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Carl Howe has a point. In his note on why the iPhone doesn’t do high-speed mobile phone networks, Carl offers that Apple (AAPL) may be keeping the door open for deals with mobile operators outside of North America. Agreed.

He also argues that Apple probably did not want to embarrass Cingular by shining a spotlight on the inadequacy of the operator’s HSDPA coverage, or hang the iPhone’s success or failure on a half-built network. Agreed on both points.

But I still don’t see how Apple can hit its numbers (10m units in FY’08). In fact, I agree with Eric Savitz of Barron’s. Why?

1. Bad surf. When it comes to web surfing, EDGE will provide nothing but frustration. Wi-Fi will fill the gap when available. But outside of the home, Wi-Fi usually suffers from a case of authentication heartburn — messing with credit cards and security keys. If it can’t handle high-speed access to the Internet, then don’t call it a breakthrough Internet device that can “read a web page while downloading your email in the background over Wi-Fi or EDGE.”

2. Bad price. Apple’s iPhone pricing is at the high end of even the Treo smartphone range. Phones in that category are justified by enterprise applications: calendaring, email, contacts, and task lists. Apple has no such apps on the iPhone. This is not say they couldn’t offer them. In fact, Apple would be very smart to get a skinny version of a Microsoft Exchange client on the iPhone as soon as possible.


Source: Is Apple Just Dreaming iPhone Dreams?