Monday, June 04, 2007  

Exclusivity may deter iPhone sales

Apple Inc says that it will start selling its latest most talked about and anticipated product, the iPhone, this 29 June in the US. It also said that the iPhone will only be sold exclusively at Apple stores and the service provider, AT&T Inc.

I say that this exclusivity will only deter iPhone sales.

My reasons:

First, by only having two main channels for distribution gives them no competition, especially over pricing. This may end up with consumers having not much places to go in search of a 'good deal' when it comes to buying the iPhone.

Second, it may prove to be quite costly to own one. For those who want to purchase the iPhone at a 'cheaper' rate may have to change their service provider to AT&T, to get it with a contract or line.

Consumers may need to terminate their line, pay an additional fee (usually US$200) for an early line termination, and sign up with AT&T. This may be quite costly and they may not be willing to fork out that much for a phone.

Third, consumers may sign up with AT&T anyway for a plan and the iPhone. This means that they may end up seeing bills from two different telcos at the end of the month.

Yes, the iPhone is one darling to have. Embedded with all the good things Apple has to offer from the infamous iPod to the touchscreen functions, it's no wonder that people are talking about it.

To only have it available to AT&T, the service provider, will definitely boost its service plans and awareness, but it may also steer potential buyers the other way.


Nurwidya Abdul

P.S: You may want to checkout this website on youtube.com. It's quite hilarious and nothing serious, really!

http://www.youtube.com/watch?v=xcjLEwZqcQI

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