2007年5月31日星期四
AT&T exec calls iPhone 'game changer'
The incoming CEO of AT&T said Wednesday that expectations are "too low" for Apple Inc.'s iPhone, which his company will start selling next month. "The iPhone is going to be a game changer," Randall Stephenson said at an investor conference in New York. "I don't know what your expectations are for the iPhone, but I would tell you they're probably too low at this point." The iPhone, which blends a mobile phone with the iPod music player, has attracted interest from more than 1 million customers, he said. Apple expects to sell 10 million iPhones next year, and AT&T won exclusive rights to distribute the product in the U.S. AT&T's cell phone unit, formerly known as Cingular Wireless, plans to use the iPhone to recruit subscribers. San Antonio-based AT&T has 62.2 million wireless customers, the most in the nation. Stephenson, chief operating officer of AT&T, will replace Edward Whitacre on Sunday as CEO. Verizon Wireless reportedly plans to introduce a device this summer to compete with the iPhone. Last month Sprint did the same when it introduced its Upstage.
Jobs wants to put the 'baby Internet' to bed
SAN FRANCISCO (MarketWatch) -- Since Apple Inc. unveiled the iPhone four months ago, there has been much speculation about whether it will be more of an iPod or a cell phone.
But to hear Steve Jobs tell it, the device's strongest selling point may be neither.
As he touted the product to a gathering of tech industry executives this week [on Wednesday], Apple's (AAPL :
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AAPL118.77, +4.42, +3.9%) chief executive sounded most excited about the iPhone's Internet pedigree -- especially it's ability to download and play videos.
The iPhone comes equipped with "real versions" of the company's operating system and the Safari Web browser, Jobs said, which will allow Apple to deliver to consumers an experience that others have mostly failed to. "It's the Internet in your pocket," he said.
Even though cell-phone providers have spent billions to build out sophisticated networks to let handsets access the Web, "you can't do a lot with them," according to Jobs. "You get the 'baby Internet,'" he said. "People want to get the 'real Internet' on their phone," Jobs said.
If Jobs is right, Apple's move into the handset market may not hinge on how well the product can navigate the straits between two markets -- cell phones and portable media players -- that within a few years will likely become one.
That challenge is one reason many Apple watchers feel that the company's move into the cell phone market is fraught with risk.
At nearly $500, no one is going to buy the iPhone just for its handset capabilities.
If the iPod merely cannibalizes sales of high-end iPods, it may open the door to rivals like Nokia Corp. (NOK :
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NOK27.16, +0.69, +2.6%) and Sony Ericsson to slow iPod growth or even take market share. Both companies have added music players to their phones.
But if Jobs can change why people buy cell phones with the iPhone, just as he changed how people buy music with the iPod, he might take enough of the handset market share to keep iPod sales surging.
Jobs can spin with the best of them, so his touting of the iPhone's video download may be little more than shrewd product positioning.
During his presentation at the "D" - All Thing Digital conference in Carlsbad, Calif., Jobs managed to turn on its head the most common argument against the iPhone -- that it's lack of a keyboard will be a huge negative for consumers used to texting on smart phones like the Research in Motion Ltd. (RIMM :
research in motion ltd com
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Jobs acknowledged that the iPhone's touch screen will take some getting used to.
"It takes about a week; you have to learn how to trust it," he said.
But the feature will provide the device with "incredible versatility," because it allows the device to offer users different interfaces for its different applications.
To be sure, it's not that Jobs downplayed the product's music player capabilities.
The iPhone "has the best iPod we've ever made," he said.
Still, he acknowledged that Cingular Wireless, which will be the only carrier to sell the product when it begins shipping next month, took a chance by agreeing to carry the product before Apple even showed it to them.
"They took a gamble on us," because Apple has never made its own handset, "just as we took a gamble on them," Jobs said.
So why would Cingular, now a unit of AT&T Inc. (T :
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T40.98, +0.49, +1.2%) , do it?
Because "music hasn't been good on the phone," he said, and the company felt that partnering with Apple was their best chance of improving that experience.
