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The iPhone's international challenges for the mobile phone industry

Even if the iPhone is the greatest technological advancement since the wheel, it will be a drink coaster if AT&T doesn't get its act together. Apple has made a great, innovative product; however, in the U.S., Apple has tied itself to the AT&T network that is not equipped to make the iPhone "techno-rati" dream come true. Perhaps international telecommunications markets will fare better.

AT&T is treating the iPhone like a novelty toy, rather than a business tool. The iPhone is both, and it is time AT&T treated it as such. AT&T is currently refusing to permit businesses to add iPhones to their existing business phone service. This has created a situation where business people who want an iPhone, but work for companies that already provide their cell phone, are forced to buy the iPhone and activate it on a personal phone account. Why? Who knows? Apparently, people from an editor at MacWord to small business customers across America have hit this brick wall. Although my husband bought his iPhone at an AT&T store, he still spent the better part of the Fourth of July weekend, including four hours on the phone with AT&T customer service trying to activate his iPhone, just because his account is considered a small business account.

AT&T's treatment of the iPhone as more for personal than business use is shortsighted, and it must be corrected before the iPhone hits international markets. AT&T's reasoning seems to be since most businesses in the U.S. still use PCs rather than MACs, businesses will not have the same need for the iPhone. If this is AT&T's reasoning, it is unfortunate for Apple. Providing easy access to the iPhone for business customers may spark an interest in converting other business technology to Apple products.

College students who love their iPods and iBooks are flocking to buy the iPhones. If given the opportunity, it may be this approach would work as well in reverse; businesses using iPhones may look more seriously at Apple the next time they purchase hardware. On the other hand, if business people cannot get an iPhone activated without hand-to-hand combat with AT&T, it may leave a bad taste regarding Apple products in general. Therefore, businesses will continue to gravitate to the new Blackberry or other similar products.

How does all this translate into the international market? Quite simply, the international market for expensive iPhones will be far larger initially in the business sector than for personal use. Before the iPhone debuts internationally, the tired old misperception of Apple products being just for fun or creative types must be laid to rest. Apple is, and always has been, ready for business use. Apple products are superior to PCs in nearly every category imaginable. AT&T's strategic exclusion of the business market from effortless conversion to iPhones is patently unfair, both to businesses and to Apple, and it must be corrected before launching the iPhone internationally.

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