The iPhone Rings Again

Ever since Steve Jobs made an off-handed comment years back in response to a question about bringing back the Apple Newton, saying "PDAs are dead. Cell phones are the way of the future," technophiles have been drooling over the idea of an Apple iPhone. Every few months some Photoshop Phreak comes out with a mocked-up speculative "photo" of the iPhone. And every year the rumors get stranger. Well, this time around we may have the topper, Apple as a cellular provider centered around its Apple Stores.

Because most phones are sold as loss-leaders to lock users into the provider's network, Apple can't compete on pricing unless they too are a provider. Thus, the hardware and the network must both come from Apple for Cupertino's new phones to have a shot at the kind of popularity enjoyed by the iPod platform.
In fact, Steve Jobs reportedly sees the cellular phone as a natural evolution of the iPod...The designs we've seen for the phones are 100% "flip phone" variety, with Bluetooth, camera and video capabilities, and large amounts of on-board storage. There will be two main types: those based around Flash memory, and those with on-board hard disks similar to those used in the iPod Mini.

This seems too strange to be true. Apple Computer has stayed on top by remaining focused on what makes it great - excellent industrial design and easy-to-use software. Cell phones hardly seem like part of their core competency. Then again, I remember saying something similar when I first heard rumors of the iPod - after all, what would Apple know about selling music?!