iPhone’s launch countdown

Apple Inc.'s imminent iPhone is quickly rising in the ranks of popularity before it has even hit store shelves. It is almost exceptional that we know so little about a high-profile mobile phone this close to its launch. For now, we know that the 4GB model is priced at $499 and the 8GB model at $599. However, the true price of a mobile phone is a combination of the device's price, the applications it offers and the price of the service contract.

For instance, an unlocked expensive phone that features GPS support and VoIP applications can save considerable sums over a period of two years. That's because its users can switch freely to low-cost mobile service providers, substitute it for a dedicated GPS device and use WiFi for long-distance calls. Of course, there are lots of unknowns. How well do consumers factor in long-term cost and substitution? How much do they care about mobile VoIP's cost-saving potential and the ability to switch carriers? At this point, there are no right answers for these questions, just speculations.

Apple and AT&T, the iPhone's exclusive distributor, have battled over many issues in their deal. In fact, some of Apple's demands were so unusual that they drove away Verizon, the original choice for the iPhone carrier. Thus, AT&T became the only alternative in the U.S., as Sprint-Nextel and T-Mobile would be too small for a major launch like this. This gave AT&T genuine leverage over Apple and that has likely resulted in some restrictions that may turn out to be controversial.

So, what’s the real interest and demand for the iPhone? M:Metrics, which tracks wireless trends, found that iPhone has gained the attention of 56 percent of British and 64 percent of U.S. mobile phone users who are aware of the new touch screen phone. The survey also said that 19 million Americans reported a strong interest in buying the iPhone, and two-thirds of about 11,000 polled are subscribers on other carrier networks. This is an early indication that AT&T's strategy to use the device to attract customers from competitors could pay off. Let’s wait until June 29th to see how this story plays out.