9 thoughts on “Another Way the iPhone Is Hurting Rival Phone Makers”

  1. This makes sense. I believe a similar dynamic played out in retail with Macs and Ipods vs PCs and MP3 players. Apple would only give “10%,” vs. 25-30% required for other vendors. It’s economic lock-in behind superior product execution.

  2. It would seem that the answer for rival phone makers is to make a better phone. As bgurley points out, same thing happened with iPods and MP3 players. iPod and iPhone were not the first to market, just the best. No other MP3 player can come close to iPod’s market share. and while iPhone’s market share is still relatively small*, it revolutionized what consumers thought a cell phone could be. (*-of course iPhone is only available to AT&T customers for now, jailbroken iPhones notwithstanding)

    1. Oh, and I almost forgot to mention: the App Store. yet another compelling reason why iPhones (and iPod Touch) are so popular. Consumers are willing to pay for The Innovation Premium, and so it seems are wireless carriers, with good reason. No one else can (yet) match it.

  3. Except that there is other content besides music, and much of it is free (or time-shifted and paid for): Video and Audio podcasts, DVR’d shows transferred from a TiVo, as well as other pre-existing DVD/CD-rips. Virtually no one fills a (harddrive-based) iPod with just iTunes Store content.

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