Thursday, June 21, 2007

IPhone dials up YouTube: Apple device will stream videos


Add YouTube to the new Apple iPhone’s list of promised goodies.
California-based Apple said yesterday iPhone buyers will be able to stream videos from Google’s YouTube wirelessly.
It’s yet another feature being tacked on as Apple prepares to launch one of the most-talked-about devices in years.
At first, about 10,000 YouTube videos will be available in the high-quality format used by the iPhone. The rest will be available by fall.
The anticipation has been building for months around the launch of the iPhone on June 29.
And, in the end, all that hype might come back to bite Apple as the hoopla leads to unreasonable expectations, said Christopher Hazelton, senior analyst at Framingham-based research firm IDC.

“It’s gotten to the point where it’s such a big phenomenon, it’s such a household name, it’s almost out of control,” he said.
The question remains whether Apple can turn that buzz into big sales - the kind its music player the iPod has been able to rake in.
The iPhone will carry a high price tag, running between $500 and $600.
But Apple is hoping to sell 10 million iPhones in 2008. “That would be quite unprecedented,” said John Jackson, an analyst with Boston-based the Yankee Group.
And the iPhone faces some major hurdles. Its high cost coupled with the price of dropping another cell phone plan to sign up for the iPhone, which can average around $175, might keep many consumers away, analysts said.
Consumers need to take a step back and consider other options that might better suit them, said Bill Nebes, chief executive of IMO Independent Mobile. “It’s sort of like cars you get excited about. You want to buy it, but you don’t think about how it’s going to drive in the snow,” he said. Nebes said other, cheaper alternatives might work better for certain features. The Ocean from Helio, for instance, is good for instant messaging and the Sprint Upstage M620 has a music player while costing less than the iPhone.
But already the iPhone is causing a stir in the mobile industry as more cell phone makers are adopting similar touch screens, Hazelton said. Also, unlike other manufacturers who depend on cell-phone carriers to market and distribute their products, Apple has largely taken control of its launch in spite of its five-year deal with AT&T, Jackson said. Other manufacturers might take a closer look at that business model, he added.

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