iPhone-YouTube deal: Bunch of hype?


Today, Apple (NASDAQ: AAPL) announced that Google's (NASDAQ: GOOG) YouTube will be on the iPhone.

Yes, that's the kind of thing a PR person likes to handle. How can it not generate buzz?

But is this mostly hype?

I had a chance to talk to Dipanshu Sharma, who is the founder of V-Enable and an expert on wireless, and he thinks it is:

"Apple is trying all kinds of hype pre-launch, to the point that now they are misguiding the consumer. YouTube launched a mobile version of their site last week, which works on pretty much on any handset with a high speed network connection. To run a similar experience on iPhone, the user will have to be at a Wi-Fi zone because the cellular radio that it comes with is 2.5 G (EDGE ~100Kbps), which is very slow for video. If apple is expecting their customers to be sitting at a Wi-Fi Zone and log in to a T-Mobile hotspot at Starbucks (NASDAQ: SBUX) to watch youtube, they are taking to small fraction of early adopters. It's not the mass market that has embraced the simplicity of the iPod. Creating false expectations may prove costly to Apple and its shareholders. I had a Nokia (NYSE: NOK) N80 with Wi-Fi and the only time I used Wi-Fi instead of EDGE was when I wanted to see if Wi-Fi worked. It's too much of a hassle to tell the phone which connection to use."

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

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