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July 16, 2008

Apple – Sells 1 Million Handsets in 3 Days – Good Numbers for the Consumer

Analysis of: Apple sells 1 million iPhones in first 3 days | ap.google.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
P.J. Louis
President, PJ Louis LLC
Implications: I have been one of the loudest critics of the iPhone.  Lately it has been acting like the good vendor I expect handset vendors ought to be. Yes, I know the company is a driving force in the industry but it is AT&T’s customer. This is good news for the consumer. I have a few suggestions to the carriers and vendors.  

Analysis: Despite the fact that Apple’s old iPhone users had some severe problem, the problems were short lived and I chalk it up to inexperience in the handset business.  The numbers are impressive for a vendor like Apple.

Even more impressive, is that thanks to Apple, AT&T has been able to generate interest in its 3G network.  It is amazing what a brainwashed customer group will buy.  Hey, my hat off to Apple’s sales team.  You just cannot make this stuff up.

The important thing for AT&T customers who don’t want to buy the handset is that AT&T will likely start promoting like mad other handsets as well.  Carriers cannot be held hostage by any supplier.  If the supplier gets out of control, the supplier needs to be slapped down hard.  AT&T is a carrier and it clearly understands maintaining control over its customer base.  Control may not be the best term; maybe we can use the term “lead customer contact”?

Carriers that allow vendors to start dictating how their voice or content business will be managed need to get their heads out of the ground.  AT&T needs to aggressively push their other handset vendors to do more and better than iPhone.  AT&T needs to drive down its costs and the costs to its subscribers even more.  AT&T owes it to their customers to increase the diversity of handsets made available to them.

Carriers, like Verizon, need to use the Apple as a lightning rod for action.  Other vendors need to begin planning and implementing new handset features.  More power to consumer choice.  Down with exclusivity.

Other Analyses of the Same Source Article:
iPhone will not rule forever
July 17, 2008, Author: GLG Expert Contributor

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