Some of the reasons he cites for the iPhones potential failure are the exact reason why it will likely be succesful.
People don't use those gadgets on regular cell phones because regular cell phones have sucktastic interfaces. Playing music on a regular cell phone is not worth the time or effort to try and figure it out. How the cell phone business has gotten away with such non-intuitive interfaces for so long is beyond me.
People don't not play music on their cell phone because they don't want to, they don't do it, because it is simply too much of a pain int he arse to do it.
The iPhone will change that. It is all about the UI. There is literally no such thing as a cell phone or smartphone right now where the UI does not suck.
Given this is Apple's primary strength, it is clear they will make a difference. In fact I suspect this was the primary reason for them entering the cell phone market. They saw that all cell phones have HORRIBLE interfaces, and they are known for making great interfaces. It was a match made in heaven. If current cell phones could give you $100 a day, most people would be poor simply because it would be too hard to get the $100 out of the cell phone.
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