of the key aspects of the iPhone product during the first year has been how Apple has learned to cope with pricing plans and customer response in various parts of the world. When the current economic climate in the U.S. is rolled into the equation, Apple (and AT&T) have had to figure out a new way to both price and sell the iPhone 3G.
Finally, the author looked at how the iPhone has changed customer perceptions about how a smartphone should function and how it’s changed their lives. While competitors are gearing up, Apple still seems to hold the high ground on software design and UI appeal.
"That’s amazing progress in a year from a company that had never participated in this market before," Mr. Krazit concluded. "... And Apple will definitely play a leading role in the definition of that market over the next several years, having earned the right during the first year of the iPhone."
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