Skip to Main Content
As if it were a comet we have been speculating about and tracking over the past two years, the iPhone is no surprise, but we still can't keep our eyes off it. Like the Apple II, the iPhone will arrive with an impact that affects several domains - financial, technical, and cultural. Although felt immediately, understanding its full impact will take years. Strategically, the iPhone will help Apple protect and expand its base of iPod devices into the domain of smart phones and converging devices. On the surface, the iPhone is an iPod with an integrated phone. The iPhone promises to build on Apple's coolness legacy. Moreover, it could quickly become known as the elite experience in a world that already has 10 billion mobile phones. Apple's initial 10 million iPhones will represent barely a tenth of one percent of the world's cell phone market. Early adopters will thus be special, members of the tech elite. If the iPhone meets expectations, it could create a new, unpredictable dynamic in the mobile phone marketplace.