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Marginally better than expected.

But certainly worse than what I hoped for. The iPhone 3G is a marginally improved device that builds upon the very solid foundations of the first iPhone by adding 3G connectivity (though without the video conferencing part) and version 2.0 of the software and does this at a significantly reduced price — which is probably the highlight of the keynote. It’s also available in many more countries, including Hellas.

While I may get my hands on one pretty soon, I still think that the Nokia N95 is a superior device in many ways, and one that’s mostly hurt by the vastly inferior (from a usability point of view) application software stack. The new iPhone seems like a buffer solution to the consumerism that brands the original as ‘old’ and whose price and attractive featureset, augmented by a software ecosystem, wider availability and faster network performance are certainly going to serve as catalysts while it becomes a(n even more) mainstream product and expand Apple’s market share in this difficult market. That is, until a much evolved model appears in 12-18 months from today.

Update: I’ve already read several comments about the contract prices in various countries; it’ll be interesting to see how this plays out in Europe and especially in Hellas, a country where mobile internet access costs about 70% more than the US. If 3G access is forced onto consumers buying the iPhone (which it will), the adjusted $199-$299 price points won’t make a difference to people — especially if the contract means a monthly cost higher than €30.

Update 2: It is now blatantly clear that the price reduction, even in the US, is marginal at best; the new contract coupled with higher prices for data connectivity make the new iPhone cheap to buy, but expensive to maintain.

4 Responses to “Marginally better than expected.”

  1. Mark Papadakis says:

    I am extremely satisfied with the new iPhone. There is no single feature I would wished for that didn’t make it ( all I actually wanted over the existing iPhone, which I love, was a GPS unit built into the device ), save perhaps the video conferencing functionality — a novelty I would rarely use but would certainly be cool to have. Its a no brainer that its going to make it to the next refinement/revision of the iPhone though. All in all, I can’t wait to get my hands on this amazing piece of engineering and design and, hopefully, get some time off to finish off my silly iPhone app.

  2. cosmix says:

    Mark, thanks for the comment. I agree that — as things stand right now — it’s a pretty compelling offering. Still, Apple is known as an innovator; the new iPhone is an excellent product, a great (marginal) upgrade and given its price point and amazing offer, but its still underwhelming in terms of innovative features compared to its predecessor.

    Right now, the only thing that truly concerns me is the price of the phone in Hellas (assuming that, contrary to Schiller’s statement, the $199 and $299 prices are not going to hold globally) and — last, but not least — the price of the contract they accompany it with.

    Good luck with your app.

  3. Kostis says:

    The big news today was actually price. At $199, there’s no way you won’t see them crop up everywhere soon, in the US at least. Practically every iPhone hold-out I’ve spoken to today is confident they’ll buy it as soon as it comes out.

    For shareholders though, the end of profit-sharing is a bit sad and greatly reduces the potential of the iPhone (as a profit-making machine, not a gadget).

    Finally, regarding your complaints re: innovation Cosmix, as I’ve told you before and I think you agree, most people would happily trade a couple of innovative features for the proper app ecosystem, user friendliness, and ease of use; and on those aspects, as you mentioned, Apple beats them hands down.

  4. cosmix says:

    @Kostis: The new iPhone — as the iPod before it — lays the foundations for a pretty strong position for Apple in the near future and while not as profitable as its predecessor (40% markup + profit sharing) it’s probably the wisest business move Apple could’ve possibly made given the current market and the iPhone’s strengths and position compared to its competition.

    Last, but not least: there are no complaints here; as a technophile I would’ve hoped some more technical innovation than what was announced, but who wouldn’t? In addition, we never discussed the potential features of the new iPhone before; I don’t disagree at all with your comment above, although it’s quite entertaining with its pretence and quasi-demagogic tone. Ironically, you are missing both the tone of the my post and the point I’m making wrt innovation. Hint: It has nothing to do with people, business or products.

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