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Like other iPhone users, I used WiFI networks whenever available (which is often) but I use EDGE at other times and it works better than I expected it to. I'm amazed at how well it works with Google Maps, and I use that feature a lot more often than I thought I would. http://www.blackfriarsinc.com/blog/2007/10/why-edge-versus-3g-less-than-you-think

It saves you an extra $1100 or so, paid up-front, on top of the existing cost of the phone. In Germany, officially unlocked phones were on sale at 999 euros (or ~$1500). This is down to Apple losing any monthly fees from its partner phone-network once a phone is unlocked from that network.

So, with Apple wanting to recoup 4 years (according to the Steve) of R&D, here's your choices:

      - Pay $399 for a phone locked to AT&T.
      - Pay $1500 for an unlocked phone

Apple's position presumably is that no-one in their right mind would pay $1500 for the same phone that costs $399; and that the additional overheads of supporting any network, not to mention explaining to consumers that the 'visual voicemail' and possibly other future features wouldn't work, just made option 2 a non-starter.

It's up to Apple to figure out how much profit they want to make on each device (that's the right of the manufacturer). It's up to the consumer to decide whether the value is worth the cost. If the value-proposition is high enough, people will purchase the device in droves (and it looks like this is happening).

Simon

It's not stupid at all. Apple make a huge impact every time they release something major - far and away more than any of their rivals. There's a direct relationship between the secrecy of the company and the buzz for a release, which translates into a *lot* of cash in sales. One of the reasons the iPhone was themost successful consumer product launch in history is the control over information that Apple exerts.

When the benefits are measured in billions of dollars, it makes perfect sense to implement the policy that Apple does. Sure it's an easy shot to blame it on Steve's ego, but it looks like a cold blooded business decision to me.

Simon

I'm the author of the original article on Blackfriars Marketing, and the title of this thread is misrepresenting that article. The original title is "Why EDGE versus 3G matters less than you think.", not why EDGE is getter than 3G. I've posted a followup to the article today here. It's not nearly as inflammatory as implied here.

I don't know but I looked up the author's (Carl Howe) writings on that site http://blackfriarsinc.com/blog/index.html and just about all the entries are positive comments about Apple and iPhone

Wow, what an original an innovative idea! It's too bad that Google didn't think of this. Or I'd really expect that Sun would have come up with something like this by now. But it took those geniuses from Redmond to deliver true innovation!

People buy iPods because they can use it at the hottest online music store.

Ah, the continuing saga of pundits who should not be allowed to work with numbers and write, and the bloggers who don't read that which was poorly written.

1) The folks at Forrester who conducted the original piece need a refresher course in statistically valid samples. Looking at 2,000 credit card accounts when reviewing a $1B in sales doesn't cut it.
2) If it took you 3 years to reach sales of 1 Billion (yes, Billion with a "B") units, and in the past year you sold ANOTHER Billion units that's NOT a decrease. [Check the sales graph. Units on the vertical are in Millions.]
3) There is a big difference in rate of sales and rate of sales growth. The rate of growth may be down slightly, but the rate of sales is still HUGE (see: 1 Billion in tunes alone this year)

For more info, check this article on Blackfriars.

Ah, the continuing saga of pundits who should not be allowed to work with numbers and write, and the bloggers who don't read that which was poorly written.

1) The folks at Forrester who conducted the original piece need a refresher course in statistically valid samples. Looking at 2,000 credit card accounts when reviewing a $1B in sales doesn't cut it.
2) If it took you 3 years to reach sales of 1 Billion (yes, Billion with a "B") units, and in the past year you sold ANOTHER Billion units that's NOT a decrease. [Check the sales graph. Units on the vertical are in Millions.]
3) There is a big difference in rate of sales and rate of sales growth. The rate of growth may be down slightly, but the rate of sales is still HUGE (see: 1 Billion in tunes alone this year)

For more info, check this article on Blackfriars.