by Alex Wilkinson

Created on: April 17, 2009

Moore's Law is a belief, long accepted to be fact by the tech industry, that says the amount of transistors on a standard processor will double every 2 years, effectively doubling speed. Moore's law was put forth in the mid 60s by a man named Gordon Moore, who founded Intel. What this means for the consumer, or those in the tech industry, is that anything currently considered to be standard tech will only be have as efficient as the same "standard tech" two years from now. Cell Phones, PDAs, Laptops, etc, all loosely follow this same theory, because they all rely on fairly similair technological innovations.

The iPhone combined many technological advancements into one device; a device that, when it debuted, was easily the only one of its kind. However, the iPhone is already obsolete. Advancements like a full qwerty keyboard, full internet access, and multi-touch screen that made the iPhone so unique not too long ago are now standard fair. All the major cell phone cariers offer alternative versions, some with the same features, some with a few of the same features, some with more.

In spite its loss in originality however, the iPhone has a few huge advantages; it was first, and because it was first it is well known. It's made by Apple, which has been a media favorite lately, and has a loyal following. It's marketed as very easy to use which appeals to a lot of the consumer market, and its music system is nearly identical to that of an iPod, which many people are familiar with.

These factors combined with Apple's new "3G" iPhone, and their decision to open the iPhone sdk to independant developers means that the iPhone will stay relevant much longer than it otherwise would have. However, the fact remains that it is rapidly becoming outdated. What is more, the iPhone like all Apple products, is over-priced. Most phones are bought along with a contract to a service provider (iPhones included) which results in large discounts on the phones because the phone company makes its money on the contract, not the phone. The iPhone does not work like that, buyers of an iPhone are required to pay full price for a phone that is no longer cutting edge, and full price for a network contract. While at the time of the iPhone's debut this issue may have largely been overcome by the hype surrounding the iPhone and the relatively good economic climate.

The economy of 2009 is not as good as it was back in 2007, when the iPhone first made its appearance. While Apple has lowered prices significantly in the time since, and updated the software, as detailed above the phone is a pricey option. In the current economic climate, people who need a phone that does what an iPhone can might turn to more cost-effective options.

The bottom line is this: The iPhone is a good piece of hardware, but it is rapidly becoming outdated, and in this economic climate people will not be willing to pay high prices for brand name luxary items when there are options with similar or identical functionality for better prices. Apple will undoubtedly follow the iPhone with an equally popular option some day in the future, further making its current product obsolete. Apple remains a solid invesetment option, but because of the reasons above, its current iPhone offering does not.

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