Sunday, December 23, 2007

iPhone is not a Phone, Its a Substitute for that Ferrari You Can't Afford

Time and again, people bring up the fact that phones with similar features from other vendors and on better networks may be available for way less than the cost of an iPhone. Its probably true that iPhone is not the best phone in the market today. But who cares? iPhone is not competing for the phone dollars but in stead is a possible substitute for the following:
  • Diamond Necklace for your Love: Guess what, she would love the iPhone more even if its not forever. (Okay, so she probably wants both.)
  • Expensive Shoes: With an iPhone in your hand, your friends will be eating out of the palm of your hands. Who looks down?
  • Employee Bonus: I recently asked a few friends in an informal survey - what would they be more happy with a 2% bonus increase or a new iPhone? These are all math and engineering whizzes earning over $100K and the answer was uninanimous - an iPhone. If I were an employer, I would be giving out iPhones not cash.
That Touch Screen Phone is Not an iPhone: Its a Phony

As expected, several other players in the market are launching phones that look like an iPhone, have perhaps even more features and are cheaper (or expensive if that's what you want). The problem is that many iPhone buyers are not trying to buy a phone so competing as a phone does not really work. I feel bad for other vendors - even if they build a better mousetrap its still not an iPhone - its a phony.

Ten Million iPhones

There are news reports that expect Apple to reach its iPhone target of selling 10 million iPhones by 2008 to be reached by January, 11 months ahead. I am not surprised. I am on vacation in India where the iPhone has not even launched and I have seen a few people with iPhones and there is much talk by those that are in the know. The trendy elite. This implies two things - the success of the iPhone has a high likelihood; and, they don't need to spend as much on marketing.

I also saw my 10 month old niece intuitively play with the iPhone flipping through the photo album. Clearly, she has no clue that Jobs is God or that Apple products are supposed to be cool.

What Would You Rather Receive?

An iPhone or a 0.5% cash bonus? Please leave your answer in the comments.


Anonymous said...

0.5% bonus depends on your annual salary. If one earns more than 150K , 0.5% bonus after taxes is more than the cost of a iPhone.

But then the 0.5% bonus must be a guaranteed bonus.

This beckons another twist to your question ... why do companies not give cool things for employee tenure - i.e. an employee getting a iPhone on his/her 5-year anniversary will be elated !! and would certainly appreciate this as loyalty rewarded.

A said...

iPhone :)))))))

Anonymous said...