If consumers agree, Apple's sales and stock price may continue to rise, and Jobs may once again look like a genius.
But to hear Steve Jobs tell it, the device's strongest selling point may be neither.
As he touted the product to a gathering of tech industry executives this week [on Wednesday], Apple's (AAPL :
Apple Inc
News , chart , profile , more
Last: 118.77+4.42+3.87%6:02am 05/31/2007Delayed quote data
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Sponsored by:
AAPL118.77, +4.42, +3.9%) chief executive sounded most excited about the iPhone's Internet pedigree -- especially it's ability to download and play videos.
The iPhone comes equipped with "real versions" of the company's operating system and the Safari Web browser, Jobs said, which will allow Apple to deliver to consumers an experience that others have mostly failed to. "It's the Internet in your pocket," he said.
Even though cell-phone providers have spent billions to build out sophisticated networks to let handsets access the Web, "you can't do a lot with them," according to Jobs. "You get the 'baby Internet,'" he said. "People want to get the 'real Internet' on their phone," Jobs said.
If Jobs is right, Apple's move into the handset market may not hinge on how well the product can navigate the straits between two markets -- cell phones and portable media players -- that within a few years will likely become one.
That challenge is one reason many Apple watchers feel that the company's move into the cell phone market is fraught with risk.
At nearly $500, no one is going to buy the iPhone just for its handset capabilities.
If the iPod merely cannibalizes sales of high-end iPods, it may open the door to rivals like Nokia Corp. (NOK :
Nokia Corp
News , chart , profile , more
Last: 27.16+0.69+2.61%6:01am 05/31/2007Delayed quote data
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Sponsored by:
NOK27.16, +0.69, +2.6%) and Sony Ericsson to slow iPod growth or even take market share. Both companies have added music players to their phones.
But if Jobs can change why people buy cell phones with the iPhone, just as he changed how people buy music with the iPod, he might take enough of the handset market share to keep iPod sales surging.
Jobs can spin with the best of them, so his touting of the iPhone's video download may be little more than shrewd product positioning.
During his presentation at the "D" - All Thing Digital conference in Carlsbad, Calif., Jobs managed to turn on its head the most common argument against the iPhone -- that it's lack of a keyboard will be a huge negative for consumers used to texting on smart phones like the Research in Motion Ltd. (RIMM :
research in motion ltd com
News , chart , profile , more
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RIMM164.66, -0.67, -0.4%) BlackBerry and the Palm Inc. Treo.
Jobs acknowledged that the iPhone's touch screen will take some getting used to.
"It takes about a week; you have to learn how to trust it," he said.
But the feature will provide the device with "incredible versatility," because it allows the device to offer users different interfaces for its different applications.
To be sure, it's not that Jobs downplayed the product's music player capabilities.
The iPhone "has the best iPod we've ever made," he said.
Still, he acknowledged that Cingular Wireless, which will be the only carrier to sell the product when it begins shipping next month, took a chance by agreeing to carry the product before Apple even showed it to them.
"They took a gamble on us," because Apple has never made its own handset, "just as we took a gamble on them," Jobs said.
So why would Cingular, now a unit of AT&T Inc. (T :
AT&T Inc
News , chart , profile , more
Last: 40.98+0.49+1.21%4:15am 05/31/2007Delayed quote data
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T40.98, +0.49, +1.2%) , do it?
Because "music hasn't been good on the phone," he said, and the company felt that partnering with Apple was their best chance of improving that experience.
If consumers agree, Apple's sales and stock price may continue to rise, and Jobs may once again look like a genius.
2007年5月28日星期一
Leading the charge on iPhone
Brace yourself for another tsunami of hype.
May's craze was "American Idol." June's will be the Apple iPhone, which is going on sale in a few weeks. As with "Idol," the iPhone show has lots of Seattle connections.
The season begins Wednesday when Apple boss Steve Jobs is expected to talk up the device at a Wall Street Journal tech conference in California.
