Edward Snyder, an equity analyst with Charter Equity Research, said that many people would be turned off by the price; older customers who can afford it, he said, will not care about all the fancy features of the iPhone, while younger ones who are excited about the device will not like the cost.
Over all, Mr. Snyder said, the iPhone will appeal to maybe 3 percent to 5 percent of wireless phone users. And he said he was skeptical that it would work as well as advertised.
Where have we heard this story before?
- Too expensive
- No new features that aren’t already out there
- Lacks features of other models
- Market too small
- Locks people into a proprietary network
Yes, ladies and gentlemen, it is the iPod all over again. It is expensive. Only a small percentage of the population will have them. Unfortunately for you, it is the coolest percentage of the population. A percentage that is almost 100% Influentials. People who are connected enough to make use of the iPhone and have enough disposable income to splurge on it. And then, when people are paying the high price to get them because the Influentials have them, the price will be lowered, and Apple will be measuring their daily sales in tons.
And for the price that everyone is scared of? It is exactly $100 more expensive than the first iPods, for roughly the same storage space.