Will the iPhone take over the world?

Q: I was wondering what you think of the iPhone. Maybe it's just me, but over time I could see the iPhone taking a huge chunk of not only the cell phone market, but also the smartphone market. Assuming this happens, does it level the cell phone industry between the United States versus the rest of the world in terms of handsets? This may be a stretch, but assuming the iPhone becomes 75 percent as popular as the iPod, what happens to the rest of the industry? --Dean

A: After years of enviously watching my CNET colleagues in Europe and Asia get all the cool cell phone so much earlier than me, I have to admit I was pretty happy when the iPhone came along. The reasons for my joy were entirely selfish. For the first time in my career at CNET, I was getting something before my counterparts in London and Singapore. Rather than sitting on the sidelines for several months, I got to play with a snazzy new device first and I got to write the first CNET review. When my friend at CNET Asia said she was jealous, I couldn't help but smile.

All right, so maybe my reaction was a bit immature, but I can't describe just how nice it was to get something first. The introduction of the iPhone definitely brought the spotlight to the U.S. cell phone market, but I'm not so sure the warm glow will last. Eventually, the iPhone will be available worldwide and the U.S. will be just one country out of many that has it.

To answer your questions, Dean, even the iPhone has not saved the United States. Thanks to a number of factors, many of which I discuss in a previous On Call column, this country simply can't compete with the variety of high-end models available overseas. As former FCC chairman Reed Hundt said, manufacturers bring their devices to the United States after they've introduced them everywhere else. Of course, this isn't true all the time--Moto is very good about giving us some love--but Nokia and Sony Ericsson in particular tend to get to us last. That's a shame because both companies make fantastic products. Just look at the Nokia N95. It was around for quite a while before Nokia introduced a North American version. What's more, while Nokia and Sony Ericsson stole the show at the recent GSMA World Congress, there's no word on when their promising new devices will land stateside.

LG and Samsung are better, but they could stand to give us more attention as well. We get a lot of slim Samsung slider phones such as the SPH-M520, but the Samsung SGH-G800 and SGH-i450 still live only in our unlocked dreams.

Back to the iPhone for a moment?despite the device's shortcomings, Apple has emerged as a powerful player in a very mature market. I don't think the iPhone will ever reach a market share close to the iPod's--there are just too many experienced players in the cell phone market--but Apple's market share certainly has room to grow. What's more, last week's announcement that the iPhone will support Microsoft Exchange can also boost Apple's hopes further. By fixing one of the biggest deficiencies of the current iPhone, the company has targeted a new segment of users. As I said in the iPhone review , Apple's handset is noteworthy not for what it does, but how it does it. The iPhone is a great device, and while it's far from being the greatest cell phone in the world, its appeal is very authentic. But don't think for a second that Apple's rivals aren't noticing that.

Q: Do you know of any glitches that involve the iPhone where the phone goes in to energy save mode and stays that way even when you want to use it? I have had that problem since I purchased my iPhone six months ago. I have been to the Apple store but the technicians cannot diagnose the problem. They suggest that I leave the phone for repair and if I want a loaner they will charge me a $30 fee for it. That's pretty aggravating since it is still under warranty. What do you suggest I do to resolve this issue?
--Ximena

A: I haven't heard of this specific problem before and I haven't encountered it in the iPhone review model that we keep around the office for testing. I'm sorry to hear the Apple technicians can't diagnose the problem as that's undoubtedly frustrating. Also, I agree that a $30 fee for a loaner is aggravating, particularly since you paid so much for the phone to begin with.

I'm not familiar with your specific warranty, but can you exchange your faulty handset for a new one? Your phone may just be a lemon, so I'd rather have a brand new model instead of a repaired model that can possible break again. Going this route would also free you from paying that ridiculous loaner fee. I would press this as a solution, while complaining about the customer service in the process.