20090610

iPhone, Pre-Price War

From iPhone 3G to iPhone 3G S you get a yawn, from $199 iPhone to $99 iPhone more buzz.

When the main innovations come from pricing, you know commoditization is under way.

And commodities is not what Apple is into.

Apple is hurting Palm because this competitor will never reach the same volumes with its Tre. Apple is hurting Samsung and LG. Apple is hurting Nokia. Apple is hurting the iPod Touch but who cares.

Apple targets the feature phone market : Apple wants to smarten it up because that's the only way to increase volumes.

Smartphone penetration is bound to accelerate, and it's always better to start first in the race. Provided you're profiled to thrive in this kind of environment.

The industrial challenge requires the ability to deliver much bigger volumes (no problemo), but furthermore to become even more reactive, to cope with shorter product cycles and wider ranges, to innovate constantly...

You want to see how competition fares in the app stores arena.



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