iPhone: Why you may not want to answer its call yet

With the iPhone’s long-anticipated debut just weeks away, the buzz that greeted its January announcement has risen to an ear-splitting roar. A Google search of the term “iPhone” turns up hundreds of articles that in one way or another predict the transformation of cell-phone life as we know it, beginning on June 29.

You can’t yet buy the iPhone, but you can already buy screen protectors, chargers, and other accessories     for it. (For example, see this press release on PR Newswire.) There are also at least 10 iPhone books in the works, such as “How to Do Everything with Your iPhone” (from publishers McGraw-Hill Osborne) and “iPhone for Dummies,”with publication dates as early as August.

All this for a phone that’s been actually held by, like, a dozen people, most of whom work for Apple, and that you can’t even pre-order it yet -- though some AT&T stores are taking names of would-be buyers for a waiting list. (In fact, our test folks have already pre-ordered five in that manner.)

True to Apple’s flair for high style, the iPhone may be the coolest-looking cell phone ever. And as we've previously noted, its specs -- including a 3.5-inch-wide color screen and WiFi connectivity -- are impressive.

But, as we also pointed out a short while after the iPhone’s MacWorld preview, several issues threaten to scuff this glistening Apple. These include a screen that might smudge, a data-network that’s slower than others, and the iPods’ track record for battery life.

To address another concern, that iPhone software will be limited at launch, Apple chairman Steve Jobs has moved in recent weeks to emphasize that the phone’s software will be upgradeable and that the company will be open to allowing third-party software to be developed for the device.

But as more information about the iPhone trickles out from Apple and Apple-watchers, other issues are arising about the device. Here’s a rundown of some:

No iTunes downloads. Unlike phones from Verizon, Sprint, and other carriers, the first-generation iPhone can’t download songs directly. You’ll have to sideload your tunes from your PC.

No expandable memory. The iPhone comes with only two internal storage capacities: 4 or 8 gigabytes (GB). That may sound like a lot, but given all of the Web, productivity, and iTunes capabilities it boasts, heavy users may find themselves running out of space in no time. For example, iTunes just started selling higher-fidelity songs that are about twice as big as the standard versions (8 megabytes, on average, vs. 4). And just one full-length movie from iTunes can eat up 2GB of space. Since the iPhone lacks of a memory-card slot (now common on even low-end phones), you’d just have to keep your finger on the virtual delete button.

No carrier choice. In our recent survey of nearly 43,000 Consumer Reports subscribers, AT&T (formerly Cingular) service turned out to be a so-so carrier. But they have a lock on the iPhone contract for the next five years. And it now looks like they’ll have a lock on your iPhone, as well. Unlike with other GSM phones, the iPhone’s SIM card (a sliver-thin chip that holds your account information) is inaccessible. (On most phones, it’s under the battery, which you also can’t access on the iPhone.) That means you won’t be able to change carriers when your AT&T contract expires--or even temporarily switch to a lower-cost pay-as-you service when traveling abroad. While it’s true that many phones sold by AT&T and T-Mobile are programmed to prevent you from swapping SIM cards, you can legally unlock those phones yourself with a little technical savvy.

But the best reason to hold off on buying an iPhone, or perhaps any phone, for the next few months is that iPhone’s arrival has spurred industry innovation. Almost as if awakened from a deep sleep, phone makers and their carriers are suddenly stumbling over themselves trying demonstrate their cool-phone prowess. Contenders include Nokia’s $700 N95, which has many iPhone-like features plus a very good 5-megapixel camera. (See our preview of the Nokia N95 for free on ConsumerReports.org). And according to RCR Wireless News (a trade publication from Crain Communications), Taiwan-based HTC will reportedly release its touchscreen phone, the HTC Touch, to the U.S. market by mid-year. Expect other iPhone-like phones to hit the market, and for the prices of the N95 and other smart phones like the Blackberrys and  Palm Treos to come down in the next few months.

But even if you’re not in the market for smart phone, the net effect of this competition is that in a very short time, we should see better-performing phones with easier controls along all price points. And that, in my opinion, will be iPhone’s greatest legacy.

-- Mike Gikas

Comments

[Dana]

After using my iPhone over more than 3 days I can say that it is the most satisfying handheld electronic device I have ever used. Even AT&T service is not as bad as I had anticipated, coming from Verizon and my Treo 700W.

What a relief not to have to use Windows Mobile 5 any longer!

[Frank]

One other quick note just to demonstrate how bad your article was. You state, "And it now looks like they’ll have a lock on your iPhone, as well. Unlike with other GSM phones, the iPhone’s SIM card (a sliver-thin chip that holds your account information) is inaccessible."

This is simply untrue. Check your facts before writing an article.

[Frank]

I expect better than this from Consumer Reports. I am really surprised at such a negative report for a device that you haven't even laid your hands on. This is the first time I've read your blogs so perhaps I'm missing something. Do you write the articles here using a different standard? Consumer Reports usually prides itself on objective reporting. There are a couple of valid points in the article but the rest should not even have been mentioned at all until you actually test the device and provide some perspective by comparing it to other smart phones. I will address some of the points you made below:

A screen that might smudge: Have you ever used a Treo or any other touchscreen device? Yes, the screen might smudge. So wipe it off. Also, do any of those devices use high quality optical glass for their screens? I didn't think so.

A data-network that’s slower than others: I will give you this one. Apple has already said this will be added in a future version. This is not the fault of Apple but instead the fact that AT&T has not widely deployed their 3G network yet.

The iPods’ track record for battery life: You should be ashamed of yourself for even mentioning this. First of all, many people get long hours of battery life from their iPods. Second, you should not be forecasting the battery life of the iPhone based on a completely different device. Third, you have no idea how large the battery is in the iPhone or what type of circuitry or power management software they are using. Fourth, the iPhone is running a completely different OS and chipset than any iPod. Therefore you really are comparing Apples and Oranges. Shame on you for even including this in your story.

