over the weekend i would have agreed with you but there's clearly a ground-swell how middle america is reacting to the product. you're right there's nothing superbly cutting edge except for the touch screen but ..... here's the big but ..... the common everyday person can now have a smart phone with push email, the internet on wifi and a media player. the iphone wasn't meant to compete with the blackberry as much as for all those razr that people generally hate. 50 million razrs have been sold and apart from the iphone there's no other game in town. blue have you even seen an N95?
The "razr that people generally hate"? That's why it was the most popular and best selling phone by far in the past few years? Why it sold over 60 million across the world? Jeez. I wish I could sell a product that people "hated" as much as the RAZR. I'd be richer than Jobs.
Common everyday people don't pay $600 for phones. Period. The only reason that dvd players became so popular was because you could pick them up for $40 bucks at Wal-Mart. Otherwise, we'd still be using VHS. Same as CD players. Same with cellular phones. $600 is a ridiculous sum of money for an average American (who doesn't make much more adjusted for inflation than an American 30 years ago). The only difference is purchasing power. Now you can buy a whole lot of ****, cheap.
The RAZR really took off when cell providers offered heavy subsidies on the phone and MOT started to pump them out ridiculously. And guess what happened? MOT is now losing money on the RAZR because it costs too much to make. Apple won't allow that. And it's precisely because they're offering such an exorbitant price on the iPhone that other manufacturers (like Nokia and MOT) think that they can provide better phones for a cheaper price. And the N95 is a good start. N95 has removable media, 3G, 5 megapixel camera, Symbian S60 (which has so many developers it's ridiculous), GPS, and a variety of other perks.
I'm not of the belief that the iPhone will flop. But I think that it's completely overpriced for the limited amount of features it offers. Bring down the price to $450 (8G) and I think you have the best phone on the market, bar none. Allow more dynamic programming capabilities (like writable docs and excel spreadsheets and 3rd party programming), 3G, more "killer apps" and suddenly $600 is a bargain. People are calling it a mini-mac. Except that it's not there, yet. It could be, sure...but you'd think that will all the time they had, the company would offer more "computer-like" functionality, like access to the memory as a storage drive, etc.