Why every "iPhone killer" misses its mark
Every few weeks it seems like we hear of an iPhone "killa". Palm just announced its Pre. Blackberry, Google, Nokia, HTC, Samsung all have theirs. But as the Toyota commercial suggests "when all the competitiors compare to our trucks, consumers say - why not buy the original?"
The problem is all these new phones just try to out-feature the iPhone - with a better camera, a modem or "cut and paste" functionality.
None of them has gone after the iPhone's Achilles Heel. Its large TCO thanks to AT&T.
If Palm or whoever is really, really serious about challenging the iPhone, it needs to knock some sense into the carrier it partners with. To offer much more compelling plans ( at least 50% better). And control the carrier's tendencies to add all kinds of add-ons and fees. And then show it crisply in its advertising and customer surveys.
Till the iPhone came along, few device manufacturers had been able to dictate much to the telcos. To compete effectively with Apple, its competitors need to similarly start dictating to their carriers.


Good point - although I have to say that usability and functionality are still important. How does the TCO climb if users are only using a fraction of the functions because it's a dog? (Still loving my iPhone by the way, but that Pre looks intriguing...)
Posted by: Richard Young | January 12, 2009 at 01:54 PM
Vinnie, As usual you're spot on. One great example is Verizon disabling WiFi on the BlackBerry Storm. It makes no sense...
Posted by: John Sun | January 12, 2009 at 03:18 PM
Just as the 1984 Mac was light years ahead of command-driven PCs, the iPhone has no real competition. This time, almost no un-learning curve; the iPhone has enough power; and as you point out, it is the standard.
Also, Jobs understands negotiation... can you say iTunes and 99cent downloads? Just one more piece of the puzzle that eludes mere mortals.
-ski
Posted by: Jeff SKI Kinsey | January 12, 2009 at 09:53 PM
Jeff, sorry but when history is written Steve Jobs will be remembered as having shaken the music world - but having caved in to the telcos.
The iPhone is a gorgeous phone but his customers have voted with their dollars when a large number refused to turn on AT&T with the initial 2G came out, and in this recession many 3G customers, will reduce or cancel their AT&T plans.
Lots of Jobs fans refuse to see it, but the customer stats do not lie.
Posted by: vinnie mirchandani | January 12, 2009 at 10:01 PM