Here’s something I started writing when the iPad was announced:
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The iPad will hurt iPhone.
And not the same way that iPhone has hurt iPod sales.
The accessibility of this iPhone is part of what has made it such a success. It is instantly recognizable as the ultimate in portable electronics. It is what’s cool and what everyone wants.
One of the reasons the iPhone is thought of as unattainable and luxurious was the initial price point: $499 and $599.
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I’m not going to finish this thought, because I think this post sums it up nicely. The part that I had wrong was that the iPad would take the iPhone’s place as luxury brand. The iPad is actually going to be at the bottom of the list, it’s the most consumer product.
Because the mobile phone marketplace is so highly competitive, the iPhone is the place where the real experimentation is happening. Apple even gambled on the design of iPhone4, which spawned so much media blowback. Bad PR sure - but the sales are better than ever. So Apple is choosing to innovate in the most lucrative market.
Apple has proven with each release that the iPhone is growing in popularity - I don’t personally know anyone who has had an iPhone and chosen to give it up.
Apple makes the same money selling a 32GB iPhone as it does a 64GB WiFi iPad: $699