SMS is massive in the UK. But I suspect the group targeted by the iPhone will appreciate the qwerty keyboard an other stuff enough to deal with the lack of a physical keyboard.

I could be wrong though.

It’s a phone: It’s extremely expensive. It’s larger than most, and it has too many extras you don’t want if you just want a phone. On the other hand, it’s got a great interface in a world of barely functional UIs. You may come to enjoy the extras, but will hate paying for them up front when you just need a decent phone.

It’s an iPod: It’s wonderful. It is the top of the line iPod, with a great screen, Wi-Fi and bluetooth (why you need wi-fi and bluetooth on a music player is beyond me. But people always complain about not having wireless sync, and I think Jobs justacts” of the existing iPods.

It’s a PDA/Internet device: It’s also exceptional. A better screen than most (all?) PDA’s out there, a better interface, better software (Versamail, Blazer on a Palm? Bleh).

There’s also the huge benefit of not having to re-purchase music for a new device. No need to pay $1.99 for music for your phone that you already have on a CD or got for $0.99 for the ipod. I’ll be glad to get off the verizon model of customer service (charge them for everything, disable and block alternative methods).

But it also appears to actually address the convergance market that Treo, Blackberry, etc. all fail to do. You get everything you need, without the need for a seperate phone, ipod, and PDA.

The iPhone will sell. It doesn’t suffer the same problem as the original iPod… everyone already knows iPods are what the cool kids have.

The smaller market will be the people who are looking to consolidate again (after getting rid of their convergence devices that failed to do anything well)… and these will by as funds and existing phone contracts expire, as long as Apple continues to show that this device really does do everything their other 2-3 devices do, better.

After that, comes the rest of the iPhone family… maybe? How do you make a cheaper version of the iPhone? I’m guessing you just keep making it better, and drop the price of the older ones, rather than dumbing down features that are just software running on OS X anyway. Hopefully, all they’ll do for the next models at the current price points is increase battery and storage.

Sadly, my contract is up in April, so I’ll be conviently able to get an iPhone in June, and able to grumble about getting a v1.0 product when the second gen iPhone comes out in the fall, with twice as much for the same price!

What people forget is that it is a full-fleged, and Apple’s best, iPod!

With the iPhone, I won’t have to purchase an iPod Nano. It is a video iPod with a phone attached.

It appeals to those who carry both an iPod and Cell Phone – which include the large majority of teenagers and a lot of adults.

One can simply take the iPhone when going to the gym – rather than both an iPod and a cell phone. It simplifies life.

I want 4.