No one can argue that iphone launch had the sizzle that hasn't been seen before. Selling 500,000 phones in a little over a day (up to Saturday) is amazing. Consideringno 3G support,$499 and $599 price points and the fact that95% of the phones sold are the more expensive and higher margin version. This is new product introduction at its best. It typifies perfect execution of innovation, product introduction, love of early adopters and higher margins that every manufacturer wants to command before products are driven to commoditization.
Everyone has talked about the lack of 3G on iphone and every analyst has asked Jobs and Cook to clarify their position. Smooth. Do you really believe the reasonsgiven byJobs and Cook, GSM being the worldwide standard, 3G chipset not being ideal for desired form factor, power consumption with 3G,addition of wi-fi making it a perfect experience etc etc? Think again.
This istheexecution of a perfectedproduct strategy.A better version later this year at the same price point(read: 3G, more attractive serviceplans from AT&T and Apple,and other bells and whistles), rollout in Europe, an upgrade rush by thesame early adopters who spent $599 just now (they need a reason to upgrade), a heavy price cut on the current versions (may be bring it down to $299) making it affordable for the mass market consumers. Repeat this over next few years paving a way for iphone to reach the global audience while continuing to keep early adopters motivated (to spend money of course). This my friends is a text-book example of good product strategy and pricing. Don't let anyone fool you into believing otherwise.
P.S. No, I didn't buy one. I visited the Apple store in Palo Alto on Friday before the store re-opened. But refused to be part of the hype around a business-user unfriendly phone. A blackjack to replace my Blackberry, may be. An iphone to replace by BB, think not!