To my point in my previous post:
But it’s not an iPod. It’s a $500 or $600 communicator that requires a two-year calling commitment. Monthly charges haven’t been announced, but judging by comparable offerings from AT&T and other carriers, it should run you at least $50 per month in voice service and $40 per month in data service. That adds more than $2,000 to the iPhone’s price tag over two years even before buying music or movies!
Consider also that Apple engineers already are hard at work on iPhone 2.0.
Modern cell networks use third-generation (3G) standards that are five to 20 times faster than that in the iPhone. Jobs said the chips to make a 3G iPhone weren’t available when they designed the iPhone; but they are now, and are in some competitors’ less-featured but faster phones.
Further to my point, The Wall Street Journal in what is otherwise a sterling review says this:
But the iPhone has a major drawback: the cellphone network it uses. It only works with AT&T (formerly Cingular), won’t come in models that use Verizon or Sprint and can’t use the digital cards (called SIM cards) that would allow it to run on T-Mobile’s network. So, the phone can be a poor choice unless you are in areas where AT&T’s coverage is good. It does work overseas, but only via an AT&T roaming plan.
In addition, even when you have great AT&T coverage, the iPhone can’t run on AT&T’s fastest cellular data network. Instead, it uses a pokey network called EDGE, which is far slower than the fastest networks from Verizon or Sprint that power many other smart phones. And the initial iPhone model cannot be upgraded to use the faster networks.
Interestingly enough Apple stock was down today $2.69 (2.20%).