Call for an Apple

After the resounding success of ipod, sales of which have crossed the 100 million mark, everyone started asking why Apple was not bundling a phone with it to compete with other multimedia phones. The $22 billion firm has finally come out with an answer""the iphone priced at around Rs 16,000 for a 4GB version and around Rs 24,000 for an 8GB one. The product, which is making its debut on July 29, has created a lot of hype the world over""for example, search for "iphone" on Google and you will get around 8,300 reports and the query brings up some 71 million hits. But this is understandable as Apple Inc's products have achieved almost a cult status.

The latest offerings""the iphone and the Safari browser for Internet surfing""only add to the iconic status of the company. And users are lapping them up. A survey by M:Metrics reveals almost 19 million Americans and seven million people in the UK are interested in buying the iPhone. One can simply add up millions from Asia (when it's launched here) to these numbers. With the ipod, and now the iphone, Mac sales (both desktops and laptops) too are expected to pick up since millions of uninitiated users are getting to know the company better because of the ipod. Analysts predict Macs will continue a double-digit growth rate as it gets a boost from the iPhone and the operating system upgrade (named Leopard, which is an answer to Microsoft's Vista) due to be released this October. What has also worked for Apple over the years is its nose for aesthetics, which is seen in the slickness of its designs. Besides, it is known for the ease of use when it comes to software which integrates well with its hardware.

But there are a few initial problems with the iphone. Since it's tied down to AT&T, there is no point in Indians importing it since the operators here do not have the rights and only the very rich can afford the roaming charges by AT&T (a 5-year exclusive arrangement). In fact, M:Metrics' numbers could increase exponentially when other carriers step in. Second, the iphone's battery is expected to give up to eight hours of talk time (analysts, however, say it may last for around five hours) with six hours of Internet use and seven hours of video playback. Third, the iphone will not support Multimedia Messaging Service (MMS), so users will not be able to send text messages with pictures or video to other cellphone users. Besides, while current iTunes account holders will be able to use existing accounts, new users will have to create one. Fourth, while iPhones can be used for email, for now, many businesses do not plan to sync them with internal email systems that use technology from BlackBerry, Microsoft and Good Technology. Apple, however, seems unperturbed and says it aims to sell about 10 million iPhones in 2008""about 1 per cent of the global handset market. Given its savvy marketing and pull from the youth, the company may pull it off""easily.