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Can the BlackBerry Storm Kill the iPhone?

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I saw a post entitled “Why BlackBerry Storm Is An iPhone (and G-1) Killer” and thought it needed a rebuttal. The post makes some very salient points on how it’s a good device, on good carriers, app store coming, etc. All good points. Now let me explain why I think those points are utterly irrelevant.

The iPhone (which I don’t own, for the record) is not compared to the BlackBerry on the same terms.  It’s not a portable email device, and it doesn’t want to be one.  To compare the two devices its more important to think about the decision-making that goes in to buying either device.

Business buy BlackBerries.  They will continue to do so.  Few businesses buy iPhones, this too will likely remain the same.  Accordingly we don’t need to take enterprise purchasing into account, as this market makes purchasing decisions based on price, security, integration, etc.  What we’re really talking about here is consumers.

Consumers who buy luxury goods are not buying things based on cold-hard fact comparison.  If you drink Grey Goose vodka or use Kiehl’s skincare products or purchase Infiniti cars, odds are pretty good you do a lot less “comparison shopping” than you do when buying mainstream products (btw, for more on this I recommend reading “Trading Up“).  The iPhone clearly falls into this category, people buy it for reasons that have little to do with technical specifications or even feature set (heck, they sold almost 8 million units before they launched the app store).

The iPhone has further achieved success because, frankly, it’s an amazing product (despite its inability to do video recording like my good ol Samsung UCH-740). It’s one of the best phones, best MP3 players, and overall best gadgets you can buy.  It doesn’t matter if the BlackBerry does “somewhat better” in almost any category, whether it’s web-surfing, email, or downloadable games.  Being “better” is far from good enough to beat the iPhone.

A recent survey showed that 22% of teens wanted an iPhone.  I don’t think these same teens are even remotely close to buying a BlackBerry (you know, like Dad uses at work).  There’s no sex appeal to the BlackBerry brand, and building a great device isn’t enough to turn it into a sexy one.  Just ask the HTC G1/Android phone that question (that thing is enough to make Nokia phones look sleek!).

The BlackBerry Storm seems like it’s going to be one heck of a BlackBerry.  Best one ever, no doubt.  Probably the best portable email device ever made.  And they will probably grab a good chunk of the existing BlackBerry market.  But kill the Iphone?  That gun’s not loaded yet, and it would take RIM years to create the combination of product/brand positioning to come even close.

Liberal Media Deals In Lies: NYT Rewrites iPhone History

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The NYT feeds the Android/T-Mobile hype machine with a fairly tepid press-release-dressed-up-as-an-article, but this utterly craptastic piece of “analysis” cannot go unchallenged:

Apple’s iPhone has shaken the cellphone industry, partly because of its design, but mostly because AT&T and Apple have allowed owners to download any number of applications to their phones. That freedom to individualize a phone’s functions has helped increase the popularity of the iPhone.

Ummm, NO! Sure, the iPhone shook the celphone industry despite warnings (like this one from Palm CEO Ed Colligan) that making phones is hard and “PC guys are not going to just figure this out. They’re not going to just walk in.” But the iPhone launched without extensibility or third-party apps.

The iPhone began life as a closed platform. In January of 2007, Steve Jobs said “You don’t want your phone to be an open platform”. There were always plans to open the platform up, but for the majority of the time iPhones have been on this earth, if you wanted to put new programs on your iPhone, you had to jailbreak it. It wasn’t until recently, after a great deal of fear, uncertainty, and drama, that the iPhone platform was opened to outside development.

To say that the iPhone shakes the industry “mostly” because of its extendibility is demonstrably false. It shakes the industry because its a well-designed, well-integrated product in a market sector that’s gotten away with producing staid, nigh-unusable garbage for way too long. Which is why the article in question is so offensive – there’s plenty of opportunity for Google/Android ahead, and tons of other areas to focus on the notion of customer freedom. Why force-fit this story about the iPhone when it just isn’t needed?

Here’s to hoping that Google’s introduction of the Android platform will provide Apple with a worthy competitor—and push the industry to develop 21st century phones.

