Apple's second generation iPhone was released for sale last Friday, and promptly broke every consumer electronics record. Apple and AT&T sold an astounding one million phones in just three days, making it not only the most popular cellphone in history but the most popular consumer electronics device ever. Even more incredible, there are still long lines of buyers waiting for phones--according to numerous reports, all 1800 AT&T stores are completely sold out, and most Apple retail stores are out of stock.
What accounts for the phone's popularity? It is not the hardware; the phone has some incremental improvements over the previous model, but nothing groundbreaking. A combination of lower price and an open platform seems to be the appeal. As the iPhone was released, Apple also rolled out thousands of free and low cost applications and programs for the iPhone, making the phone not just a phone/PDA but a true platform that can be customized by the user. This is the key difference now between the iPhone and most other cellphones. The Palm Treo and the RIM Blackberry have had this ability, but both devices have been relatively expensive. More importantly, both the Treo and Blackberry have small, cramped screens and low quality interfaces. The large, very high resolution iPhone display is startlingly clear and easy to use compared to any other portable device.
Samsung and LG have rolled out new phones that look a lot like the iPhone, and cellular providers like Verizon are advertising them heavily. But you can only have what the cellphone provider will let you have on those phones, and many of the add-ons come with steep per month subscription fees. The iPhone App store offers hundreds of free programs, and hundreds more programs that average about $5 in cost. Over time, the other cellphone providers will have to move to this model, or everyone will end up as an AT&T customer and an iPhone user.