iPhone: More Fun Than Phone

Source: Business Week September 1, 2008; Pg. 20

Author: Olga Kharif

Concept:Customer Value

Brief Synopsis: People who have bought the iPhone are less than pleased with all it has to offer. For some, up to 40% of calls are being dropped. A source close to Apple blames it on a chip from Infineon that manages wireless communications, while Infineon spokesman says the chip performs smoothly with Samsung phones. iPhone owners have turned to using a different phone, mainly the Blackberry, as their primary phone and keeping the iPhone for internet searching and video viewing. According to the article, the iPhone is a cool toy, but it's a phone and that is what people need to to be first. Instead, Apple should change the name to iTablet.

My Thoughts: From the article, it seems as though Apple has not been successful at creating value for its customers with its iPhone. Likewise, customers do not perceive this phone as having value. In all reality, most of the users, according to the article, aren't even using the iPhone as a phone, but instead as a device for surfing the web on the go. Considering the price of the iPhone, one would expect to be able to make phone calls without having them dropped a little under half of the time. I suppose if a person only bought the iPhone for web surfing purposes value could be perceived, but I believe the iPhone is unsuccessful at creating value for the majority of its owners--Apple needs to watch out for competitors who will undoubtedly design a similar phone that *gasp* actually makes phone calls!

*I personally do not have an iPhone but after reading the article I don't plan on getting one. Hopefully those of you reading this who have this phone have had better luck than those in the article!