No iTunes downloads: So, does your research show that this is something people actually want or do you think Apple should have made this possible simply because others are doing it? Apple has never been a follower. I for one have no desire to download songs directly to my phone. Apple has such a great synchronization system and the charging and sync cradle are one in the same. Therefore, it will be a simple matter for people to transfer music each day to their device.

No expandable memory: I would like to see larger memory choices in future devices but given the fact that you will be able to sync every day I don't think it is an issue worthy of telling people not to buy the device.

No carrier choice: This is a legitimate problem. It wouldn't be that bad if they were with Verizon or Sprint since they have better coverage and faster networks but I agree that this is a downfall because I would be an iPhone customer if they were not exclusive to AT&T. However, I left Cingular last year due to poor service in my area and poor customer service.

[Brian]

Thank you for this informative piece, Mr. Gikas. There is a significant problem that may affect the iPhone's introduction that I didn't see mentioned in your piece. This problem is evident on almost all electronics devices. Sadly, few consumers think about this, and the the problem can be exacerbated on these "multi-function" devices. The problem, in short, is...bugs.

Hardware and software bugs (those pesky technological problems that plague all devices) are *extremely* common in first-generation technologies. So, I'm not sure I'd advise steering away from the iPhone because of new competitive handsets, upcoming lower prices, or event AT&T's lackluster service.

No, I'd advise staying away from the iPhone because of bugs. And there will be plenty of bugs. Just wait and see.

I used to work at Apple in California, and it's a well-known fact at Apple (and heck, at all tech companies) that new devices ship to market with problems. It's inevitable. Save your money. Wait 6 months. At least. If you still want one, then get it. Otherwise, wait. You'll be glad you did.

Brian

[Jason]

I LOVE the features of the iPhone. I will not be purchasing one, however, due to two MAJOR drawbacks. The fact that I can only use it with AT&T (a company whose "Customer Service" department TANKED with the Cingular merger and don't seem to be improving with the change over to the name "AT&T") and the inability to expand the memory capacity. Some say that 2-4GB expandability seems weak compared to the on-board 8gigs of real estate, but I've found myself using several cards with my TREO (movies, music, photos etc.) and can't imagine taking a step back to the days when the limits were "all she wrote."
There can be no doubt that the iPhone will sell like hot cakes and will make a lot of people very happy, but for the long term survivability, Apple will have to consider that establishing a "proprietary lock-down" to one cell carrier (which smacks of "Microsoft Mentality") and the inability to expand memory capacity (a small, yet incredibly important feature) may not be the smartest move they've made.

[Olivia]

I cannot wait till the iPhone comes out!! At first I wasn't sure about it because of the price, the memory and alot of other things that could be better about the iphone. Then I was thinking well as don't us the video and use alot of the memory then i'm fine!
I have be buting my butt off just to save up to buy the iPhone!! I'm probably going to be one of those people who have to have it on the first or second day that it comes out!! but there are still alot of questions i have about the iPhone like if you can't change the memory card can you change your number?? and the whole thing about the iPhone can’t download songs directly that You have to sideload your tunes from your PC. Well does the iPhone come with a cd like a iPod would for those people who don't have an iPod?? and alot more!! but I am soooo excite for it to come out because I think AT&T (formaly cingular) will awnser those questions!! (because they are the best survice) and a plus is soooooo many people will switch from other companies just to get the iPhone you can call more people for free!!
~Olivia!!

[Phyllis]

I am one of those who are ANXIOUSLY awaiting the release of the iPhone, but do not necessarily plan to buy one the day it is released. The biggest reason I'm interested in the iPhone is the very success of my aging iPod. I have an older non-video iPod (20GB)that has never let me down. Battery life seems phenomenal to me...(defined as it's always ready to play when I need it). Almost every cell phone I've owned has experienced a battery failure and a replacement battery for a cellphone costs as much as the phone. Unfortunately, cell phone providers make it easier for you to switch than to stay with them. I also love the total simplicity of my iPod and it sure seems that the iPhone will provide some of the same. I'm old enough (50) that I actually have zero interest in watching videos and movies on a 3.5 in screen. But, I am wanting mobile internet. I'm not excited that AT&T will be the only service provider... until my current experience with Verizon, I've been totally satisfied with their customer service and their network coverage. Because of yet another catastrophic cell phone batter failure (will not hold a charge), I bought a pre-paid phone to hold me over until the iPhone is released.
I do want to hold an iPhone... see it work, drive it around the block. But, my satisfaction with my iPod makes me lean toward it.
Phyllis

[Mike Gikas]

Your point is well taken, Matt. Not being able to add an extra 2GB of storage in a pinch may not be an iPhone deal-breaker. (Though memory cards are also a great way to shuttle music, photos, and other files between devices when a PC or network connection is impractical.)

BTW, SanDisk announced 4GB microSDs a few months ago, though I haven't tried one yet.

http://www.sandisk.com/Products/Item(2369)-SDSDQ-4096-SanDisk_microSDHC_4GB.aspx

I understand, however, that they may not be compatible with some mobile operating systems or hardware.

[Matt]

Interesting that you mention the expandable memory as a weakness for the iPhone. I agree that this is a limitation that should be taken into account, but the implication that low-end phones have solved the problem of limited storage questionable. Even hight end competitors like the Nokia N95 support it, but only up to 2 GB! Why I would want "expandable" memory that maxes out at a quarter of the size of my built in memory is beyond me. Either way, people seem pretty excited about 4 and 8 GB nanos, so I don't see the issue. Others who want their whole music library will continue to use HD based iPods.