Mike Butcher

On the eve of its launch, courtesy of Frukt Music, comes an analysis of the strengths and weaknesses of the iPhone:

Strengths:

- Apple approach: a)great product, b)simple usability, c) clear communication

- Dual-contact touch screen, twice the resolution of average computer screen, full-detail web pages with easy zoom-in feature, easy-view photo software, extra Google maps functionality (traffic details, fake GPS), easy music/phonecall switchover via headphone button, integrated email, phone and web features and other technological advancements will appeal to early adopter Apple fans

- Relies on tried-and-tested iTunes software – already a hit with consumers

- Easy to activate iPhone at home using iTunes

- YouTube link-up allows users to view videos over WiFi

Weaknesses:

- Apparently no way to record video – so no instant uploads to YouTube

- Sealed-in battery. Must send it back to Apple for a replacement.

- No memory card slot

- Over-the-air content delivery not part of initial iPhone plan (although not a critical concern: for every iPod bought, only 20 tracks on average are iTunes purchased, most are transferred from CD or illegally downloaded)

- Strength/Weakness: High price point ($499/$599 at launch) will only attract early adopters (J.D. Power: Typical U.S. phone user in 2006 paid $94 for a mobile). Although, for the initial model, perhaps early adopters are the sole target market (modest Apple sales targets of 10M globally by 2008, less than 1% of the mobile handset market)

If the rumour that T-Mobile is in the front line to take the iPhone in Europe then the new rumour that the Apple iPhone will also be available on a pre-paid contract is pretty interesting. The Boygeniusreport.com says they got a few screen shots sent to them which show internal AT&T account codes showing the iPhone available to Pay As You Go subscribers with AT&T in the US. This would widen the market for the iPhone considerably, especially in the US where customers are generally locked into contracts for a long time. If the iPhone is pre-paid in Europe then expect a massive run on the phones – and yet more power to the iTunes music store.

Public Enemy’s New Wireless Order: Public Enemy (which pioneered using MP3s) is getting into wireless. On Nov. 28 the group will make the music from its new album, New Whirl Odor, available through wireless phone networks using distribution technology from privately held m-Qube. “It’s like the Internet in ’98, but with a business plan,” says Walter Leaphart, who manages Public Enemy leader Chuck D.