Friday, April 10, 2009

Stratocaster · iPhone Upheaval

Rich Sands has a very nice analysis of the mobile market and the impact of the iPhone - particularly on the carriers.
Consumers love it. Developers, and content creators love it. Apple surely loves it. But carriers are rightly spooked, because this new model cuts them out of the content business and accelerates their inevitable slide into the abyss of commoditized, dumb data pipes, where price and low cost are the only things that matter, and margins get razor thin. But the carriers should have seen this coming. No matter how much control carriers exert, if what they deliver is more about their profits than satisfying end-users, they’ll eventually be attacked by someone who understands that consumers have the ultimate power, and that developers and other content creators are the source of most of the value to those consumers. The iPhone was inevitable.

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