Playing the foil on stage with Jobs will be the Simon Cowell of the software world, Bill Gates.
Behind the scenes, AT&T engineers in Redmond are busy working with the iPhone to be sure it works well on the wireless network. The team is a vestige of the company's roots as Cingular Wireless, AT&T Wireless and, before that, McCaw Cellular Communications.
But the biggest local player may be Glenn Lurie, AT&T's point man on the iPhone project.
Lurie, 41, grew up in Portland, graduated from Seattle Pacific University in 1987 and married into a Bellingham family.
His first job out of college was selling tickets and suites for the Sonics, but after six weeks he was recruited to play pro soccer.
In 1990, he was back in Portland, trying to decide whether to coach at soccer camps. Instead he became a sales rep for McCaw's Cellular One.
As the company surged and merged, Lurie charged up the corporate ladder. Within a few years, he was head of marketing to suburban Oregon. Then he was tapped to lead McCaw's Arizona debut.
"One of the beautiful things about the wireless business is that if you performed, the business grew so fast, you could grow with it," he said last week in Seattle.
After McCaw sold to AT&T and became AT&T Wireless, Lurie transferred to Los Angeles and later became regional president for the West.
(AT&T Wireless was acquired by Cingular, which recently changed its name to AT&T.)
Now Lurie is president of national distribution, based in Atlanta.
The job put him in the room with the chief executive and chief operating officer during their first meeting with Jobs. Then he worked on contracts leading to an exclusive, five-year iPhone partnership.
They knew it was a big chance, but they didn't realize how big, Lurie said.
"The anticipation that we're seeing, the buzz we're seeing, at least for me, has far exceeded our expectations of how important this would be to the business and us," he said.
Lurie is using an iPhone, but he wouldn't take it out for a photo last week. "Can't do that," he said.
He was more than happy to show off the Samsung BlackJack on his hip, though. AT&T is selling the Microsoft-powered phone for less than $100. That's about a fifth the price of an iPhone, which is being priced $499 for a 4-gigabyte model and $599 for 8 gigabytes.
That price gap is why I've been skeptical about the iPhone's prospects.
The device will undoubtedly push phone makers to improve their software and add features. It may force wireless companies to let more users have full browsers and PC-like music players on their phones.
But how many people are going to pay nearly $600 for a phone?
That's partly why I wanted to meet Lurie and to get a better idea of what to expect from America's next diversion.
Here's an edited version of our chat:
Q: One point of skepticism is the price. That BlackJack is pretty nice, and it costs $500 less than an iPhone ...
A: Here's how I'd explain it. The most popular iPod, a 4-gigabyte Nano, costs $200. If you've got a RIM BlackBerry or Palm Treo, you probably paid $200 minimum. Then you've got a phone that you got for free or paid maybe $50.
You're at $450 or $500. The question you've got to be able to ask yourself is, is this device going to be able to replace those three, so you carry one? That's the question.
I think when people get their hands on it and really experience it — the touch screen is phenomenal, this touch screen is like nothing you've ever used — to experience that, the skepticism, I think, around some of those things will go away.
There are other things — you have the widgets, some of the Google applications that are coming — there are just so many things here that the price will not be an issue.
Q: So you don't think you'll have to subsidize the phone's price?
A: We're not talking about that.
Q: What's your impression of Apple?
A: It's a great company. I know there are lots of interesting thoughts out there about how Steve and his team have done so many things, but they have been such innovators. If you look at the music side, it's hard to argue that they aren't driving a lot of things.
Q: What's your favorite iPhone feature?
A: I don't know if I can answer that. It's a pretty incredible browsing environment. That's the first part that I think will blow people away. It's the first widescreen iPod they've ever done; it is very, very good, works extremely well.
I think the other thing people haven't really thought through is that Apple's so good at simplifying things. That's just what they're known for; they've really simplified the phone. The standard phone applications are really intuitive, whether it's receiving a phone call, putting that person on hold, adding another party and bringing a conference call together.
