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Will Apples iPhone Transform the Wireless Industry?

Updated

August 17, 2007

The iPhone Effect: Apple’s Entry into the Mobile Space

Research and Markets has announced the addition of The iPhone Effect: Apple’s Entry into the Mobile Space to their offering.

Apple seems determined to transform the existing relationship between device manufacturers and wireless operators and how it could impact the wireless industry. The report also raises questions around the exclusive relationship between Apple and AT&T, and whether the two companies can bring about innovation in mobile multi-media applications.

According to this report, by setting foot in the mobile market, Apple is capitalizing on the increased convergence of people’s communication needs and recognizing a need for their simplification. And wireless is, of course, at the cornerstone of this increased convergence.

Countries Covered:

U.S.A.
Europe
Asia Pacific

Products Mentioned:

EDGE
3G
iPod
iPhone

Apple’s mega entry into the mobile telecom space with the launch of its iPhone still carries its reverberations across different sectors of the telecommunications industry.

The seemingly never-ending pre-launch and post-launch ballyhoo surrounding the magical device underscores two things: Apple’s continued wizardry in mega-branding of its products and the still widely-held belief that the company can transform the rules of engagement in any industry it sets foot in.

iPhone’s high price tag–amid excitement surrounding its release that was only surpassed by the release of the final Harry Potter book– is a harbinger of new trends to come in the wireless sector. In its negotiations with AT&T Wireless (formerly Cingular), Apple pushed for abandoning the long-standing industry tradition of subsidizing the device; a move that was to offset potential cannibalization of its iPod sales since iPhone is an integrated device that has full iPod functionality. In return, AT&T was blessed with an exclusive five-year contract as the sole carrier of iPhone in the U.S market.

The apparent unique nature of iPhone stems from its design, marketing and the integration between the services on the device, primarily the dual WiFi/EDGE feature.

Companies Mentioned:

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