Missed Connection: Seat 8B

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The “missed connection” was invented by Craigslist as a way for two people who “met” somewhere, but were unable to actually exchange names, phone numbers, or emails. They tend to go a little something like this:

You were the cute Asian girl with a beer standing by the side of the stage. I wish I had introduced myself because think you were there by yourself. You caught me looking at you and smiled. Hopefully you’ll see this because I’d love to take you out for a drink.

I had an interesting moment last week on a flight, and I thought I’d do my own little “missed connection” despite the fact that I made no effort whatsoever to get any contact information from the individual at hand. But that’ll probably make more sense by the time you get to the end of this. I may even cross-post this on Craigslist, just for funsies.

United Flight xx, Seat 8B

You were the middle aged guy who pulled out your iPhone as we were on final descent. I was the guy sitting next to you who politely asked you to put it away while we landed. You may recall looking at me with disgust and putting your phone away while telling me to mind my own business. I did assert that it was “my business” since you were taking an action that put my life in jeopardy (well, maybe, but I’ll get to that later), and proceeded to loudly say “thank you” over and over at me until I raised my voice above you, and with a menacing glare said “you are welcome.” You turned away, probably realizing you weren’t really too sure about the guy a foot taller than you who looked like he had had enough of your childish behavior.

I was really quite surprised by the incident, especially considering I was polite, and asked you to turn it off while smiling. Since you were in business class with me, and sported the iPhone, I was under the assumption that you, like myself, might be a frequent business traveler. I was also surprised by your retort of “it’s in flight mode”, considering every flight you’ve ever flown has similarly had you turn off all electronic devices upon descent.

Now I think we are probably in the same boat: it seems so ridiculously unlikely that you and your cute little phone could possibly wreak havoc on an airplane. I mean really, how on Earth could that happen? Seems crazy. But yet, they have this annoying rule, and it’s imposed by the FAA, and well, I guess since I don’t work for the FAA and I don’t know all that much about landing planes myself that I’m going to follow that rule. I’ve even gone looking around the Internet for a “fact” to prove the FAA wrong, and, well, bummer, I couldn’t find one (although there’s a lively discussion a Mythbusters fan site and this article is good too). So until someone changes that rule or disproves the FAA, I’m going to keep following it, because, hey, knock on wood – it’s worked for me so far (100% landing rate, FTW)!

Which brings us around full circle to you – did you have an email you were waiting on that you felt was more important that, say, a safe landing? Again, even against infinitesimal odds it seems like there are very few emails that could be worth it, right? And even so, you’ve made it for almost 6 hours already, what could have happened in that last 4 minutes? Really, we were on the ground a mere 4 minutes later!

So I’ll end my letter to you, fine sir, with the request that you consider the world around you a bit more thoughtfully. I know you are clearly a Very Important Person because, after all, you do own an iPhone and sat in business class. You must be extremely busy with work, because you were willing to endanger us all just to see what emails may have arrived on a Friday night after work hours were done on this continent. I cannot stand on solid ground and assert for a fact that your phone would (or would not) cause any interference with the airplane’s landing systems – but then again, you cannot prove the opposite to be true, and all things considered, I’ll take my safety over your email any day of the week.

In short (too late), just stop being such a grade-A moron, the world already has enough of them.
<end of rant>

What if Apple invented and sold the Segway?

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Steve Jobs on SegwaySo I was walking around Downtown Chicago last weekend, the very same weekend Apple pushed 1 million iPhone 3G units out the door, and saw a police officer stroll by on his government issued Segway, which got me thinking. What if the on-top-of-the-world tech giant invented, marketed, and sold the Segway today. Would Apple be able to push the 50,000 to 100,000 units out the door that Segway Inc. expected to sell in its first year of sales? I think the answer is 100% yes. Well, maybe 90%.