Q: Won't the full-powered browser hurt AT&T? People won't need to use its services as much — they'll just pull things from the Web, instead of calling directory assistance, for example.
A: No, actually it won't. I think it will be great for us, and here's why. One of the things with this device — people are going to be asked to have an unlimited package — people are going to have to have a package with us to browse. That's one good thing for everybody.
I think this is going to create a new way people use handheld devices because the browsing experience is as good as the PC browsing experience. So I think it's not going to hurt us at all. I'm excited about what it will do for the industry in terms of how people view mobile browsing.
Q: What's the risk in your deal with Apple? Are there downsides or concerns?
A: Not that I can see. The thing I get asked about a lot is, obviously, that our companies are different cultures. But they have been incredible to work with.
The one thing we found as commonality is our pursuit of customer experience. Whenever we got into discussions, the thing we kept coming back to was this unwavering "what's the customer experience going to be?" That's gotten us over the hump every single time.
Q: What do you think of Jobs?
A: He's a great guy. I've been dealing with Steve a lot. I think my prior comments fit: He is all about the customer, the customer experience, making sure that what customers get meets expectations. That's what my mesh has been.
May's craze was "American Idol." June's will be the Apple iPhone, which is going on sale in a few weeks. As with "Idol," the iPhone show has lots of Seattle connections.
The season begins Wednesday when Apple boss Steve Jobs is expected to talk up the device at a Wall Street Journal tech conference in California.
Playing the foil on stage with Jobs will be the Simon Cowell of the software world, Bill Gates.
Behind the scenes, AT&T engineers in Redmond are busy working with the iPhone to be sure it works well on the wireless network. The team is a vestige of the company's roots as Cingular Wireless, AT&T Wireless and, before that, McCaw Cellular Communications.
But the biggest local player may be Glenn Lurie, AT&T's point man on the iPhone project.
Lurie, 41, grew up in Portland, graduated from Seattle Pacific University in 1987 and married into a Bellingham family.
His first job out of college was selling tickets and suites for the Sonics, but after six weeks he was recruited to play pro soccer.
In 1990, he was back in Portland, trying to decide whether to coach at soccer camps. Instead he became a sales rep for McCaw's Cellular One.
As the company surged and merged, Lurie charged up the corporate ladder. Within a few years, he was head of marketing to suburban Oregon. Then he was tapped to lead McCaw's Arizona debut.
"One of the beautiful things about the wireless business is that if you performed, the business grew so fast, you could grow with it," he said last week in Seattle.
After McCaw sold to AT&T and became AT&T Wireless, Lurie transferred to Los Angeles and later became regional president for the West.
(AT&T Wireless was acquired by Cingular, which recently changed its name to AT&T.)
Now Lurie is president of national distribution, based in Atlanta.
The job put him in the room with the chief executive and chief operating officer during their first meeting with Jobs. Then he worked on contracts leading to an exclusive, five-year iPhone partnership.
They knew it was a big chance, but they didn't realize how big, Lurie said.
"The anticipation that we're seeing, the buzz we're seeing, at least for me, has far exceeded our expectations of how important this would be to the business and us," he said.
Lurie is using an iPhone, but he wouldn't take it out for a photo last week. "Can't do that," he said.
He was more than happy to show off the Samsung BlackJack on his hip, though. AT&T is selling the Microsoft-powered phone for less than $100. That's about a fifth the price of an iPhone, which is being priced $499 for a 4-gigabyte model and $599 for 8 gigabytes.
That price gap is why I've been skeptical about the iPhone's prospects.
The device will undoubtedly push phone makers to improve their software and add features. It may force wireless companies to let more users have full browsers and PC-like music players on their phones.
But how many people are going to pay nearly $600 for a phone?
That's partly why I wanted to meet Lurie and to get a better idea of what to expect from America's next diversion.
Here's an edited version of our chat:
Q: One point of skepticism is the price. That BlackJack is pretty nice, and it costs $500 less than an iPhone ...
