We are monitoring how the iPhone is doing, and its pretty well on target to exceed what I estimated for its USA market but behind its schedule for its European targets. Still it seems that my gut feeling they would hit the 10 million sales in the first year is well within target.
But an interesting observation along the way. I did say in my January postings on Handicapping the iPhone that I expected the unsubsidised iPhone to cost 1,000 USD for the 4 GB version and 1,200 USD for the 6 GB version when the phone would reach European shores and a SIM-free version would need to be offered as in many markets you cannot force the customer to take a subsidised phone. Many were very dubious of those numbers, expecting the iPhone to be much less when sold without contract.
Now we have the official prices. T-Mobile in Germany is selling the iPhone (6 GB version, which had been discounted in America to 400 USD on its subsidised plan) for... 999 Euros, according to I 4 U News. So that is about 1,450 USD for the 6 GB version. Yes I was wrong, but most expected it to cost less than I expected, not more. At least I was closer than most ha-ha.. And if this is a short term introductory price level by T-Mobile to discourage lots of people from buying off all the stock of iPhones who would not then use it on T-Mobile's network, you could expect the price to drop reasonably, perhaps after Christmas, to something like 899 Euros (1,300 USD) or perhaps even 799 Euros (1,120 USD). My guess from January was rather well in the ballpark?
Now comparing Apples to Apples
And then it has become very valid to compare the iPhone to other phones costing about 1,400 dollars - such as the Nokia N-95 which was selling for 600 UKP or 1,200 Dollars before the iPhone was launched this Spring, or my fave phone, the N-93 which was a 600 UKP phone (1,200 USD) back in December 2006 ie a year ago. What did you get for the same price as an iPhone now, a year earlier from Nokia (vs the N-93) - not just cameraphone but 3 megapixels vs 2; not just any old plastic lens, but the Carl Zeiss optics on the Nokia. Not just useless digital zoom as on both phones, but true optical zoom 3x on the N-93 ! And no flash on the iPhone, flash on Nokia (and yes, the flash is almost useless as so under-powered). Then 3G. The iPhone is only 2.5G. Both have WiFi.
The Apple has a 3.5 inch screen, the Nokia has a 2.5 inch screen so the Apple is better in screen size. And just like the true size is exactly twice as large, so too is the screen pixel resolution, with Apple twice the size of the N-93. But the Nokia has video-out allowing you to connect it directly to your TV set. Talking about video, the iPhone doesn't even record video, the N-93 records video - and wow, it is the first mass market cameraphone to record video up to DVD quality ! And yes, since the iPhone doesn't do video recording, it of course doesn't do videocalls. The N-93 has a second video camera (inward-facing VGA) for video calling
The Apple has no removable memory slot - the N-93 currently has 2 GB memory modules with larger soon to come. The Apple has no removable battery. The N-93 has the 2D Barcode reader. The N-93 has a built in FM radio. Both phones have bluetooth, but the N-93 also has infra-red. Both are quad-band "international" phones on GSM, but since the N-93 adds WCDMA 3G, it also works in several countries where there is no GSM, such as Japan and South Korea where the iPhone won't find a cellular network to even connect.
So for two phones of the very nearly same price, the one year older Nokia is far superior in almost all technical specs, but honestly, it is also a very large phone. Both phones are similar in height and width, the N-93 slightly taller and the iPhone slightly wider, but the N-93 is two and a half times as thick as the iPhone - yes if you fasten two iPhones back-to-back on rubber bands, it is still significantly less thick than the Nokia. Of course the N-93 is a folder phone so you also get the screen protection of a flip-phone and then the N-93 has a second screen for the closed clamshell use.
There is a valid comparison to say that the iPhone is uber-sexy but very limited, ie like a top-line 2 seat sportscar, not unlike a Ferrari or Aston Martin. And that the N-93 is the jack-of-all-trades but very bulky, ie the top-line sedan like a Rolls Royce or Maybach overloaded with every conceivable gadget and accessory. I don't mean one is inherently better than the other, but for this price, one gets you very much more than the other. For those who really want the sexy sleek cool looks of the iPhone, or the Apple interconnectedness, or the Apple ease-of-use, then yes, whatever Apple produced at almost whatever price, does not really matter, that is the phone. But if you're into pictures, the optical zoom, Carl Zeiss lens and flash totally decide this matter. Or if you're into video recording (DVD quality) again there is no comparison, the older N-93 wins hands down
Those who love the N-95, it essentially drops the optical zoom part but adds a 5 megapixel camera, GPS and HSDPA 3.5G.
And consier the above comparison, that was from a year-old phone from Nokia. At this price (999 Euros unsubsidised) the iPhone is having very serious competition from CURRENT top line phones, not just the Nokias (such as the E-90 Communicator) but also top end Sony Ericssons, Samsungs, LGs etc.
And please all Apple lovers out there - I am a fan of Apple ! I don't want this first iteration iPhone for the very simple reason that it is not 3G - pretty useless to me in many of the countries where I do business - but the NEXT iPhone is the one I am already addicted to. When Apple listen to their customers and get ever better at the phone business, they will very soon produce the best phone ever like they have with their long history with PCs and now considerable experience with the iPods. This first iPhone is the Lisa to Apple's Macintosh. The next iPhone will be the true superphone from Apple (in my humble opinion) and I do want it already..
But sorry, got off the main topic. Yes, the iPhone unsubsidised price is now finally confirmed. 999 Euros or about 725 UKP or 1,450 USD. Thats an expensive phone, and at that price, it seems to be very "austere" or spartan in its feature set..
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