A letter to The New York Times

Dear The New York Times journalist,

I do realize that Apple’s 3G iPhone is one of the most talked about consumer products today. I do realize that people are still interested in hearing about 3G iPhone, its merits, and demerits. But then, haven’t you already discussed this issue to death?

When you came up with the brilliant discovery that the new 3G iPhone actually costs more than the old one, I was really taken aback. And if you remember, I already wrote a rebuttal for that. And now, you come up with this. What do I say?

The story is this – Apple sells its iPhone for $600 to those who don’t want the two-year contract with AT&T. Those who come under the contract can pay just $199. You see, we’re fine with that. But then, when you quote some market research firm and say that the iPhone is actually worth only around $170, aren’t you stretching things a little too far?

And how the hell did someone come up with that arbitrary figure? Based on the cost of the hardware components in the phone alone? Hello, ever heard of something called R&D? When you price a product, you have to take the cost of R&D, designing, and marketing into consideration. So, claiming that the iPhone is worth only around $170 based on the value of its components is not just incorrect, it’s plain stupid.

Sensationalizing issues is better left to bloggers like me. You, being a journalist, are supposed to be neutral and most importantly, well informed.

Thanks.

Categories: Rant, Apple iPhone.

0 comments.

Microsoft to buy mobile software company MobiComp

The game of mergers and acquisitions is on for sure. After Nokia’s successful acquisition of Symbian, it’s now Microsoft’s turn to get into the act. Microsoft announced a few days back that it will buy MobiComp, a Portugal based mobile software maker.

MobiComp is particularly known for its apps related to data protection and sharing. MobileKeeper Backup & Restore, an app which stores and backs up mobile data, and MobileKeeper Sharing & Communities, an app which connects the mobile phone with social networking communities on the web, are the two most important apps that Microsoft is said to be interested in integrating into its Windows Live Mobile.

Microsoft has not disclosed the cost of this acquisition and the terms of the deal.

I think this acquisition will do loads of good to Microsoft and will serve as a morale booster. Apple made news with 3G iPhone, Google is almost always in the news with Android, Yahoo is going great guns, and now Nokia has made headlines all over the world by buying Symbian. Microsoft needed something to get back into the limelight as far as the mobile market is concerned and it has come in the form of this acquisition. The competition, my friends, is only going to get more intense.

Categories: Microsoft.

0 comments.

Could 3G iPhone become a mobile advertiser’s dream?

No publicity is bad publicity, they say. If that’s true, then Apple can be proud of what they’ve achieved in the past few days. With the release of the 3G iPhone, they’ve made everyone, including yours truly, say something about it. As you can see for yourself, the internet is full of people expressing their opinions, as mixed as they are, on the new iPhone. Isn’t that what Apple exactly wants?

Thankfully, AdAge has come up with an article that stands out a little from the crowd. It looks at the 3G iPhone as a potential marketing weapon. The new features, the rich look, and the extremely good user interface of the new iPhone make it a very good choice for mobile advertisers around the world. However, instead of the usual banner ads, text message ads, and MMS ads, adverts in the new iPhone will be a lot different.

In the new iPhone, software is the content and content is the software. In other words, marketers will focus on building web applications for the iPhone and market them more effectively. The key is to think of a mobile application and then find out if there is actually any demand for such an application. Once you’ve found out the right app which users might make use of, you’re on your way to market your product or service in the most efficient manner ever. For example, a mobile game developer could come up with a kickass game for the 3G iPhone and allow the users to download it for free. This will give him more publicity and exposure than a measly banner ad or a text message ad. Because apps are something that the users look forward to using, the issue of unsolicited, unwanted mobile marketing is out of question. Check out the article and tell me what you think of it.

Categories: Apple iPhone.

0 comments.

So, what’s your take on the new 3G iPhone?

When I blogged about the new 3G iPhone, I didn’t look into the data plans and other stuff related to it. I blogged about its features, its cool apps, and of course, its discounted price. Apparently, not everyone is happy about that.

Both the New York Times and CNN have stories regarding the 3G iPhone and while the former says that it’s a step backward for the consumers, the latter says that it’s not so cheap after all. The bottom line of both stories - though the new iPhone looks cheaper, it’s actually more expensive than the old one as it has more hidden costs. Let me explain.

Though the prices for the 8GB and 16GB 3G iPhones have been slashed, AT&T will actually pay way more than what it will charge its customers. It means, it has to recover its costs in some other way. So, the rate of the data plans will be increased. Also, you have to sign an exclusive contract with AT&T for the new iPhone for two years and should you try to terminate the contract before that period, you’ll have to pay a hefty termination fee.

Let’s do a little math.

You pay $199 for the new 8 GB iPhone and pay $69.99 per month whereas you paid $399 for the old iPhone and paid $59.99 per month. So, for a period of two years, the new iPhone will cost you $40 more than the old iPhone.

Considering this huge amount of $40 for a period of two years, both the New York Times and CNN have decided that the new iPhone is costlier. I have nothing against their point of view, but then I’d have to say that it’s utterly myopic to come to such a conclusion.

The $40 increase they talk about is not something you pay at the time of purchase. You pay an extra $10 per month, which I think is completely reasonable considering the features I get to use in this phone.

Now, to the people who point at the iPhone and cry it’s costlier. I ask you - is it necessary to split hairs over an increase of $40 for two years? Is it that big a deal? Wow; it amounts to a whopping 5.6 cents per day. Is it that big an amount to stop you from buying a better, faster, improved phone? Anyone has answers?

Categories: Apple iPhone, All things mobile phones.

1 comment.

Apple to release its 3G iPhone on July 11

The long wait is over folks. The much-awaited 3G iPhone from Apple will be out on July 11. There is a hefty price cut as well, as the price has been slashed by $200. You can get the 8GB model for $199 and the 16GB model for $299. If you’re one of those early birds who paid $499 for your iPhone, well; I can understand your plight.

Before I get into the details, it’s worth remembering the ‘cause’ which triggered this effect. When Apple released its hugely anticipated iPhone, the response was overwhelming. However, soon there was a complaint that the iPhone was a tad too slow when it comes to browsing the internet. This was a major letdown and Apple had to do something about it. Out came the idea for a next generation iPhone which will offer superior mobile web experience. And now, here we have it.

Alright; back to the current scenario. Steve Jobs has promised that this 3G iPhone will certainly be ‘the phone’ which will stand out from the rest when it comes to mobile browsing and mobile web experience. He also promises that this phone will be more than 35% faster than its rival Nokia N95 when it comes to mobile web. This has made a lot of people sit back and take notice. Also, Apple thinks it can crack the working professionals/executives segment, which is a major market for Blackberry, with its 3G iPhone.

Another interesting thing about this 3G iPhone is the number of mobile apps it boasts of.

1. Mobile Me, which stores your emails, contacts, calendars, and other details in a server called ‘cloud’ and forwards your emails to your PC, Mac, iPod Touch, or iPhone. Whatever change you make in one device will get updated automatically in the other devices.

2. Cow Terry, a music making software, which lets you create songs on the go in your iPhone.

3. A mobile blogging software from TypePad

4. A social networking service from Loopt

5. An app from MLB.com which brings you live scorecard from major league games.

Overall, I would say the 3G iPhone is good. And it’s way better than the current version of iPhone that we’re using now. Most importantly, at $299, I think it’s quite a bargain. So, have you decided to buy it on July 11 or what?

Categories: Apple iPhone, All things mobile phones, Mobile Web.

2 comments.