Could The iPhone Destroy Apple's Reputation? - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
Commentary
3/30/2007
10:19 AM
Stephen Wellman
Stephen Wellman
Commentary
50%
50%

Could The iPhone Destroy Apple's Reputation?

MarketWatch columnist John Dvorak argues that Apple should just make the iPhone a reference design and move on. Why, you may ask, would Apple want to walk away from the hottest mobile device in years? Because it isn't equipped to handle the demands of the nonstop mobile phone market, that's why.

MarketWatch columnist John Dvorak argues that Apple should just make the iPhone a reference design and move on. Why, you may ask, would Apple want to walk away from the hottest mobile device in years? Because it isn't equipped to handle the demands of the nonstop mobile phone market, that's why.Dvorak lays out Apple's slim chance in the handset business:

The problem here is that while Apple can play the fashion game as well as any company, there's no evidence that it can play it fast enough. These phones go in and out of style so fast that unless Apple has half a dozen variants in the pipeline, its phone, even if immediately successful, will be passé within 3 months.

There is no likelihood that Apple can be successful in a business this competitive. Even in the business where it's a clear pioneer, the personal computer, it had to compete with Microsoft and can only sustain a 5% market share.

And its survival in the computer business relies on good margins. Those margins cannot exist in the mobile handset business for more than 15 minutes.

And note that the Microsoft versus Apple battles are laughable compared with the frenzied marketing mania in the handset business. Even Microsoft has troubles with its attempts to get into a small sub-segment of the handset business with its operating system.

Dvorak warns Apple that its very reputation is on the line and that if the iPhone flops, it could be disastrous for the company's public image.

I don't know I would go that far or not, but I do find Dvorak's skepticism refreshing. The iPhone is by no means a guaranteed success and its good to see that others out there are finally waking up to this.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Slideshows
Flash Poll