Apple introduced its iPhone 3G last week to generally good reviews and large crowds of potential customers. Engineers immediately tore apart the device and documented its structure, architecture, and components. Reviewers also quickly examined, tested, and published the phone’s various capabilities and features.
Overall the new model does what Apple claims—twice as fast at half the cost, although the increased monthly 3G service costs will overwhelm the lower hardware cost in relatively short order. Yet the lower initial price is likely to be taken at face value for the value that the device provides to the customer, while the service contract prices will be overshadowed, for a while anyway.
A number of competitors are already waiting in the wings, although Apple’s hold over this market is likely to remain strong for some time through its large number of applications and the Apple cachet. Initial reviews are fairly positive in terms of making improvements on previous iPhone features and capabilities.
Steve Jobs’ team has put together an impressive record in terms of creating the iPhone, iPod, and iTunes family of complementary products and their product introductions are readily equipped with third-party offerings that enhance the basic product capabilities.
Few companies have had the string of successes that the Apple organization has had and its rebirth as a media leader is without peer. Nokia, Motorola, Samsung, and others continue to fight in the trenches for leadership in the generic cell phone marketplace, while Apple rides its own wave without too much interference. While those other companies struggle at times with falling market shares and wild swings in revenues, Apple maintains its specific market share without too much fear of competitive erosion. It’s interesting to note that Apple has always held onto its significantly higher price point position without discounting and generally succeeded in an electronic device market where competition is always fierce and discounting is rampant.
Apple’s position has been to only introduce unique products that satisfy a growing need for highly personal capabilities. Often those unique products may have been in a marketplace where slightly similar devices were already available but without the marketing and service support that Apple was able to provide and without Apple’s incomparable image.
