Analyst Says iPhone Demand is Strong, But The Product Needs To Get Smarter

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Analyst Ben Reitzes of UBS says, based on AT&T store surveys, iPhone demand remains strong long after Apple's hype machine winds down. The firm's target expectation for iPhone shipments in the fourth quarter is 800,000 units, and Reitzes believes Apple is on track to beat its set goal of 1 million iPhone shipments.

Today's published study by UBS yields some interesting factoids. One being that, despite all the naysaying, iPhone has a low return rate. Many skeptics had predicted iPhone returns en masse by frustrated consumers.

Another takeaway is iPhone, at least so far, hasn't suffered a loss in sales momentum. That surprises even myself, as I expected a sharp drop in sales within the first eight weeks of launch, as hype died down and the early adopter market had quelled.

But the report wasn't all flattering. UBS cautions that iPhone is in desperate need of critical feature integration. Among the list of must haves are the following...

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So, all around the news looks pretty good for iPhone. Sales are solid with good momentum, despite tapering hype. And Apple is set to beat its sales projections. Let's pray for all our sake that Apple listens to the rising chorus of critics and answers those feature requests, ASAP.

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There are 5 comments. Add yours.

Michael Webb says:

I would really like to see the addition of Instant Messaging and Picture Messaging, these seem like two glaring holes for the iPhone. Also, the downloading of content (including Ringtones) directly from iTunes would be much appreciated.

AdamJ says:

If you haven't already tried it, BeeJive, is an IM client web-app that allows you to use multiple IM systems at once. They have been actively updating and refining it, and it is very useful. I've used it both on WiFi and EDGE and its alot better then I expected from a Web app.
Sure, it would be (will be) great when an IM client that is a native app is available, but I think this client is better then many believe it will be. Point your iPhone browser to iPhone.beejive.com to try it out...
One item I always find funny is the request to have landscape keyboard available in all apps. I understand why people ask for it, but in reality I prefer portrait keyboard. I use two thumbs to type relatively fast in portrait mode, only messing up one out of every 4 or 5 words in which is auto-corrected. In landscape mode I cannot two-thumb (at least not easily) and have to pick and poke using one finger... slow...

Jordan says:

One feature that analyst requested is already a feature: the ability to change songs without touching the screen while working out. You can squeeze the headphones mic twice and it will skip to the next track (once will pause it). Most iPhone owners I know don't even know that "squeeze" feature exists.

Jason says:

Actually, there is also Meebo which has a fantastic chat app for all the major networks. Go to http://wwwm.meebo.com. Works well in my opinion.
What they really need to do is a 'mark all as read' feature for email. I hate having to go through each email one at a time.
Also, I wish I could listen to wav files that are attached to my emails. These are voicemails that are emailed to me from my company VOIP phone.

clay says:

landscape typing format would be a huge fix. i have big hands, and have trouble actually holding the iphone naturally when trying to type in portrait mode. MUCH easier in the landscape mode. hoping for that fix soon.