iPhone has been positioned as a cellular phone that also provides an Internet access and stores and plays music and videos. However, the irony is iPhone is bigger than the usual smart phones available in the market but is designed for mobile Internet for which it is not principally positioned.

Steve introduced an excellent piece of technology, which even his strongest critic will marvel. iPhone has created a furore around the world and sent companies like Nokia, Motorola, Samsung and Sony Ericsson back to their drawing boards.

The next twelve months are going to be the most exciting for all the three - Apple, Cingular and iPhone users. Cingular will experience an unprecedented sale of iPhones, significant increase in the registration of new subscribers and also corresponding increase in network traffic – establishing its firm dominance in the American market. These twelve months will also be equally rewarding for both Apple and iPhone users who will have a new gadget to play with and enjoy a fresh customer experience, which will indeed keep them busy for sometimes, before they start asking questions.

iPhone has been positioned as a cellular phone that also provides an Internet access and stores and plays music and videos. However, the irony is iPhone is bigger than the usual smart phones available in the market but is designed for mobile Internet for which it is not principally positioned. iPhone is also significantly bigger than iPod Nano and iPod shuffle and is comparable to the size of iPod video. Perfectly rational questions are, why would I use iPhone for calling people, when I can buy a very sleek Nokia at a much cheaper price than it, and why should I use iPhone for listening to music, when iPods do a great job. As a listener of music “on the go”, why should I carry the extra baggage of voice and mobile Internet.

Music that established iPod and iTunes as the market forces is a secondary application on iPhone. Like other secondary applications, it will struggle for the want of usage. Strong Apple and iTunes branding will come to the rescue of iPhone but will not be able to pop up its usage for very long.

Mobile Internet is again a secondary application that will also initially struggle for the want of usage in spite of the excellent customer experience that iPhone offers but will evolve as a different mobile paradigm - on the go (vertical) applications that synergize with the new technology and size and will be winners, a new iPhone will be born, which will in fact be iLove - an individual will use it principally for an application that lends it the most value. I am a firm believer of the fact that great technologies don't go waste and do find applications after a struggle that drive them to success.

However, my concern is that any push by Apple to migrate iPod users on to iPhone can spell latter’s doom. iPod users will certainly not use iPhone to listen to music. iPod video experience has been not too exciting either for Apple. The users who invested on it are now primarily using it to store and listen to music.

To sum up, I had expected a more focussed solution and not a confused mass of protoplasm to come from Steve. I guess, he wanted to take a plunge into the booming cellular phone market and on the way hotch potched his creative genius. It also makes me wonder if iPod was an accidental success. Time will tell, what I have often said that application convergence is a value dilution syndrome.