As the launch of the 3G iPhone approaches, BusinessWeek reports that competitors face the same problem they did in July of last year.
"Most people want the iPhone, just as they want the iPod and not some other MP3 player," says Gloria Barczak, professor of marketing at Northeastern University. "People want the real thing."
The difference between now and then is that the real thing will cost less, at least up front. Higher costs for data plans and messaging actually means the 3G iPhone costs more over the life of the contract with AT&T. Nonetheless, that new sticker price is putting pressure on rival carriers "to increase their own mobile handset subsidies, boost marketing budgets, and reduce prices on some services, analysts and industry insiders say—all likely to mean slimmer margins."
Unfortunately, none of those business strategies are about the product and the user experience, which leaves it up to the handset makers to challenge the iPhone.
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