iPhone wins in a brand-conscious market--analyst
By Lawrence Casiraya
INQUIRER.net
First Posted 17:33:00 05/13/2008
MANILA, Philippines -- Both products tout almost similar features like WiFi, video playback and, finally, 3G compatibility. But in a brand-conscious market, the iPhone has wider market appeal, according to an industry analyst.
Following months of speculation, Globe Telecom made a scant announcement Monday that it has signed an agreement with Apple to become among the first operators in Asia to support the popular device.
Benedict Ferrer, senior analyst for XMG Asia Pacific, expects local consumers to welcome the "official" entry of the iPhone. Prior to the announcement, the iPhone is already available in the gray market albeit hacked in order to run mobile services from local operator networks.
However, many will be skeptical as to how a local service provider can fully utilize current applications in the iPhone that are unique from other fully featured mobile phones or smartphones, said Ferrrer.
"Until then, we can expect a waiting game among consumers before joining the iPhone frenzy," he said, replying to questions sent via email.
"A lot of similar technologies have been popping out challenging the iPhone but consumers are still driven by the hype and brand that iPhone provides as a lifestyle device," he said.
By this, he was referring to the Blackberry Bold, the new handset also announced Monday by Canada-based Research In Motion (RIM). Originally targeted at business users, the new Blackberry device is touted to rival the iPhone in terms of features.
But as Ferrer pointed out, high-end phone users cannot easily be dissuaded to switch handsets unless there is a compelling feature that improves on an existing product, in this case the iPhone.
The bottom line is, he said, the iPhone has the edge in market reach because it covers a wider variety of consumers, from business users to "high-end, techno savvy consumers"
He said: "The market is brand-conscious, symbolizing a lifestyle trend among consumers and a reflection of their personality. Thus iPhone's brand equity on this market is larger compared to Blackberry.”
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