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iPhone 2.0 Takes on the World

Apple could launch its new iPhone in 64 more countries by yearend, deepening the electronics giant's reach in international markets
As Apple announced to unveil the next version of its iPhone, the fans are expecting a lot of progress from the earlier version. But the main focus to this event is, actually how well iPhone will do in the international market. The new version of the iPhone will do more than perhaps any other device in history to fuel Apple’s ability to reach international markets.

Bigger Seller than BlackBerry?
Until now Apple has only launched the iPhone in six countries, but they recently agreed to release to more than 70 countries by the end of the year with wireless carriers. Until Apple decided to go for the international market its sales were way below compared to the sales of Blackberry. However if Apply is able to accomplish the goals it has announced, it will able to lead the so-called smartphone market.

Ready market Worldwide
Though the little recognition outside of U.S. is a big obstacle that Apple has to overcome, there are some optimistic points. Unlocked iPhones have been spotted in nearly every country in the world. Although the definite number is hard to come by, Apple estimates that gray market dealers in China may have sold as many as half a million iPhones there. This could make Apple to permeate the international market more easily.

More Flexibility with Carriers
There are more reason for Apple being so confident in infiltrating the world market. The company has shown itself willing to break with established practice of signing up only one wireless carrier per country, as it did in the U.S, Britain, France and Germany.

China Toehold
To Apple, China is the ‘Big Kahuna’ according to Needhan & Co analyst Charles Wolf. This is because China Mobile which is the largest mobile company in China has more than 400 million subscriber which is also the world’s largest. But the things between this giant mobile company and Apple didn’t go well. Talk between these two companies collapsed in January over Apple’s share of service revenue. Once Apple gets a toehold in China, there will be no stopping the iPhone engine. Therefore the experts are advising for Apple to first satisfy the demand of China Mobile to get into the market.

Opinion
Once the company establishes a star product and the star product is successful enough to have a cash flow, the company starts to expand. In this case the iPhone in U.S. did pretty well and made Apple to turn its attention to the international world. But when a company is expands to the international market, it always faces communication gap. Back to the case, though iPhone is highly recognize inside U.S. and neighboring countries, there are only small perceptions about iPhone in other countries. To overcome this gap I think Apple needs to promote using there former product brand such as i-pod and Mac computer. Compared to iphone, the two products is widely known because they already done a lot of promotion.

AnnotationArik Hesseldahl and Jennifer L. Schenker, iPhone 2.0 takes on the world, BusinessWeek, June 6, 2008http://www.businessweek.com/technology/content/jun2008/tc2008065_290813.htm