Date: Thursday, March 23rd, 2006, 10:18
Rumors are flying about an iPhone being manufactured in Taiwan. What are the pitfalls of an Apple branded iPod phone? Clearly, the biggest problem is that the mobile phone providers think they can sell songs over their networks at prices much higher than the iTunes music store. I doubt it, but that does not stop them from thinking that way. Most people get their phones heavily discounted or free from their service provider in exchange for a service contract that typically lasts two years. Very few people pay retail for a phone, even though doing so gets you an unlocked, uncrippled phone with no multiyear commitment to any particular service. An iPhone will not succeed without subsidy and branding from Cingular, Verizon, and T-mobile.