Wednesday, July 25, 2007

Why iPhone matters

Whatever purpose people have in paying attention to the iPhone, the product sets out at the onset to challenge its competitors and itself. Such challenge comes from a background of 3C integration. The iPhone model marks a change in the business models for traditional ICT consumer products. At least, two aspects of it can now be seen. Firstly, as far as the product is concerned, the iPhone is not a simple mobile phone. It marks Apple Inc.'s understanding of 3C integration. Though there is certain randomness in the product evolution path of MAC-iPod-iPhone, the iPhone has become a viable product line once it is introduced into the market. The iPhone is an Apple-type embodiment of computing and personal entertainment, it gives play to the characteristics of the best 3C integration platform for mobile phone and opens for Apple a huge niche market of billions of users. It also presents a challenge to the traditional evolution path of Phone+product. In the business field, the PDA+Phone model has scored considerable achievements, such as RIM's Black Berry and PALM's Treo. But, traditional mobile phone makers represented by Nokia and Motorola have firmly controlled the market with their Phone+Model. Secondly, as for the marketing model, iPhone does not just remain at terminal sales. Apple has also joined forces with its partners to sell services (software) and contents, with a focus on the consumer entertainment field. Analysis of iPod's successes will easily reveal that the key to its success lies in iPod+iTunes. Apple has maintained this successful model and added more operators' services for bundling and activation to show its differentiation and extension. This is also the change following iPod+iTunes's entry into the mobile phone field. In the future era of mobile broadband (3G or higher mobile communication technologies), it is far from enough to rely on computers to share music

resources. Similarly, in the era of mobile broadband, it is also dangerous for operators to ignore infrastructure control. Apple has,therefore, further specified the trend of change in the mobile phone market in recent years, namely, mobile phone firms are not merely mobile phone firms, they also need to become services and content operators. In this aspect, Nokia has started to take a series of actions. This is also the problem that all terminal firms must consider to cope with 3C or 4C integration.

CCID Consulting: iPhone Opens New Business Model


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