iPhone fails to slay competition; RIM, Palm smartphones selling like hotcakes

April 21, 2008

It would seem as though consumers are drifting further and further away from fun nifty handhelds touting simplicity coupled with rather useless features such as low resolution cameras or “music players” in favor of full-featured smartphones that do everything but dry your laundry. Though the iPhone is the most popular cellular toy of the moment, the other competitors aren’t down and out; Blackberrys and Treos are being reported sold out at many retail locations.

Researchers at Morgan Keegan are reporting that RIM and Palm’s most popular devices, the Blackberry Pearl and Palm Treo 755 respectively, are out of stock with major cellular providers AT&T and Sprint, according to ZDNet.

The iPhone is also in short supply, but isn’t delivering the whipping to the other smartphone providers that some anticipated.

That may imply a few things about the nature of the cellular industry’s direction right now. First, one might assume that perhaps the iPhone isn’t striking consumers as the only real smartphone on the market. Maybe the glamour and flash of Apple’s marketing scheme hasn’t had quite the intended effect, and consumers are happy to get their hands on inexpensive handsets just as much as iPhones.

Hopefully consumer’s invigorated interests in smartphones will be reflected in lower price points across the board. If consumers start buying Treos and Pearls more, Apple might be forced to start lowering the price of the iPhone. Let the games begin!

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One Response to “iPhone fails to slay competition; RIM, Palm smartphones selling like hotcakes”

  1. Steve:

    The iPhone is without a doubt a GREAT phone, the problem is the exclusive agreement it holds with the mediocre AT&T wireless service. AT&T has used the exclusive agreement to overcharge customers for service, not offer corporate discounts, not offer insurance, etc. If the iPhone was available on another network you’d see some competitive pricing that might allow more consumer appeal.

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