A: Here's how I'd explain it. The most popular iPod, a 4-gigabyte Nano, costs $200. If you've got a RIM BlackBerry or Palm Treo, you probably paid $200 minimum. Then you've got a phone that you got for free or paid maybe $50.
You're at $450 or $500. The question you've got to be able to ask yourself is, is this device going to be able to replace those three, so you carry one? That's the question.
I think when people get their hands on it and really experience it — the touch screen is phenomenal, this touch screen is like nothing you've ever used — to experience that, the skepticism, I think, around some of those things will go away.
There are other things — you have the widgets, some of the Google applications that are coming — there are just so many things here that the price will not be an issue.
Q: So you don't think you'll have to subsidize the phone's price?
A: We're not talking about that.
Q: What's your impression of Apple?
A: It's a great company. I know there are lots of interesting thoughts out there about how Steve and his team have done so many things, but they have been such innovators. If you look at the music side, it's hard to argue that they aren't driving a lot of things.
Q: What's your favorite iPhone feature?
A: I don't know if I can answer that. It's a pretty incredible browsing environment. That's the first part that I think will blow people away. It's the first widescreen iPod they've ever done; it is very, very good, works extremely well.
I think the other thing people haven't really thought through is that Apple's so good at simplifying things. That's just what they're known for; they've really simplified the phone. The standard phone applications are really intuitive, whether it's receiving a phone call, putting that person on hold, adding another party and bringing a conference call together.
Q: Won't the full-powered browser hurt AT&T? People won't need to use its services as much — they'll just pull things from the Web, instead of calling directory assistance, for example.
A: No, actually it won't. I think it will be great for us, and here's why. One of the things with this device — people are going to be asked to have an unlimited package — people are going to have to have a package with us to browse. That's one good thing for everybody.
I think this is going to create a new way people use handheld devices because the browsing experience is as good as the PC browsing experience. So I think it's not going to hurt us at all. I'm excited about what it will do for the industry in terms of how people view mobile browsing.
Q: What's the risk in your deal with Apple? Are there downsides or concerns?
A: Not that I can see. The thing I get asked about a lot is, obviously, that our companies are different cultures. But they have been incredible to work with.
The one thing we found as commonality is our pursuit of customer experience. Whenever we got into discussions, the thing we kept coming back to was this unwavering "what's the customer experience going to be?" That's gotten us over the hump every single time.
Q: What do you think of Jobs?
A: He's a great guy. I've been dealing with Steve a lot. I think my prior comments fit: He is all about the customer, the customer experience, making sure that what customers get meets expectations. That's what my mesh has been.
More iPhone apps confirmed
AT&T’s main man says extra applications from Google will be on the iPhone. Click to enlarge 1 of 1 Apple's got more apps to fill that menu, specifically, from Google... [more images]We’ve been wondering about the iPhone’s applications for a while, but now it’s been confirmed – the handset will come with more than we’ve seen so far.
AT&T, the iPhone’s sole provider in the US, has gone on record saying more Google apps in particular will be present on the handset.
We’ve already seen Google Maps, and very swish it is too, but now AT&T’s president of national distribution Glenn Lurie says they’ll be accompanied by others from the house of Google.
Exactly what they are, he’s not saying. Our money is on Google News or Google Reader, for staying up to date on the move. Maybe there’s an iPhone version of Blogger in the works, potentially woven into a mobile iWeb. Perhaps Google Calendar will integrate fully with the handset’s iCal support. The potential is endless.
Speaking to the Seattle Times Laurie said the handset’s touchscreen would also surprise people. “I think when people get their hands on it and really experience it — the touch screen is phenomenal,” he said.
“This touch screen is like nothing you've ever used — to experience that, the scepticism, I think… will go away.”
T3 got some hands-on time with iPhone just after it was announced, and we can confirm the touchscreen is indeed phenomenal. Check out our hands-on report here.
In the meantime, we’re waiting like everyone else for news on the iPhone’s UK release. Updates right here as soon as we hear them.
AT&T, the iPhone’s sole provider in the US, has gone on record saying more Google apps in particular will be present on the handset.
