The day after the iPhone was announced I wrote this:
The other phone makers are going to have to step up their game in the US. If they want to compete with Cingular and the iPhone, they are going to have to bring their best phones to the US as fast as they can. Sprint and Verizon have had a horrible selection of phones over the years. They often cripple the features on the phones to force users to only use them the way the provider wants. The iPhone will help to change all of that. Just like Apple laptops have forced the computer industry to compete with sleeker and slicker laptops, the cellular handset makers are going to have to do the same. Just like OSX has forced Microsoft to take a long hard look at the aesthetics and usability in Windows, the cellular software industry (and providers who cripple the software) are going to have to do the same.
I still stand by that, though we have not seen those changes yet. Verizon just recently disabled the integrated GPS in the Blackberry 8830 for no reason other than that it competes with a pay service they already offer. It may take losing some customers today for Verizon and Sprint to wake up. (Sprint has been getting much better lately, their 8830 will have GPS for free).
Every person who waits in line for an iPhone today sends a very clear message to the cellular industry. Everyone who opts to pay early-termination penalties to switch to an iPhone shows not only that they desperately want something more, but that they are willing to pay for it. The more successful the iPhone is over the next month or two, the bigger an impact it will have on the overall cellular industry.
Note: While I think it is great that the iPhone will work as a change agent in the industry, Anil Dash provided a little perspective via twitter. An iPhone and a year of service will cost as much as the annual income of a family of 4 in his father’s village in India.
