Wednesday, March 07, 2012

Segmenting the iPhone opportunity | @asymco - 3G is the real constraint for #iPhone penetration

One of the most important constraints on the purchase of iPhones is the state of 3G (or, more broadly, mobile broadband) networks. An iPhone is a mobile computer whose primary value is derived from high bandwidth data communication. Because this bandwidth is not universally available, the iPhone faces a restricted addressable market.

This is a different kind of argument.
Essentially, Horace is saying that the lack of 3G is what's restricting iPhone from larger market shares in China. He assumes that carrier partners can always sign on later. What is not mentioned in this article is whether much of this addressable market in China has the income to buy an iPhone. This exclusion seems to imply that he doesn't think that it matters as much as most other analyst thinks.

Posted via email from Sammy's posterous

No comments: