Product News: Apple’s iPhone Under Fire
Thursday, April 5th, 2007
John C. Dvorak of MarketWatch, wrote last week, that Apple should dump the iPhone. He is wrong.
Dvorak argues that Apple should get out of the cell phone business while they still can, because the margins are too small and the competition is too big. On its face, this is true, but where Dvorak goes wrong, is his assumption that Apple is getting into the cell phone business.
More and more, phones are becoming portable mini-computers, and this is why Apple is stepping in. They do the personal computer better than anyone. As Paul Boutin of Slate.com explains, the iPhone is not just a cell phone, iPod, or Internet device, it is a computer.
Sure, the ticket price will scare a lot of people off, and the exclusivity deal with Cingular will scare some people off. And the competition will only get better (it can’t get any worse right?). But eventually, Apple will win out simply because cell-phones are no longer just phones, they are computers, and Apple makes damn good computers (When was the last time you bought a computer from Motorola?)