AT&T and Apple hope the introduction of the new iPhone on June 29th will cause the next retail frenzy. The device, which uses a touch-sensitive screen rather than a keypad, has been hotly anticipated with more than 1 million people signing up with AT&T to receive notice when the device is available.
Using the same hype techniques that toy manufacturers use for the launch of new gadgets and games like the Tickle-Me-Elmo doll, we will certainly hear about people camped out in lines for days and the ridiculous and inevitable stampedes of customers rushing to order the $500 - $600 unit.
To wit, AT&T has announced that only a restricted number of units will be available for the initial launch of the combination media player, wireless Web device that also acts like a cell phone by the way. An AT&T spokesman promised that the limited availability will only be for the initial launch. Later, it will be sold on AT&T's Web site and through other outlets.
Analysts are projecting that the launch will be highly successful with more than 3 million units and related service contracts being sold over the next three months. These numbers translate to more than $1.4 Billion of new revenues as a result of the exclusive iPhone deal at AT&T.
When will the madness end? Maybe as iPhone inventory increases, the price decreases, and we hear about product safety recalls, people will find out that a phone that lets you answer emails and watch your favorite rock video makes about as much sense as a doll that rolls over on its side when you tickle it! Of course the new iPhone is cool; it looks great and will make many people feel much better about themselves because they own one. The real question is what drives people to want the next newest craze and pay the premium price for something that they really didn’t know they needed in the first place? Just good marketing I guess!
By the way, would you mind holding my place in line? I've got to take this call.