Why Apple will NOT Take Over the wireless industry
Sunday, July 1st, 2007In response to the article How Apple Will Use The iPhone To Take Over The Wireless Industry, I’m opening by saying “take over” is a ludicrous claim. Do you have any idea the sheer volume of mobile handsets sold worldwide?
Further, there are a lot fewer people influenced by style and experience in the phone industry than in others. The Razr (aka the most successful cell phone of all time) moved 50M units in 4 years. And that’s been THE trendy phone to-date, and you can get them for next-to-nothing already.
But I’ll keep going, the turnover rate in mobile phones in the US is under two years and dropping. In countries like Hong Kong it’s hovering just over 3 months. So Apple has to not only have the “best” phone (already questionable), but they must sustain that position continuously.
Also (I’m on a roll here), don’t forget that the mobile OS industry is much less locked-down than the PC industry, where the only competition takes 5 years to put out a terrible upgrade to their OS. There are 4 other solid mobile operating systems for manufacturers to choose from, all of which allow for tremendous device flexibility.
Finally, unlike the PC industry which operates on margins so bad that a single tech support call makes a PC unprofitable, there’s plenty of money in mobile. LG, Samsung, Moto, and Nokia (to name a few) will not bend-over quite as peacefully as Compaq, Dell, Gateway, and Sony (you know Sony, right, makers of my hunk-o-laptop?) have to the competition.
Will Apple be a player in the mobile space? Definitely. Will they utterly dominate it the way they do the music space? I have to say it’s possible, but I highly doubt it.
I have to remember to write a blog post talking about domain expertise and the difference between the Web world and the device world.