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From iPhone to iBrick
From iPhone to iBrick Is Apple doomed in lieu of the iTunes/iPhone crash? The new iPhone 3G was released on July 11th, 2008. It was supposed to be better and cost half as much as the original, first generation iPhone. This was a god send for a lot of people, because the first generation iphone cost $600. You could practically buy a new desktop computer for that price. Now in terms of comparable devices that price was extremely high. Now that the new version, or second generation iPhone was supposed to be half that price it would be a lot more comparable in terms of price to other devices like SmartPhones and Pocket PC's. However in terms of functionality it one up's the other devices due to its seamless connectivity to iTunes, and its ability to use the fastest mobile broadband available, 3G. Only a select number of devices can use 3G. Apple more or less took the iPod and merged its functionality with the iPhone. The buzz surrounding this launch was so huge, that a lot of investors were worried about the new iPhone, possibly replacing Apple's wildly successful iPod. Now if you know some investing history, prior to the iPod, you could get shares of Apple for about $20. Now the stock price is somewhere around $170. Even though investors worried, I doubt this new iPhone will hurt Apple in anyway. In fact the new device will basically, get a lot of Apple faithfuls switching from their current carrier over to AT&T Wireless, which is the exclusive wireless carrier for the Apple iPhone. What do you do when you launch a product that is so successful that it makes your stock price soar to nearly 8 times the original value? You wash, rinse, and repeat. Basically, Apple will have people, not replacing their iPod, but just adding another Apple device to their electronics collection. If Microsoft isn't careful, Apple is going to creep in from the back and take their market share away. I mean if you have an Apple iPod, an Apple iPhone, an Apple iTV... what type of computer are you going to buy? Hmmm... my guess would be Apple. Apple will eventually have their OS running the applications consumers and businesses alike need. When that day comes it will be the death sentence for Microsoft, and the re-birth of Apple. Now moving back to the original question at hand. Is the iPhone 3G catastrophe going to kill Apple's business or stock price. Absolutely not. Even though practically all customers' phones crashed because of the new firmware, and none of the new phones could be activated, and it crashed the iTunes site... this will be a tiny little blip on their radar. This more or less let the world know that so many people wanted the new iPhone, and so many people wanted to upgrade their existing iPhone, that it essentially crashed the iTunes site. I don't know how specifically, but iTunes is somehow used to update the iPhone. Could Apple Have Avoided the iPhone Catastrophe? Now onto other things. Could this have been avoided? I believe so. I mean if Apple would have waited 2 weeks to update the old phones, then half of the traffic would have never hit the iTunes site. The volume of traffic is what crashed the site, in case you were wondering. In addition they could have released the iPhone one region at a time. they could have gone by time zones or something. They could have release the iPhone in 1 timezone per day. But they didn't. It is even possible that they could have done this on purpose just to get a bunch of PR. I mean even a little bad PR, can still be good PR, right? There were some articles about this iPhone crash that had like 1600 diggs. That is a lot of diggs. They even somehome managed to come up with a catchy new word, the iBrick. That is exactly the state a lot of iPhones were in. It was about as useless as a Brick to them. |
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May, 2012
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