I cannot recall any other product that has received as much positive press as Apple Inc.'s (NASDAQ: AAPL) iPhone. I have tremendous respect for Steve Jobs and his ability to create so many popular products. However, there are four reasons I will never own an iPhone:
- I don't need all the functions it provides. The iPhone combines a telephone, personal organizer, music player, e-mail machine, web browser, photo storage and sharing, and other stuff into one device. I don't have a personal music player and I find the whole crackberry thing a bit rude -- particularly when people spend entire meetings playing chipmunk thumbs.
- It's too expensive. From what I've read it starts at $500 and the monthly service plan can run $60 and above. It's just not worth it to me to have all these functions I don't need in one device.
- I don't care what other people think about my personal communications device. Some people have spent a week waiting to impress their friends by being the first one to get their hands on this jewel. This does not mean anything to me.
- I doubt it will work as well as my phone. I've read that when an iPhone user needs to switch between functions, the user must return to the top level menu. So if I happen to be browsing the web and decide I need to make a phone call, it will take me longer than if I just made the call from my phone. Furthermore, The New York Times (registration required) reports that the AT&T, Inc. (NYSE: T) service may not be that great.
I am not immune to the charms of the iPhone advertisements I've seen on TV. Nor can I ignore all the rave reviews I've read. So for those who can't wait to get your hands on an iPhone, I have good news. I won't be standing ahead of you in line.
Peter Cohan is president of Peter S. Cohan & Associates, a management consulting and venture capital firm. He also teaches management at Babson College and edits The Cohan Letter. He has no financial interest in the securities mentioned in this post.
Why Facebook's Falling Share Price Really Doesn't Matter
Mark Zuckerberg and Priscilla Chan: A Romantic Facebook Timeline


Reader Comments (Page 1 of 2)
6-29-2007 @ 4:52PM
Taylor York said...
I'm sorry but this was a totally pointless post for this blog.
Talking about Sprint's recovery and the economics of the phone and it's halo effect are fine, but post your pointless babble on your myspace.
6-29-2007 @ 4:52PM
August said...
Sorry, but reading your article BEGS a questioning...
Then why have you wasted your time writing anything AT ALL, about something you don't intend to do? Perhaps to insert a little negativism into other folks euphoric little moment? Is it a cry for attention? A stoic declaration of individuality?
No big deal... just wondering what makes people throw spitballs for no apparent reason.
Respectfully,
August
6-29-2007 @ 5:05PM
jtufano said...
"I've read that when an iPhone user needs to switch between functions, the user must return to the top level menu."
It's obvious you have done barely any research. You see that one button at the bottom of the phone? It takes you to the top level menu. What a hassle..
Anyways, just because you don't like the iPhone, should I assume you pick your stocks based on emotions? Apple has a fantastic future, with or without you.
6-29-2007 @ 5:07PM
Paul said...
I'm old enough to remember the same reasoning when the the PC came out in the early 80's and the cell phones a few years later. And what about when Apple released the graphic user interface? Any time that somebody breaks the mold to create something new there are always those pronounce it useless. Mark my words, you'll own an Iphone before too long. Be sure to write about that event.
6-29-2007 @ 5:09PM
Manny Backus said...
Yesterday, I came across an article in the WSJ with a surprising conclusion: AAPL may be overvalued!
To reach this conclusion, they compare AAPL’s handset business with Nokia’s (NOK):
Since the iPhone was unveiled on January 9th this year, shares of AAPL went up from $85 to over $120. This has increased AAPL market cap in $34 billion. That means investors are valuing the iPhone business in $34 billion. That’s a lot of iPhones! But AAPL is expecting to sell only 10 million iPhones by the end of 2008.
Compare this to Nokia (NOK), who is expected to sell 550 million phones in the same period, and has a $108 billion market cap.
So NOK sells 55 phones for every iPhone. Yet its market cap is only worth 3 times as AAPL’s iPhone business. This doesn’t make sense in my book.
So what do you think? Should we short APPL and bet against Steve Jobs? (I never thought I would say that!)
Manny Backus
www.wealthpire.com
www.mannybackus.com
6-29-2007 @ 5:40PM
fog city dave said...
Okay, so you're bitter, smug and superior. Got it.