-Design Design Design
Apple has a knack for taking products to their limit of how good they can look. When Steve Jobs got a first look at the Segway back in 2003, he said, “Its shape is not innovative, it’s not elegant, it doesn’t feel anthropomorphic.” (For those of us that needed to look up that word: anthropomorphic adj. – resembling or made to resemble a human form.) If Jobs and his designers were to design the Segway, it would, for sure, be better in those three areas. Of course there would be a snazzy placement of a light up Apple logo, causing all the Apple lovers to eat it right up.

Also, the most important design & production point, Apple would be able to get enough of a mass production discount to keep the cost of the device down. They would shoot to have these priced at $2,999.00 (or as low as $77.00 a month). Crossing that $3,000.00 price point, for the base unit, is too scary for consumers.

-Bandwagon
With the popularity of Apple now, and the way people are eagerly handing over their credit cards for anything with an Apple logo on it, they would easily be able to push 100,000 units out the door in a year. I know some of you are saying, “Hey don’t push that overzealous bandwagon theory into this argument, everyone that buys an Apple product knows exactly what they are buying!!!” Well let me present to you this sample dialogue told to me by my co-worker that was waiting in line for his iPhone 3G.

20 something woman waiting in line, gets approached by what is assumed to be her mother.

Mother: What are you waiting in line for?
Daughter: Oh this new Apple phone. It’s cool, its got a touch screen, plays MP3, it’s really cool.
Mother: Really?! Maybe I want one of those too!
Daughter: Yeah, you should get one! Wait with me!

Woman and her Mother wait in line. An Apple associate comes by to answer questions.

Mother: What’s the deal with this phone?
Apple Associate: Ma’am the Apple iPhone is the most advanced cell phone on the market now, it has fully integrated PUSH email, calendar, and contacts. Along with real web browsing, an app store, and now integrated GPS.
Daughter: Oh really?! GPS, I had no idea it could do ANY of that!
*(Words are approximated, but idea is the same – Thanks Dave)

This was probably a common occurrence within the lines and lines of people waiting for the iPhone.

There are some of you saying, there are plenty of Apple products that Apple sells that don’t reach the numbers you are talking about. You are correct, but with the iPhone-like hype the Segway got when it was originally announced, Apple would be able to quickly turn that hype into sales. They have built up a well enough rapport with consumers, that as long as there is a line to get it, a cool factor, and an Apple logo on the side of it, people will shell out the cash/credit for it.

-Marketing is King
Apple is a marketing juggernaut and would have to assert its dollars in this area in order to make this product sell. They would saturate the movie and television market, making it look like everyone in our society uses a Segway on a daily basis. With the right ad campaign, they would be able to make everyone in the world think they were morons for wanting to walk anywhere. Commercials, billboards, and subway cars would all be screaming at us, “Soon there will be 2 kinds of people. Those who walk, and those who walk different.” Other ads will be telling us to purchase this new transportation device because, “It just goes”.

With the skyrocketing fuel prices, and the big push for “Being Green”, electric powered transportation is the “new black”. (Ironically, all of Apple’s successful gadgets come in black!) Apple would need to leverage this in their marketing and let people know, “Not only is this the coolest gadget IN the world, it’s the coolest gadget FOR the world.” A perfect example of this is the Honda Civic Hybrid. The Civic was already one of the coolest cars for teens and 20-somethings. But make it “Green”, and you got yourself a car that you have to get on a waiting list to buy.

Whether you agree with me or not, it seems like something just might be a brewing on this front, since on July 7th, the former CTO of Segway, Doug Fields, left to join Apple (JT: maybe this new hire has to do with the unknown “future product transition”).

Hopefully Fields can get this project on a roll. I know I speak for most when I say that we are just so tired of walking everywhere, and we don’t want to look like the biggest nerds ever, on a non-anthropomorphic Segway.

The iPhone 3G proves that there is no economic downturn

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$4 gas (in the northeast, anyway), bank collapses, sluggish economic growth, pundits predicting recessions, bear markets, $140 oil, $900 gold, rampant foreclosures, and a plummeting dollar!

Oh my.

