Saturday, June 23, 2007

Apple's iPhone casts big shadow on cell industry

If the device—a melding of phone, Web browser and music and video player—is a hit, analysts say it will cut into market share of major phonemakers, including Schaumburg-based Motorola

As if struggling cell phone-maker Motorola Inc. doesn't have enough to worry about: Here comes the iPhone, heir to the mighty iPod, brainchild of tech golden boy Steve Jobs—and riding a tidal wave of hype to boot.

Due in U.S. stores Friday, the iPhone promises to stir up the mobile phone business. Apple Inc.'s first phone isn't expected to take much business from Schaumburg-based Motorola or anyone else in the short term, but it will change the industry landscape nonetheless, analysts say.

"It will not be a financial disrupter, but it will be a psychological disrupter, a research and development disrupter," said Roger Entner, senior vice president of IAG Research's communications sector. "That's because everybody will say [to competitors like Motorola], 'Why can't you do that?' " More>>