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Notes on tech

Notes on technology, business, enterpreneurship, economy, markets along with interesting general tidbits.

Still waiting for the iPhone from Motorola

3/24/2005 10:12:00 PM, posted by anand

(ob disclosure: I work for Motorola, but have NO inside knowledge about the iPhone 'project' or anything related to that. This entry is from an outsiders perspective)

In January 2005, Motorola announced that they are going to launch the iPhone mobile phone in mid-march. At a confab in New Orleans, Ed Zander said that the iPhone release would have to wait. Apple doesnt want to do a joint announcement unless the device is going to be available the very next day at the stores.

I think, the problem is deeper. The carriers are not very enthusiastic about the phone. They think that if the phone plays music from the iTunes store, then the user would transfer songs, already bought from the iTunes store for 99 cents, using bluetooth effectively bypassing the carriers network to download and pay for the song. The carriers dont make a dime with this model. They want users to pay for downloading songs from their own portal and then pay for data usage to download the song.

Motorola wants to sell more phones. Apple want to establish a firm foothold in the mobile music marketplace. They want to extend their dominance in the wireless world as well. The carriers want to make more money from subscribers, by way of making them pay for songs and the data usage. Until these conflicting interests are resolved, we the users would still be waiting for the dream iPhone.
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