Thursday, June 24, 2010

In the competitive smartphone market, iPhone 4 set to have biggest launch day

When the latest iPhone goes on sale in retail stores Thursday, many diehard fans won't care: They got theirs in the mail Wednesday.

Others -- including those shut out last week when orders overwhelmed websites for iPhone manufacturer Apple's website -- are expected to stand in lines at Apple stores begining at 7 a.m. to snag the much-hyped iPhone 4 smartphone, priced from $199.

Best Buy and Radio Shack stores also will deliver phones to customers who preordered -- though they won't have enough for walk-in customers. And South Florida Wal-Mart stores said they received few or no phones, even though it was publicized they would be selling them for Thursday's launch.

AT&T stores will hand out pre-ordered iPhones Thursday but won't make other sales until Tuesday.

Christian Ortiz of Davie was among the many fans frantically tracking his FedEx iPhone 4 delivery on Wednesday -- one of many who managed to slow down the FedEx site.

``It just looks fantastic. I'm just so psyched about it. My wife thinks I'm nuts,'' said Ortiz. ``It's a big thing just knowing you're getting it a day before. I know it doesn't matter. You just get caught up a little in the excitement.''

ANTICIPATION

Ortiz went to work, but had his sister stay at his home and text him as soon as the iPhone 4 was delivered Wednesday afternoon.

The launch of a new iPhone -- a summer staple since 2007 -- comes a week after preorders crashed websites for Apple and AT&T, the exclusive carrier. AT&T called it the busiest online sales day in its history.

Those record-setting sales came just a day after Verizon had announced its impressive new Android phone, the Motorola Droid X, due out July 15. And less than a month before, Verizon had started selling a highly praised top-of-the-line Android phone, the HTC Droid Incredible.

Meanwhile, Sprint customers are having a hard time getting hands on the HTC Evo 4G, another Android phone that arrived June 4 and continues to sell out at stores.

The last iPhone 3GS model is only a year old, yet analysts expect 2 to 3 million iPhone 4 units this weekend, far outstripping the launch weekend of its previous phone, which sold about 1 million units.

As smartphones have become both status symbol and lifeline, the lust is strong to have the best, according to cultural anthropologist Genevieve Bell, who is the director of the user experience group at Intel.

``They have become desirable objects and desirable in that way where we become compelled to have them,'' Bell said. ``It's your reptilian brain kind of kicking into action. You get this overwhelming sense of `I must have it,' and it's not necessarily rational.''

Those who wait in line Thursday are not much different from those who stood in line when Air Jordans came out, or those who got up early to be the first to own a popular CD album, she said.

Andrew Eisner, a director at electronics publication review and research website Retrevo.com, compares the rush and stress over getting the best smartphone to how computers were bought in the 90s.

``Back in the good ol' days of the computer magazine, people struggled over which computer to buy and there were new computers to buy every few weeks,'' Eisner said. But now, the brand and speed doesn't matter as much in deciding on a home computer -- and the same can happen as smartphones flood the market and become more commonplace.

``Eventually things will settle down,'' Eisner said. ``But I don't think it's going to happen anytime soon.''

The sales barrage of eye-opening phones over the past several months has tech analysts speculating: Will Americans soon develop cold feet about committing for two years if their phone will be outdated in a month?

``If you're an early adopter, it's a very frustrating time,'' said Mike Gikas, senior editor of electronics at Consumer Reports. ``The product cycle seems to have sped up. That may have an effect with people being happy with their phone for two years.''

INCENTIVES

Radio Shack is drawing customers by offering to buy back old iPhone 3G or 3GS models for $100 and $200, respectively, when upgrading to the iPhone 4.

AT&T is also pulling in more orders by offering iPhone upgrade discounts to more customers before their two-year contracts expire.

That unique renewal discount is a sign to some experts interviewed that consumers may be seeing variations in how contracts subsidize phones. Other countries, like Canada, often sell one-year contracts, or sell the plan and phone separately without a subsidy, to avoid the locked-in feeling.

``At the end of the day, if you find a phone you're comfortable with, you have to buy it an put on blinders for the next two years and enjoy it,'' Rick Munarriz, senior analyst at investment website The Motley Fool. ``I bought the 3GS back in December. I'm not going to be jealous, I'll get it next year.''

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