When Apple launched the iPod it was derided for being too expensive (imagine paying $399 for a 5GB MP3 player now), and many people couldn’t understand why Apple were entering such a low-margin business.  Will the analysts be wrong about the iPhone as well, given Apple’s ability to turn a seemingly weak product into a winner?

My key criticisms of the iPhone are the same as were levelled at the iPod when it was launched - too expensive, poor battery life and tough price and feature competition.  But, I’m certain that the launch of the iPhone has still got the attention of the big guns of the multi-billion dollar handset industry.

Apple couldn’t have chosen a tougher market to join as a new entrant in my view.  For instance, Motorola has recently had to lay off worker been forced into job cuts, and Samsung is losing market share by the month. 

However, new entrants can make it in this market.  Sony Ericsson are still a relatively new player, and it continues to grow market share every quarter despite the recent resurgence of Nokia.  If the iPhone is to be successful Apple need to replicate the feats of Sony Ericsson and take market share away from the less innovative manufacturers like Motorola, Samsung and all the other smaller players.  I don’t think Apple will be able to take market share away from Nokia, as Nokia’s key handsets are targetted at a different market segment in my view.

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