Now if Apple is trying to market a phone, they’re going to stick to their guns and their current market plan, which is making a really great product that is innovative and cutting edge. That however means hefty prices. Heck it’d even look good with neat colors, slim shape, and simple styling. But again, this means EXPENSIVE PHONES.

Looking at the market right now, every wireless provider offers a huge variety of phones, from the free to the 50 dollar affordable to the occasional paycheck busting-right-out-of-Japan/Korea phone which costs a whopping 350 dollars. Apple could definitely stand to benefit by hitting this market, but then what? Their phone could not be any cheaper or else Apple would be losing money in making their phones.

All in all, 2.5 mm headphone jacks do suck, but buy a 2.5mm adapter. Low memory does suck, but I managed to pick up a 1gb microSD card for 25 bucks, you can too. If you really want to make your phone a music playing phone, it is possible, you just have to prove to Samsung and Motorola that you really want to listen to music. And right now, 99.9% of the market is willing to carry around an extra item like an iPod to do that rather than buy an expensive phone which will last only a two or three years.

Here is my philosophy, almost all iPod owners would gladly purchase another. Its a lot of money to throw down, but at the end of the day it is worth it because it just works. Those people will be loyal to a new iPod product.

PLUS, a lot of people are getting sick of the 2-year contract. Its a model that only works because the consumer gets a “free” phone. But consumers are getting wise to this. I am at the place, now, and I suspect many consumers are already there, where I would gladly pay up front for a great piece of technology and be free from the 2-year ball-and-chain.

Which is to say, I think people will pay the $XXX for the iPod / phone. They can justify it by the iPod functionality alone. The phone is almost a bonus, a freeing bonus.

Lp

I guess I’m in the minority when I want my components to have a little bit of heft (little bit, not fatty). RAZR thin is nice but not necessary. I’m waiting for the N95 myself..drool.

If anything, it is the network that is a biggest deal. With the faster 3G speeds rolling out people can take advantage of media options much more fluidly – if the speeds and network isn’t available then no matter how good the apple phone is i dont see it doing too well.