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Calling All Competition
Sprint's David Owens, holding his company's UpStage and Fusic phones, says he "struggles with the idea" that people will pay up $499 to $599 for an iPhone.
(By Gerald Martineau -- The Washington Post)
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Phones that double as music players, cameras and Web browsers have been on the market for more than two years, including Verizon Wireless's Chocolate phone and T-Mobile's Sidekick. But the iPhone's simple design, coupled with the user-friendly reputation of Apple's brand, is the biggest draw, McGuire said.
"Somehow, a halo has formed over Apple," he said. "A lot of handset manufacturers are gritting their teeth that Apple is poised to take credit for bringing Internet to the cellphone."
All the anticipation could also amplify any potential glitches with the new phone.
Thornton said business users may find the touchscreen awkward for quickly tapping out e-mails. But his main concern is whether Apple, as a newcomer to the phone business, has made a device that functions well as a phone.
"The phone takes a backseat to all the other features Apple has crammed into it," he said. "Technologically, can it deliver?"
In the Washington area, adoption of the iPhone may be hindered by the fact that AT&T does not provide service in underground portions of Metro. Only Verizon Wireless and Sprint, which roams on Verizon Wireless's network, receive underground signals. AT&T's high-speed network is also slower than the network used by other carriers.
In preparation of the iPhone's launch Friday night, AT&T is adding capacity in areas that get weaker signals, spokesman Mark Siegel said.
By going head-to-head against a digital music phone, Sprint is trying to gain ground in mobile entertainment services. Last month, the company announced a partnership with Pandora, the online radio site, to stream songs directly to phones. It also signed a deal with the Disney-ABC Television Group, allowing customers to download movies and TV shows. Song downloads from its 1.6-million track music library helped boost data revenue by 44 percent in the first quarter.
But where Apple's marketing of the iPhone has succeeded, some say Sprint's efforts with the UpStage have faltered.
"With the UpStage, Sprint is clearly taking aim at the iPhone, and it's not even close to being an iPhone competitor," said Avi Greengart, an analyst at Current Analysis, a Sterlingmarket research firm. Its ease of use doesn't match its sleek design, he said.
The iPhone is just one indication that AT&T has made more of its merger with Cingular than Sprint has of its merger with Nextel, he said. "Now AT&T has the iPhone. And what does Sprint have? I'm not sure, and I think that's a problem."
