Fast Talk

Drop their prices. Obviously the technology is affordable now, and even if the download speeds on the Blackberry are slightly better, people are going to go with the more attractive and coveted product, the iPhone.

Now that the iPhone is available for $199, Nokia, Blackberry, and friends need to not only drop the price but find a way to separate themselves with advances in technology as well. Rachel is right about the iPhone being more attractive and coveted. It is more of a stylish status symbol than anything else, and now that it is more affordable and practical to the businessman, the other smart phone makers have to find a way to make their products even more affordable and practical, because we all know they're never going to be more stylish.

No. I think that people may initially be upset and hesitant over the change, but the convenience of e-shopping is still there.

I didn't--and still don't always-- like shopping online because of shipping costs, but I eventually caved in. I think the same would happen if a sales tax were applied.

The iPhone Effect states that that Apple has developed such a highly coveted product that other cell phone makers must come up with better products if they expect to compete with the 3G. RIM's Curve smartphone offers similar features to the iPhone at half the price, and Nokia N95 and others are in competitive price ranges. The iPhone will trigger an overall increase in the amount of smartphones used worldwide and other makers will benefit. How much, though, is up to them. A question I have is this: if the 3G iPhone is $199, is that price offset by the $10 more per month we will have to pay for data, etc.?

Since iPhone has decimated the competition by launching early, all Nokia, BlackBerry and any other smart phone manufacturer can do is...follow the leader.

The numbers are in: Apple sold 6 million iPhones so far. Take the early adopters, plus the army of buyers who came on board when they dropped the price, you are still looking at over $1.8 billion.

The only way the other manufacturers can repair the damage, is if they invent a phone that can help me fly.

From the 22 Immutable Laws of Marketing: First to market (in the consumers mind), wins!

make there products better than before but they shouldnt try to copy the theme of the iphone

First, they need to catch up to the iPhone's killer apps: Wi-Fi, Internet, excellent browsing experience, great data synching (contacts, documents, music, etc.), awesome MP3 player. Next, they need to patch the iPhone's shortcomings, namely in extendibility (memory, battery, etc.). Obviously, competitive pricing will be an absolute must to get over the iPhone's sexiness.

I think Nokia and Blackberry have no hope. The iPhone is a killer. But Apple is lately doing too many marketing mistakes and stabbing its most faithful customers in their back - ie: the iPhone first adopters who spent $600 for a product that only 12 months after sells for $200. The mandatory 24 months contract with AT&T was another huge mistake made for greed on the side of Apple. Neglecting the rich European markets has been another bad mistake. see:
http://www.vertygoteam.com/apple_marketing_strategy.php

But, frankly, I do not see what Nokia, Blackberry & the others can do. The competitive advantage of the iPhone is too wide and Apple is at least 5 years ahead of its competitors.

Design a better phone.

Good question. First, I wouldn't panic, there's plenty of market share to go around. The iPhone, like a Porsche, isn't for everyone. They should make sure they understand who their products are for and make sure they're delivering on those key points better then the next guy.