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30 juin 2007

IPhone faces fierce competition in the market for mobile phones

As the American group "Apple" launches its mobile phone "IPhone" on the U.S. market, a fierce competition has begun between manufacturers of mobile phones that combine the benefits of telephone and mobile radios connected to the Internet.

Apple hopes that his mobile phone, which will include the ability to surf the Internet, enjoys the same success with its product "IPod". But experts in the field of telecommunications believe that "Apple" must prevail in the market so that the group can achieve its objectives.

According to experts, competition in the field of mobile telephony will not be easy, as was the case of "iPod" because manufacturers as "Nokia", "Sony Ericsson" and "LG" have already started to produce phones that can be used also to listen to music.

In order to promote the "IPhone" in the market, Apple has decided to sell the phone exclusively in its 162 stores throughout the USA, and shops belonging to "ATT", the first provider of telecommunications services in USA. Those who want to buy the "IPhone" must become clients of "Att" for two years to be able to use it.

However, David Kerr, economic analyst at "Strategy analytics", says that this procedure does not guarantee to "Apple" to control the market. He thinks the competitors of "ATT", such as "Sprint Corp Nquestel" or "Wireless Version", which is the the fruit of a partnership between "Version Communications" and" Vodafone", will not stand idly by. "They strive to provide the same service by other producers of mobile phones", he addes.

Although experts have praised the new phone, especially for the size of its screen, and his technology, the dilemma with "Iphone" is its price which varies between 500 and 600 dollars, depending on storage capacity (between 4 and 8 GB). This high price dramatically limits the market. The studies point out that 85% of Americans do not spend more than a hundred dollars to buy a mobile phone.

Kerr believes that if "Apple" has launched the "IPhone" at a price of 150 dollars, it would have made a deathblow to these rivals. He says that "LG", "Samsung", "Nokia" and "Sony Ericsson" will be more attractive after the fall of their prices.

For Avi Jerinjart, economic analyst at "Corenth Analysis", he believes that "IPhone" should not face such a competition, since it is an innovation. "Instead of the traditional keyboard, IPhone is using the touch technology...In addition, buyers want to always have everything that is modern and fashionable", he addes.

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