But for those of you quaking at the specter of Depression, or waiting in line at a California bank to retrieve your hard-earned cash (where you are reading this post on your 3G-enabled mobile device, natch), or those who are convinced that their money is surely safer in a mason jar under the mattress than an FDIC-insured institution, let me offer these comforting statistics:

Don’t read this as an indictment of the people who stood in line. I’ll happily admit I know these wait times because, in my desperate need to 3G-ify myself, I made no fewer than five calls to various Apple stores over the weekend, even stopping by one on the way to the beach on Sunday to see whether their line was less than ten hours – it was, at a mere four, but they had capped the line because lucky Mr. Minute 240 represented the last phone they had in stock.

Folks, there is nothing to worry about. Our gadget-driven economy has never been stronger. As long as we fanboys can find both the scratch and the time, including taking a day off from work(!), to queue up by the sweaty thousands for a shot at the latest shiny bauble (OK, mobile communications device with blazing fast TM internet access, location-awareness, and a shiny, shiny interface), we can find a way to ensure tha the American economy remains a juggernaut. Jeremy posited that Apple is really the only company that can do hype right, but I don’t think he’s taken it far enough. Buttressed by Jobs-obsessed tech acolytes like you and me, the company has the ability to single-handledly (multi-touchedly?) drive the consumer engine of this great nation until our worries of collapsing mortgage giants and $100 fill-ups are things that we tell to our kids via a Sling application running on the latest 5G Apple iBrain.

But first things first: can someone give me a ride to the Apple store? I’m kinda short on gas money these days.

The "Hidden" Costs of an iPhone?

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Hi, this is David Speiser.  I’m going to be contributing to LD on occasion.  I’d love to hear your comments and opinions.  Please feel free to say hi, and tell me what you think.

Today I’m thinking about the cost of a new iPhone 3G.  Many people were astounded by the drastic price reduction Steve Jobs announced at the 2008 WWDC.  $200 for an iPhone with 3G data speeds and built-in GPS?  Sweet.

Since then however, many people have cried foul.  Or at the least they’ve discoursed on the hidden costs of the new iPhone, specifically charges for data service.  Anthony Ha at VenturebBeat covered this issue regarding the actual cost of the phone over the lifetime of the mandatory 2 year contract.  Anthony and MG Siegler also note the increase in the cost of text messaging.  About THAT part I agree with them.  It is uber-lame to charge so much for texting, especially when it’s so cheap to do.  Walt Mossberg also offered up a review at All Things Digital.  One of his less positive comments was in regards to battery life.

What I want to say is this: I don’t think these “hidden costs” are hidden or inappropriate.  And I’ll tell you why.

First, there’s the data costs.  Yes they’re higher.  But you know what?  We’re probably going to be transmitting a LOT more data than we used to.  Personally I will be using email much more often, both to read and to send, now that the speed is more functional. I also expect to make more use of the web browser since websites should now load at usable speeds even when not connected to WiFi.  All that data transfer is going to cost more money, so I think it’s sensible to charge more for the data plan.

Also, and this is not a scientific test, but it makes sense to me that if Walt was using the device to check email and browse the web more (and faster) than was possible with the G1 iPhone, then the battery is going to exhaust more quickly.  Did you ever notice that if you’re mousing and typing a lot on your laptop when you’re running off the battery, the battery drains more quickly than if you leave it sitting alone or mostly just read emails?  Same deal applies to the phone.  If you’re leaving it in your pocket a lot of the time because the web browser’s too slow, you’re going to save a lot of juice and make it through the day on one charge. If you’re checking and sending more email and visiting more websites because you can, the battery will drain faster.  Now I believe that 3G data activity also affects power usage differently than Edge data activity, but my point remains.  If you’re using the phone more, you’re going to drain the battery faster.

Now don’t get me wrong.  I’d prefer that the cost for the data plan remained the same.  Heck, I’d rather it was cheaper, or free.  And I’d love a longer battery life, infinity + 1 if I could have it.  But I can’t.  And I don’t think these costs are hidden or inappropriate.  To me, the pretty much make perfect sense.