Technical specs aside. There are plenty of reasons why the iPhone isn’t the do-all, be-all phone. But I think we can still agree that it is a pretty good phone. It does not have any major technical flaws. I think there are six major reasons why the iPhone will succeed, despite the high price, lack of an SDK for third party apps, and AT&T exclusivity.
Branding - The iPhone is made by Apple. Apple has very strong and positive brand recognition. 1997 at the Macworld in Boston, Steve said he believed Apple was one of the top five recognizable brands along with Nike, Coca-Cola, and Disney.
Advertising - Apple’s advertisements are iconic. Most everyone is still familiar with the famous 1984 commercial that played only once during the Super Bowl. It was even remade into a pro-Obama and anti-Clinton video that was put on YouTube by an individual unaffiliated with the Obama campaign. The silhouette iPod advertising have been parodied everywhere, even by Family Guy. And the “I’m a PC, and I’m a Mac” commercials have even seen parodies by Novell. The iPhone commercials make it seem like getting an iPhone is just the obvious thing to do.
Established Fan-Base - “Mac zealots” as they’re often called will support the iPhone and be early adopters. How often do you see people camping outside an AT&T Wireless store? That’s a rhetorical question, but the answer is likely: Just once. And that once was for the iPhone.
Aggressive Retail - Steve Jobs often notes the strong growth of the Apple Retail stores. Figures aside, I personally have been to Apple Stores from San Francisco to New York to Europe and they are always packed. iPhone will be at the forefront of every Apple Store and a strong highlight at every AT&T Wireless store.
Strong Partnerships - When Steve Jobs returned to Apple, he noted in his keynote presentation at Macworld that in order for the company to survive, they must forge meaningful partnerships. Apple isn’t going at this alone. Other major companies have a stake in the success of iPhone. The obvious one is AT&T. If AT&T has five years of exclusivity with iPhone and if the iPhone grows at the same rate as the iPod, AT&T will be cashing in big time. Google has a very close relationship with Apple. Steve Jobs even stated recently that it seems the only two companies that seem to be innovating are Google and Apple. Google has its map service and YouTube video service on iPhone. Google has been trying to increase their presence on mobile devices. The success of the iPhone could be a great help for Google in expanding in that market.
Integration - Unlike Nokia or Motorola, Apple is in a position to leverage the other markets they inhabit and to tightly integrate the iPhone to work with those products. Macintosh, TV, ITMS, iPod, etc. If Moto wants music services available on their phones, they partner with someone. (In the case of the ROKR, they happened to partner with Apple.) If Apple wants a music service available on the iPhone, the iPhone developers just pick up their iPhone and give the ITMS developers a call.