6-29-2007 @ 10:38PM
Hao said...
You Sir Is An Idiot!!
6-29-2007 @ 7:50PM
Jim said...
When cell phones first came out, I thought "why would anyone want one?" Finally, I succumbed, and now would not want to live without one. The iphone offers functions we may think we don't need or want. Give it time. In the end, nearly everyone will have an iphone or a competitor's version.
6-29-2007 @ 9:29PM
Dan Trillo said...
Bravo,
I catch enough hell over the regular telephone,
why should I double or triple the exposure!!!!!!!!!!!
6-29-2007 @ 11:27PM
Sam Achilli said...
This is a pure BS article!!!!! Are you for real? Perhaps you need help, very, very negative person whos life must be a bitter.
6-30-2007 @ 4:15AM
mongul said...
"That means investors are valuing the iPhone business in $34 billion."
No, people are buying the stock because of the iPhone, the iPod and the Mac. The Mac market share is increasing and growth prospects for the Mac are fairly promising.
6-30-2007 @ 9:18AM
John Oeffinger said...
No problem dude...there are plenty of others not following your advice. BTW, this was sent from my iPhone!
6-30-2007 @ 11:06AM
bob said...
hmmmm, lets see here--iphone costs starts at $500, and monthly fees are $60 and up. jesus, do i really need something new with time payments? i personally think the costs are more that the thing is worth.
i feel sorry for all of you that think it is, i don't think what you have can be cured. its called stupidity.
now, how long will it be before one of you dummies kills someone because you were keyboarding or playing with your new iphone in your car?
who will the 4 year olds parents sue, you, AT&T, or APPLE?
6-30-2007 @ 12:04PM
Berfy said...
hasn't anyone heard of an editorial? beating some guy up just for his views on your sacred gadget. now don't get me wrong if i was still with the shitty serviced att you bet your ass i would have picked one up yesterday. but really come on now people its his opinion he didn't ask you not to buy one he just said he isn't going to buy one
6-30-2007 @ 12:06PM
Veronica said...
Respondent 13,
Why don't you say what you really feel? Stomp your feet & let loose those angry words Little Mister. Like the naysayer who wrote this article, I can't understand why you feel compelled to waste your time writing about things you claim to "not really need."
With the release of the iPhone or ANY technological breakthrough as impactful as the iPhone, real progress has been made for technology. Further application of multi-touch screen technology such as that developed and used in the iPhone (and to be fair, also in Microsoft's giant touch-screen coffee table) could easily be adopted to improve auto safety, via vehicle control, monitoring and alert systems. Most importantly, medical electronics are sure to benefit from greatly enhanced levels of efficiency and accuracy through implementation this technology.
Whom should we sue for that?
Veronica T.
6-30-2007 @ 12:04PM
Berfy said...
hasn't anyone heard of an editorial? beating some guy up just for his views on your sacred gadget. now don't get me wrong if i was still with the shitty serviced att you bet your ass i would have picked one up yesterday. but really come on now people its his opinion he didn't ask you not to buy one he just said he isn't going to buy one
6-30-2007 @ 1:43PM
willie said...
with all these little phones that do everything i bet the eye doctors love it they work hard to fix eyes these companys mess up
6-30-2007 @ 6:55PM
clayj said...
I know, internet on the go, what a horrible concept. I said the same thing ten years ago about high speed internet and here are all these fools paying extra for speed and convenience when we know that dial-up is where it's at. And don't even get me started on those horseless carriages. Gotta go, the lamps are running low on kerosene...
6-30-2007 @ 9:21PM
Humhaus said...
Wow! Peter, I feel real sorry for your students and clients...Thanks to all of you who saw the BS for what it is and commented. I really loved the "Microsoft's giant touch-screen coffee table" comment.
When Society as a whole caters to the Lowest Common Denominator, we limit ourselves as a Society. The same people who had "problems" with their new phone, are the same ones who can't set their clock on their microwave at home.
7-01-2007 @ 11:13AM
a.j. said...
It's funny how fanboys and society in general rail against someone who speaks his mind. Calling him an idiot because he doesn't want a product. While I think the IPhone is sweet, you won't find me making fun of someone who thinks differently, and what is that? Because I'm a human being. Get off the ape train.