Apple (NASDAQ:AAPL) begins selling its revolutionary iPhone this summer and it will mark the end of the string of hits for the company. Billed as "your life in your pocket," it will sell for $599 with a one year or $499 with a two agreement through AT&T wireless.
The company has had a string of hits since it introduced the iPod and its shareholders have benefited sending shares from $7 in 2003 to the $100 they sit at today. The introduction of the iPhone will be the first miscue for the company and send its shares, priced for perfection tumbling. "Why?" - you ask.
More Isn't Always Better
The beauty of the iPod was and is its simplicity and singular purpose. It enabled even the most tech phobic of us to operate and enjoy it. Because of this, sales have been phenomenal. There are several versions of Mp3 player phones out there and none of them are big sellers. The reason? The market does not want them together. I do not want to have to turn off my music to get a phone call. If I am driving my family in my car and we are listening to the iPod, having to turn off the music to answer my phone becomes a major hassle. The same holds true for any event where I play the iPod. Why would I pay $600 for this, or, buy an iPod in addition to this, in order to avoid the hassle?
One Carrier
All of have cell phone agreements and have a cancellation fee. This varies from $100 to $150 dollars. This price need to be added to the costs of the iPhone for those who want it right away or it will cause a lag in initial sales. This lag will allow cell competitors to create their own, cheaper
