Operators to Take on Apple's iPhone
Apple's newest gadget, the Apple iPhone, is about to face some serious competition in Europe this spring. Twenty-three mobile phone operators with a collective subscriber base of nearly 690 million people are ready to jump on the bandwagon and introduce a new low priced flat rate service for its customers. MusicStation will give its subscribers the opportunity to have unlimited access to music downloads via their cellular phones for a flat fee of about $3.88 American dollars a week. Along with the cheap fee, the companies will also offer the services on cheaper phones. This puts Apple in a predicament since their new phone runs about $499 and charges $.99 per download. The companies in Europe realize that they can help attract a larger amount of customers simply by outdoing the more popular businesses. While Apple might be hurting themselves, they're actually helping the other small companies by bringing the idea of Mobile music downloads to the public. Other companies have had the idea but just not the ability to advertise quite like Apple. In the end, this could really benefit the smaller companies by using larger companies resources.
2 comments:
I believe that even though the cost for Apple iphones is high, people will still want to buy it for the social reasons. People will pay high amounts for certain things. It will help smaller companies, but I don't believe that it will hurt Apple.
I agree with Ms. Nelson that although the cost is high, people will still purchase the iPhone for superficial reasons. People like brand names, and Apple is certainly one of them. I think that another reason why people will buy these phones, is that Apple has proven itself a worthy manufacturer of quality goods. Sure there have been kinks to work out, but they have dealt with adversity and risen to the top. The iPhone will sell because people can be assured of quality, and of a warranty if the unit is faulty. What have these other, perhaps smaller and less known competitors proven to us as consumers? Not enough to get me to buy their product.
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