Apple’s Price Reduction & its stealth mobile computing initiatives

Fortune (via LocalMobileSearch) reports that Apple will be reducing the price of the iPhone by $200. As Greg points out at Local Mobile: Price Matters!

The new price will drive adoption of this fully functional mobile computing device masquerading as a smart phone at a faster rate. Apple’s mobile computing strategy became very clear this past month while visiting a childhood friend who had up to the moment of our visit had steadfastly maintained his Luddite approach to computing.

His wife had purchased him an iPod Touch for an upcoming 20 hour vacation flight to Bali. Upon our arrival he proudly showed me his new toy (remember this is a guy that like me, buys a new car every 15 years whether he needs to or not) and told me how he was going to listen to Dylan and the E Street Band on his long trip.

I started tapping away and noted that it would be a simple thing to hook it the internet via his wife’s laptop which he agreed to. From that point on, each morning and evening he had me implement and train on an ever increasing number of internet capabilities….he started downloading podcasts by Amy Goodman, buying a few videos for the trip on iTunes, discovering the joys of Google Maps (you mean I can look up restaurants? show me!) and incredulous that he could now read his email anywhere.

Last I heard from him was an email from the Tokyo airport about a sock that my son had left buried in the den couch.

Apple, in focusing on the killer app (either music or phone calling + music) has developed a very seductive and appealing way to bring not just the technorati but the ludderati as well into the age of mobile computing. These new users may just leapfrog the desktop that they were so resistant to and in doing so make computing (and local search) a much more integrated part of our every day life.

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3 thoughts on “Apple’s Price Reduction & its stealth mobile computing initiatives”

  1. I’d love to have an iPhone. My problem?? I find the service with at&t to be abysmal at it’s best.

    I have several complaints on file regarding at&t and their chronic wireless internet access in my area – no reply.

    Once a more customer service oriented company makes iPhone available I’ll happily by one – maybe Nordstrom should start selling them….

    David Saunders

  2. While I love the iPhone I hear you on ATT. Surely being tethered to AT&T does limit adoption of the iPhone. There were some rumors that the Apple will untether them but that remains to be seen eh? Given that we are now in an oligopoly type situation with cell service in the USA it is unclear how much at this early date/cost structure it affects Apple. Obviously in the long run it will be a huge issue limiting market share. By the same token I see no one who has such a powerful mobile computing strategy as the stealth iPod/iPhone plan.

    I don’t yet have an iPhone. Although where I live AT&T and verizon have equally good/bad service so it is a toss up. Been working with Macs long enough to know that I want to buy the b rev if given a choice and lack of need (funny word eh..to need an iPhone) so for me its a likely purchase when my current phone dies..

    Mike

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