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June 18, 2008
With the success of the first generation of the iPhone and the imminent release of the version 2 3G iPhone, other cell phone makers, and providers are scrambling to create the copy that can defeat the original. Personally, the only one that I think even has a chance is the Instinct from Sprint.
I don’t really think that this phone is any more capable of defeating the original, but I think Sprint is properly motivated to try. Sprint has been suffering steep losses in the market, and has said that they will be spending 100 million dollars to promote and market this phone. That is three times the amount spent on any other phone marketing campaign in Sprint history.
Add to that, Sprint will be selling this phone for the low cost of $130, with a two year contract through Sprint. The $130 dollars includes a $100 rebate from Sprint, so your actual out of pocket expense is $230.
Aside from making this cheaper then the iPhone, Sprint will also be releasing this phone 21 days earlier then the iPhone. June 20th will mark the day you can get the instinct, whereas the iPhone buyers will have to wait until July 11.
Still, the question remains. Can the Instinct prove itself as the “iPhone Killer”? The answer is no, for three simple reasons.
1. Sprint is the #3 provider in the US, and they are known for having sketchy service in large portions of the US, so regardless of how good your phone is, if you can count on the service, there is no point. Sprint also has clear problems with their customer service, and in my own experience have seen many people suffer from straight out fraud from Sprint billing department.
2. Regardless of how much money Sprint spends on advertising this phone, they will not even come close to the marketing thrust, and media coverage, that Apple is getting.
3. In the end, people want the real thing. How many different mp3 players came after the iPod that were supposed to be better, cheaper and ultimately kill the iPod ? How many were successful ? None. The only market this will take from Apple are current Sprint customers who are still under contract, and want an iPhone experience without having to do early termination with Sprint. Anyone who has the ability to switch to at&t for the iPhone will be doing so.
Will there eventually be an “iPhone Killer”? Perhaps, and I think the only people that have the capability of killing the iPhone is at&t, since they are in fact the only negative to the iPhone.
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