We’ve already seen Google Maps, and very swish it is too, but now AT&T’s president of national distribution Glenn Lurie says they’ll be accompanied by others from the house of Google.
Exactly what they are, he’s not saying. Our money is on Google News or Google Reader, for staying up to date on the move. Maybe there’s an iPhone version of Blogger in the works, potentially woven into a mobile iWeb. Perhaps Google Calendar will integrate fully with the handset’s iCal support. The potential is endless.
Speaking to the Seattle Times Laurie said the handset’s touchscreen would also surprise people. “I think when people get their hands on it and really experience it — the touch screen is phenomenal,” he said.
“This touch screen is like nothing you've ever used — to experience that, the scepticism, I think… will go away.”
T3 got some hands-on time with iPhone just after it was announced, and we can confirm the touchscreen is indeed phenomenal. Check out our hands-on report here.
In the meantime, we’re waiting like everyone else for news on the iPhone’s UK release. Updates right here as soon as we hear them.
Verizon to Challenge iPhone with LG Prada
2007年5月27日星期日
Reports: Verizon Planning iPhone Killer
Reports: Verizon Planning iPhone Killer
Verizon Wireless is plotting a response to AT&T's widely-anticipated Apple iPhone offering.Part 1 of a special five-part series. -->
Jim Duffy, Network World
Verizon Wireless is plotting a response to AT&T's widely-anticipated Apple iPhone offering, according to published reports.
Apple unveiled iPhone at the Macworld conference in January. It features a 3.5-inch, 160 dot-per-inch color screen, a 2 megapixel digital camera and a touchscreen Apple calls "Multitouch," which is designed to enhance accuracy by ignoring unintended touches.
IPhone is 11.6 millimeters thick -- thinner than typical smartphones, according to Apple CEO Steve Jobs.
AT&T has exclusive rights to offer iPhone for five years. It will be available from the carrier next month.
Verizon Wireless' counter is the LG Prada, or KE850, according to TheStreet.com. Prada is a sleek handset similar in look to the iPhone, the Web site reports. It includes a camera, and can play music and videos and allow for document viewing.
IPhone will cost US$500 while Prada is expected to retail for around $600. The offering is seen as key for Verizon Wireless to attempt to stem the tide of customers to iPhone and AT&T.
Verizon Wireless was not immediately available for comment. USA Today recently quoted Verizon COO Denny Strigl stating that the carrier will have a response to iPhone by late summer.
For more information about enterprise networking, go to NetworkWorld. Story copyright 2007 Network World Inc. All rights reserved.
Verizon Wireless is plotting a response to AT&T's widely-anticipated Apple iPhone offering.Part 1 of a special five-part series. -->
Jim Duffy, Network World
Verizon Wireless is plotting a response to AT&T's widely-anticipated Apple iPhone offering, according to published reports.
Apple unveiled iPhone at the Macworld conference in January. It features a 3.5-inch, 160 dot-per-inch color screen, a 2 megapixel digital camera and a touchscreen Apple calls "Multitouch," which is designed to enhance accuracy by ignoring unintended touches.
IPhone is 11.6 millimeters thick -- thinner than typical smartphones, according to Apple CEO Steve Jobs.
AT&T has exclusive rights to offer iPhone for five years. It will be available from the carrier next month.
Verizon Wireless' counter is the LG Prada, or KE850, according to TheStreet.com. Prada is a sleek handset similar in look to the iPhone, the Web site reports. It includes a camera, and can play music and videos and allow for document viewing.
IPhone will cost US$500 while Prada is expected to retail for around $600. The offering is seen as key for Verizon Wireless to attempt to stem the tide of customers to iPhone and AT&T.
Verizon Wireless was not immediately available for comment. USA Today recently quoted Verizon COO Denny Strigl stating that the carrier will have a response to iPhone by late summer.
For more information about enterprise networking, go to NetworkWorld. Story copyright 2007 Network World Inc. All rights reserved.
