Why Apple's iPhone is Not the Next iPod

It isn't All Bad News Though

While Apple is unlikely to dominate the cell phone market, its new device is expected to make a large mark on the smart phone market. And in the long term, once the company begins to diversify, producing iPhones of different prices, sizes and capacities, similar to what it now offers with the iPod, it could begin to make an impact on the cell phone market in general.

ChangeWave's survey corroborates this, revealing that while 28 percent of those polled stated that the new phone was too expensive, 10 percent stated that they would consider buying a 4 GB version of the phone if the price fell, and 20 percent stated they would consider buying the 8GB version upon a price cut.

Jason Snell points out that the potential appeal of the iPhone will also be bolstered by the huge fan following behind iPod. The iPod's appeal will have a trickle down effect on the iPhone because iPhone users will get not just any music player, but an iPod.

And there's a guaranteed silver lining -- even if consumers do not buy Apple's new phone, they are likely to benefit, as the phone is bound to drive innovation within the consumer electronics industry in general, and the cell phone industry in particular. "In the past, cell phones produced have been a combination of the preferences of cell phone providers and carriers, which means that features have been compromised and the phones, while good enough are never amazing. The iPhone necessarily will inspire better cell phones from other companies such as TMobile and Verizon, thus benefiting all users," explains Snell.

What's the Bottomline Here?

The iPod set an impossibly high bar, one that the iPhone will not match or even come close to. But the new device could still be very successful, particularly in the long term. By combining a phone, a music player and an Internet device all in one, while coupling them with the most user friendly interface it could conceive of, Apple aims to embody one of the most fundamental ideals that underlies modern day consumerism: convenience. This proposition is bolstered by the company's recent release of Apple TV, which wirelessly syncs the iTunes content off one's computer with one's TV -- once again aiming to maximize convenience.

For an increasing number of consumers, less has never been more than it is today: the smaller the better, the sleeker the better, the simpler the better, and the more consolidated the better. The iPhone is likely to emerge as a forerunner in this movement towards simplifying the digital media industry.