Will iPhone lookalikes-not-workalikes hurt Apple?

“No one in the mobile industry has been able to capture the design and elegance of Apple’s iPhone yet,” Dan Frommer writes for SIlicon Alley Insider. “But how much will ‘good enough’ rivals stunt Apple’s growth?”

Frommer reports, “This week’s Mobile World Congress trade show in Barcelona birthed a slew of new smartphones, from HTC’s new Google-powered ‘Magic’ to new Nokia and Samsung devices. Common thread: Many look (or try to look) like Apple’s iPhone, which is still the gadget to beat in the mobile industry.”

Frommer reports, “None of them, from what we’ve seen, is as good as the iPhone. But they’re getting closer.”

MacDailyNews Take: Apple is widely expected to debut the next-gen iPhone approximately 4 months from now, in June; right when 1st-gen iPhone owners’ contracts begin to lapse. So, the debatable statement that rivals are “getting closer” applies to an iPhone that will soon be ‘killed’ by the only company that can actually do it: Apple. The fact is, even now, none of these fake iPhones are really all that close. The ones that aren’t likely infringing on Apple’s patents have uni-touch or screwy, limited, often nonsensical multi-touch gestures, goofy designs, usually with antique physical keyboards, and all of them lack a real iPod and have no iTunes App Store access. Most of them are far from their release dates; they’ll launch well after iPhone 3.0. Hastily-launched fake app stores with 13 – or even 1,300 – apps available just aren’t in the same league. None of these iPhony makers is in the same universe when it comes to third-party accessories; just like iPod, Apple’s iPhone boasts a diverse, thriving economy that’s simply unmatched. Plus, many of theses iPhone also-rans offer crap support to Mac users, if they even support us at all. The iPhone remains multiple years ahead of woefully outclassed rivals.

Frommer continues, “It’s worth noting that “good enough” rivals have tried — and failed — to put a dent in Apple’s iPod business. But the cellphone business is different. Subscribers are often loyal to (or under contract to) wireless carriers, not phone manufacturers. And let’s not forget about the computer industry, where Windows is ‘good enough’ for 90% of PC buyers.”

MacDailyNews Take: Windows was sold to neophytes who bought what their misguided neophyte friends, co-workers, and family members bought in the days before ‘Net use was widespread and before Apple had a network of retail stores. Microsoft could control the message then through computer magazines, etc. But, Microsoft’s business model of duping the ignorant only works for so long. Eventually people wake up (the ‘Net helps this process immensely) and/or stumble into an Apple Retail Store and realize that what they thought was “good enough” isn’t really good at all. People simply aren’t as tech illiterate nowadays and, voilà, Mac sales have risen accordingly. Hey, you only live once, why settle for “good enough” when the very best – often at the same or even better prices when similarly-spec’ed – is right there in front of your face?

Frommer continues, “We think Apple would be smart to start breaking up its exclusive carrier distribution deals sooner than later, such as with AT&T in the U.S. AT&T has been a valuable launch and marketing partner over the last two years, but there are good reasons why two-thirds of U.S. wireless subscribers choose carriers other than AT&T. If the iPhone were on sale at Verizon, for example, there’s no way it would have sold 1 million RIM BlackBerry Storms over the holidays.”

Full article here.

MacDailyNews Take: While Frommer’s last point is well-taken, Apple should honor whatever agreements they’ve inked with their partners. That way future partners can confidently enter into deals with Apple. As the agreements lapse, the carrier-exclusivity issues in the U.S. and elsewhere can be addressed.

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