Rivals Gear Up for iPhone Debut
SAN FRANCISCO With Apple's iPhone due to debut in a month, the wireless wars heated up last week among AT&T, Verizon and T-Mobile.AT&T, the iPhone's exclusive U.S. service provider, accelerated the process of rebranding its former Cingular stores on May 21-22 to get the maximum benefit from the growing buzz surrounding the new product.
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During the same period, T-Mobile unveiled its own version of the iPhone, called the Wing. The Internet-enabled, WiFi equipped device retails for $299 with rebates. Not to be outdone, Verizon executives said in published reports that they would unveil a new WiFi mobile phone in late summer.Apple's iPhone is billed as a well designed, easy-to-use wireless phone, music player and Web-access product. Apple's lead agency, Omnicom Group's TBWA\Chiat\Day in Playa del Rey, Calif., is handling the iPhone's intro.Critics maintain its hefty starting price of $499 will limit its overall appeal."The introduction of the iPhone will have a big impact on the mobile market globally," counters Daniel Rosen, director of AKQA Mobile.Aside from the popularity of its design and simplicity, iPhone poses another threat to carriers: "It is similar to the iPod in that users download music from their computers" in order to put it on their phone, he said.That's bad news for carriers "who prefer that phone users pay to download music using the phone networks that they have been spending millions of dollars to build in the last few years." he said.AT&T agreed to ignore the problem because "they recognize that this phone will be a must-have item for so many millions of iPod fans. AT&T will most likely win significant market share from competitors [whose customers] will want to have an iPhone more than they want to stay on their existing mobile-phone contract," Rosen said.Some analysts said the low-tech approach of the iPhone could help the mobile phone industry overall by raising the awareness of new services and content, pointing to the effect the iPod had on digital music. (A 2006 report by Jupiter Research said the emergence of the iPod drove acceptance of all digital music products.)Executives at shops that handle phone-carrier accounts generally downplay the iPhone's potential impact, treating it as another new product launch, rather than a category changer.However, Bob Moore, CCO of Publicis USA, who oversees T-Mobile, said significant new advertising and nontraditional marketing for the T-mobile brand will begin in the third quarter, right after the iPhone launch. "The next 12 months are going to be an exciting time in the industry," he said.
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During the same period, T-Mobile unveiled its own version of the iPhone, called the Wing. The Internet-enabled, WiFi equipped device retails for $299 with rebates. Not to be outdone, Verizon executives said in published reports that they would unveil a new WiFi mobile phone in late summer.Apple's iPhone is billed as a well designed, easy-to-use wireless phone, music player and Web-access product. Apple's lead agency, Omnicom Group's TBWA\Chiat\Day in Playa del Rey, Calif., is handling the iPhone's intro.Critics maintain its hefty starting price of $499 will limit its overall appeal."The introduction of the iPhone will have a big impact on the mobile market globally," counters Daniel Rosen, director of AKQA Mobile.Aside from the popularity of its design and simplicity, iPhone poses another threat to carriers: "It is similar to the iPod in that users download music from their computers" in order to put it on their phone, he said.That's bad news for carriers "who prefer that phone users pay to download music using the phone networks that they have been spending millions of dollars to build in the last few years." he said.AT&T agreed to ignore the problem because "they recognize that this phone will be a must-have item for so many millions of iPod fans. AT&T will most likely win significant market share from competitors [whose customers] will want to have an iPhone more than they want to stay on their existing mobile-phone contract," Rosen said.Some analysts said the low-tech approach of the iPhone could help the mobile phone industry overall by raising the awareness of new services and content, pointing to the effect the iPod had on digital music. (A 2006 report by Jupiter Research said the emergence of the iPod drove acceptance of all digital music products.)Executives at shops that handle phone-carrier accounts generally downplay the iPhone's potential impact, treating it as another new product launch, rather than a category changer.However, Bob Moore, CCO of Publicis USA, who oversees T-Mobile, said significant new advertising and nontraditional marketing for the T-mobile brand will begin in the third quarter, right after the iPhone launch. "The next 12 months are going to be an exciting time in the industry," he said.
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