Infrastructure - The US consists of a fragmented set of
wireless technologies and standards, with both GSM and
CDMA based carriers. The iPhone 3G utilizes GSM-based
standards, making the partnership with AT&T the most
lucrative in terms of access to subscribers. However,
moving forward to 4G and beyond, if there is a convergence
of standards and interoperability, a much larger market in
terms of potential subscribers could present itself for the
iPhone. While wireless infrastructure issues may not have
dramatically impacted the success of the iPhone historically,
changes in wireless infrastructure could have a dramatic
impact on future success, and Apple would be well advised
to monitor developments in 4G technologies and beyond.
Another factor to be consideredis the widespread fixed-line
Internet access infrastructure in the US which may have led
to the slow adoption of mobile Internet services. As
discussed previously, iPhone is adept at replicating the
fixed-line Internet experience, which gives the iPhone a
clear advantage in the US (until competitors potentially
catch-up to its technologies and functionality with respect to
mobile web browsing.) To do so, Apple has capitalized on
the Wi-Fi infrastructure in the US, as the iPhone is capable
of utilizing Wi-Fi connection to access the fixed-line
Internet giving users get the same level of services with
reduced cost and increased responsiveness.