Industry insider: iPhone is a disaster

Even as industry sources leak the news that 3 million iPhones will be ready for sale at launch, doubts are starting to surface that the iPhone will be as popular as it is widely expected to be.

Two sources, speaking to Peter Burrows at Business Week, revealed that Apple plans to have 3 million iPhones ready to sell in the US on June 29. Both Apple and US distributor AT&T have received more than 1 million iPhone-related inquiries each.

According to Burrow, analysts are predicting the Apple will sell around 3 million units this year (Apple hopes to sell 5 million) and 10 to 12 million in 2008 (Apple hopes to sell 15 million).

However, analysts, such as Piper Jaffray's Gene Munster, predict that iPhone sales will really start making headway in 2009 when it's likely that Apple will have launched low-cost iPhone variants, made deals with carriers to offer high-speed Internet access, as well as moved into overseas markets. Munster predicts iPhone sales of more than 40 million in 2009.

However, even as Burrows paints an upbeat picture of iPhone prospects in his article, he also raises some doubts:

"And with its touch-screen keyboard, powerful battery-sapping processors, and a panoply of new applications, the iPhone is far more complex than the iPod. Glitches could lead to costly recalls and returns if buyers find the phone buggy or confusing."

These doubts are echoed by iPhone-skeptic John Dvorak, who believes the iPhone will be will be popular in the short-term, but then go out of fashion. He's not convinced that Apple can jump into the "deep end of the mobile-phone swimming pool without knowing how to swim".

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Dreamworker4740d ago

the competition is doing and shows up whit. I guess a cell phone is coming with bigger HD maybe a Keyboard & Touch screen

MK_Red4740d ago

It could be the next Newton but also has a chance of being next iPod.

tk4740d ago

It is an apple. It will be the next thing models and stars will be carrying around. It is a fashion statement. And more than 3 million will be shelling out money for it in 2007. I won't be one though. Will wait for the PSP phone. But dang - Apple knows how to make something look sexy....

codeazrael4740d ago

to get the slim and sexy goodness that is the iphone. and I could care less about a psp phone. are you kidding me? those things arent even that popular. i want my iphone...........oh, the smell of it, the taste of it!

dikturbo4740d ago (Edited 4740d ago )

Sorry, I placed my reply in the wrong place.

Xi4740d ago

the rest, are happy with having their mp3 player, and cell phone, or having a perl/pocket pc.

dikturbo4740d ago

As a business owner that consciously operates the entire company in Mac, my biggest problem with any type of pda and/or cell phone is the absolute lack of an effective convergent product with Apple. In my industry (printing/graphic arts and publishing) virtually every member operates in Macintosh. I will be adding this tool to the entire sales and management staff once it has been proclaimed stable and is readily available in Canada.

This is a business tool not a toy for children. Put me down for 20 iPhones.

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