News
Survey suggests interest in ‘iPhone’
Research firm Piper Jaffray recently conducted a 200-person survey that shows unsurprising interest in an Apple “iPhone.” The firm said in an in-depth report provided to iLounge that the hypothetical product would be capable of serving as both an iPod and a cell phone, and be manufactured and branded by Apple (different than Motorola’s upcoming line of iTunes-compatible mobile phones). On average, the respondents said they would pay $255 for such a device.
“We believe a normalized interest level of 18% is enough for Apple to be considering such a product,” said Piper Jaffray senior research analyst Gene Munster, noting that the phone market is 13x larger than the MP3 player market. “We believe Apple has a powerful brand that can be applied to markets not yet addressed. If Apple executives are tuned into the strength of the Apple brand, we expect the company’s target markets to expand in the years ahead to capitalize on its namesake.”
Piper Jaffray wireless technologies analyst Mike Walkley believes that Apple could enter the mobile phone market through an Original Design Manufacturer (ODM) relationship and use a Mobile Virtual Network Operator (MVNO), but said “it will take time for the company to design products, strike deals with the wireless carriers in order to sell the products, and finally get the products approved on those networks.”
“An MVNO typically does not have its own network, rather it purchases minutes from traditional carriers and resells them to its own customers,” explains Walkley. “Virgin Mobile is one of the most successful MVNOs in the U.S. due to its unique focus on music and ring tones. Apple could build on its iTunes success as a MVNO… Assuming Apple has not started to work with an ODM or started to work on entering the mobile phone market, we believe it could take roughly a year to 18 months for Apple to potentially enter the market.”
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1
Out of 1777 votes so far in the iLounge iPhone Poll, a total of 68% have either voted they don’t have a need for a cell phone with music capabilities (54% (953)), don’t have a cell phone and don’t want one (6% (100)) or just No, for any other reason (8% (137)).
Posted by Bob Levens in UK on September 6, 2005 at 12:07 PM (PDT)
2
I’d buy a phone with an Apple designed interface just not to have to use most cell/mobile phone OS’s.
My current SonyEricsson requires 8 seperate confirmation & selection clicks from finishing composing a text to actually sending it. Application of the iPod principle of “3 clicks to anywhere” could radically improve this.
It’s my personal belief that most cell/mobile interfaces are designed by people with a vendetta against the human race.
I really could care less about music playback and/or iTMS integration; my iPod is irreplacable on that front.
Posted by Brenster on September 6, 2005 at 12:21 PM (PDT)
3
Who are these 200 people? Apple or Motorola employees? Everything I’ve read about the want/need for the “iPhone” has overwhelmingly been AGAINST it, including the MacRumors website. The poll results from iLounge also clearly indicate that the public isn’t really interested in an iPhone.
Posted by Parrotthead Phan on September 6, 2005 at 1:26 PM (PDT)
4
I agree with Brenster. I believe that Apple is promoting the “iPhone” by riding the digital music wave at the current moment. While this phone will play music, I don’t believe the main attraction will be its music toting capabilities. As Brenster said, the iPod has a 3 click principle and this is what separates it from other music players (besides from the fact that the iTMS synchronizes with it without even the slightest problem.
The cell phone has become a staple in the digital lifestyle for nearly everyone. Due to the incompatibility of cellphones to any iApp, Apple currently only tackles your digital lifestyle while you are behind your computer. By promoting a simple interface, connectivity to other iApps, and allowing a user to choose whatever ringtone one can imagine will be what makes the iPhone a success, if of course Apple had the privilege of creating the interface. Otherwise, yes, it will be a dud.
Posted by Ryan on September 6, 2005 at 3:12 PM (PDT)
5
If motorola is producing the phone then it is going to be garbage. The OS on motorola’s are not user friendly and along with phone use and playing music, the battery won’t be able to handle any of this. With newer phones like the sony ericsson s700/710 it can play mp3 and use songs from your itunes. Just push up on the arrow pad and it goes straight to your songs. However, they are not organized like your iPods playlist, but it works.
Posted by yungwun on September 7, 2005 at 1:12 AM (PDT)
6
You’re not reading this right - obviously no iPod owner is interested in an iTunes phone because you’ve already got a iPod!
The global market for mobile phones is around 700 million a year against Apple’s global sales of something like 20 million iPods a year. If only 10% of new phone buyers choose an iPhone, Apple just trebled its market penetration. If those same 10% choose a Windows Media Player music phone then the chance of Apple subsequently selling them an iPod are significantly reduced so they are playing for high stakes with this one.
Posted by Andrew Cowie on September 7, 2005 at 3:39 AM (PDT)