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The Apple iPhone Reality Distortion Field

by Ewan Spence

Russell has presented the Strategy Analytics consumer report on the Apple iPhone, and I’m not at all surprised that the iPhone has come out as a better phone, even though nobody in the survey will have actually tried out any of the features on the iPhone. So straight away the survey is flawed in showing the iPhone is better.

What it has quantified is just how much of a reality distortion filed (ie hype) surrounds anything coming out of Cupertino. From 7% of people thinking it will make better phone calls, right up to 35% better at doing music (although I think that one is fair, given this is a video iPod with a phone circuit, not a phone with a a/v circuit). I’m also raising an eyebrow at the 35% better at web browsing – considering the Nokia S60 devices use the same web core fundamentals as Safari does that’s a rather arrogant number.

Of course Apple are packing in a lot of new technology into the iPhone (such as the multi-tap screen), but the area where it was not perceived to be ahead is in texting – one of the key markets in Europe and Asia – areas where the iPhone initially isn’t available.

But what it does tell us is that Apple’s presence is already having an effect on the marketplace. What will be more interesting is who is going to get the most value – the marketplace or Apple themselves

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3 Comments »

  Cleverboy wrote @ May 26th, 2007 at 6:33 pm

It’s called “multi-touch”. Just saying.

Will Apple benefit more than the marketplace? How to measure? Has Microsoft benefitted more from Windows than the marketplace? Where would one begin to calculate that? As such, its not worth really asking if its only purpose is to cast a dim and unanswerable light on something. It is worth saying that more than a few people have been feeling the slowing of innovation in the cellphone industry. This happens when new handsets are released that advance certain features, while completely and inexplicably removing others making customers feel trapped by incompetance and gimmicry.

While its true news outlets and studies are being generated by the bucket loads in support of an unreleased phone, its also interesting to note that its still not clear how to measure or even accurately articulate the benefits of the device, when traditionally that determination has always been done almost entirely by “list of features” alone. How does one guage the overhaul and reinvention of existing functions.

It’s very striking that while the simplicity of the Palm Pilot dealt a shocking blow to the prospects of the feature packed Apple Newton (capable of even doing faxes) back in 1996, over a decade later, the Apple iPhone seems to be doing the same to the latest Treo offerings (while neglecting such powerful features like GPS and tactile keyboards). While Newton kept adding “more stuff”, the Palm Pilot carefully refined its positioning ultimately declaring the Newton a deadend, not for its lack of features, but its excesses and practical shortcomings.

It’s all just a little bit of history repeating.

  Ryan Brandys wrote @ May 27th, 2007 at 10:08 am

“Has Microsoft benefitted more from Windows than the marketplace? Where would one begin to calculate that?”

It’s called consumer and producer surplus. Basic Microeconomic principles show that these areas are calculable. All you need is the supplier’s marginal cost curve, and the demand curve. Yes, feeling out the demand curve requires great research, but I’ll bet Microsoft has hundreds of people working on that.

-Ryan Brandys

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