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iPhone 3G poised to make a splash in mature WCDMA markets

Upgraded device to follow 'twice as fast, half the price' strategy

A portfolio of high-profile devices, such as Apple’s iPhone 3G, provides lucrative selling and investment power for operators. In markets where HSPA networks are well established and coverage is good, iPhone 3G will strengthen operators’ portfolios and help drive sales of HSPA handsets as omnipresent HSPA coverage becomes a reality. For up-and-coming HSPA markets, devices like the iPhone 3G will trigger the wider adoption of HSPA, which will, in turn, encourage further investment in next generation mobile networks.

Instead of building another premium-priced handset, Apple has simply upgraded the existing model with the two most requested features and halved the price to earn, what they hope, will be retainable market share, winning customers over with ease-of-use and killer applications provided by third-party developers. Having adopted the more traditional model of subsidy-based sales, Apple is attempting to transform the iPhone into a mass-volume device over the coming years. It’s now up to the operators to ensure they aren’t pricing potential customers out of the equation with exorbitant data rates and unnecessary usage caps.

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