Unbound Edition. Meaningful conversations about brand, from Davis Brand Capital.

iPod and iPhone = Apples and Oranges

I don’t understand how the success of the iPod is supposed to be directly proportional to the success of the iPhone . From what I’ve seen and read, it looks like a cool phone, but at the end of the day, it’s just a phone.

The iPod is a toy. I can go into a store and buy it, and if I don’t want to play with it in a few months, I don’t have to. There’s no commitment involved.

The iPhone is a completely different story. Not only am I going to have to pay at least $500 this thing, but now, I also have to switch my cell phone carrier…who I have to commit to for the next two years!

I don’t think that the loyalty people have to their cell phones and cell phone companies has been figured into this equation; this “crackberry” thing is going to be a monster to compete with.

I also don’t think that they’ve considered that most people are currently under contract and face hefty early termination fees for canceling their contracts. This $300 ETF, plus the $500 for the phone, plus activation and bill comes to a grand total near $900…and this is just to get this thing to start working. Also, factor in that, in addition to a monthly bill, you’ll be paying data usage charges (with t-mobile, unlimited data for my sidekick is $30 monthly, so I assume it will be around the same). The bill itself will be around $100 a month, which is a substantial amount more than most people are used to, as they are currently only talking, texting and using the internet sparingly.

In all, I understand the hype and I’ll admit that it looks really cool; but I just don’t see this thing taking flight like Apple is predicting, at least not right away.


Related Thinking


Weird’s Worth

September 28, 2016


Disney Considers Offer for Twitter

September 30, 2016