Apple's iPhone casts big shadow on cell industry

Shaon published 23 Jun 2007, 18:27 in apple - 257 views

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As if struggling cell phone-maker Motorola Inc. doesn't have enough to worry about: Here comes the iPhone, heir to the mighty iPod, brainchild of tech golden boy Steve Jobs—and riding a tidal wave of hype to boot.

Due in U.S. stores Friday, the iPhone promises to stir up the mobile phone business. Apple Inc.'s first phone isn't expected to take much business from Schaumburg-based Motorola or anyone else in the short term, but it will change the industry landscape nonetheless, analysts say.

"It will not be a financial disrupter, but it will be a psychological disrupter, a research and development disrupter," said Roger Entner, senior vice president of IAG Research's communications sector. "That's because everybody will say [to competitors like Motorola], 'Why can't you do that?' "

If Apple succeeds, it might be financial disrupter in the long term, too. If it ultimately rolls out cheaper versions of the iPhone —as it did with the iPod—it could eat into the market share of major phonemakers such as Motorola, some analysts say.

The iPhone—a melding of phone, Web browser and music and video player—will hit the shelves at a heady $499 to $599, with the latter sporting twice the storage space (8 gigabytes). The device will be available through AT&T and Apple retail stores and Web sites.

News source: Chicago Tribune

Tags: IPhone

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