iPhone's hype to benefit all cellphone companies

MANILA, Philippines - Instead of being worried about the newest incarnation of the iPhone, mobile device manufacturers should look forward to its Asian launch since the product’s marketing hype will benefit the industry. An analyst of Ovum, a UK-based research company, said that mobile device manufacturers offering products with functions similar to the iPhone are expected to benefit from Apple’s marketing efforts. Steven Hartley, senior analyst of Ovum, calls this the “halo effect." “The ‘halo’ effect refers to the positive effects on other device vendors’ mobile data-focused devices that Apple’s hype will generate," said Hartley in an email correspondence. “The underlying principle here is that Apple is paying to market and publicize mobile internet access through a mobile phone and that fits in very neatly with the strategies of all the mobile device vendors." He said this same effect is expected with the launch of the new generation iPhone as he expects consumers look for iPhone-like devices that may be available in another network at a lower cost. “Admittedly Apple is not targeting the entire device market, so their share of the high segment will be more, but it is important to put Apple’s marketing presence in context with its size relative to Nokia, et al.," he said. Apple, Inc. announced this week that a 3G version of the iPhone is due out this July in 22 countries. The product will soon reach 70 countries, including the Philippines, by yearend. The cost of the unit and rates remain unclear as Globe Telecom, Inc., the mobile operator granted the right to offer the iPhone in the Philippines, refused to give further details beyond the announcement date. In a separate interview, Ovum Australia research analyst Nathan Burley noted the proliferation of other iPhone-like devices as the market awaits the iPhone in the Asia Pacific region, including the 3G version. Some of these include the Nokia N95, the HTC touch screen models and the recently announced Samsung Omnia or SGH-i900 model. But he noted that some of these models may not have the same brand strength as Apple or the iPhone. This strength will ensure a significant proportion of the high-end market will buy the iPhone, he added. He said that phones nowadays are used for more than talking or texting. “People carry phones for all sorts of reasons, that is, to show off to friends, to look cool, to show status, etc.," he explained. In a separate email interview, Nokia Philippines said it is unperturbed by the entry of the iPhone because of its lead in the global market. “Nokia takes Apple seriously, like we do any other competitor in the market. Being number 1 is a not an easy position to be in because many are after you but that’s what makes it exciting and keeps us on our toes. We’re also pleased that Apple has considered the Nokia N95—launched in 2006—to be the benchmark for their iPhone development," William Hamilton-Whyte, General Manager, Nokia Philippines said. Nokia claims to be the biggest phone manufacturer with 115 million mobile devices sold worldwide in the first three months of this year. - GMANews.TV