Apple, supply and demand.

Apple iphoneSo this new Iphone thing has an uncertain future at best. At least in it’s current state. “Why?!” you may ask is that? Ok so it’s true that it’s an Apple Inc. product and that kind of gives it a marginally higher chance of survivability but it has a good number of problems to over come first. Not least of which is supply and demand.

Problem number one is legal. Cisco tried to play nice with Apple over some trademark issues with the name iphone. Apple likes to do things their way. Play by their rules and isn’t  playing ball over the name. Not yet any way. I think in the near future either Apple is going to simply pay out for the name in order to keep it. Or they are going to change it. Apple Phone any one? Doesn’t exactly roll off the tongue.

Problem number two is price. $500 for a phone? Holy crap! Ok so it has some neat features and everything but according to apple it isn’t even going to be expandable in the software department. Even my $100 Fusic is. On top of that my Fusic kills the music when calls come in and via the sprint store I get to see album art and stuff too. Oh yeah and back to that expandability thing. I can download any java based app to do what ever I want. I’ve got gmail, map quest, weather and just about any other flip’n app I can think of. Don’t get me started on games. So why the heck would I even consider paying out half a grand for a phone!? Cause it’s touch screen? Read the last sentence over a few times and then think how stupid that sounds. Ok so the price needs to come down. That will happen over time but problem 3 is what is going to effect problem 2 the most I think.

Problem 3 is one of supply and demand. Apple wants the cash and thats the bottom line. They know they have to have a slick and friendly product to create the demand. They also have to make it available to every one. This is where they need the work. They went with Cingular because they are linked to AT&T which means brand recognition but they arn’t going to see the sales that really makes them the cash till they diversify with the phone and go to other providers. Basically they are limiting their market by sticking with one provider. This is not going to fly as most people are rather entrenched in their phone providers. I’m sure as heck not going to pay to break my contract and then pay some more for a way way way over priced phone and a new contract all at once. The demand is going to force Apple to bring the phone to other providers and those providers are going to pay Apple to give them the phone. That is how supply and demand are going to make Apple the bank. I give it a year or less before Apple gives the phone up to at least one other provider. The larger demand is going to help drive the price down as well.

If the phone runs a full fledged copy of OS X as Apple claims then there should be no good reason that they don’t open the phone for development by others. OS X and Apple have been doing nothing but gain market share off of how nice OS X plays with Windows and other OSes. This part doesn’t exactly make the most sense. Iphone must have been gotten a hold of by the same guys that insist on Apples DRM.

I’ll own an iphone, or what ever it’s called, when it drops to $200 or less and is offered by Sprint.

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