Winners, Losers and Why as iPhone Anticipation Reaches Fever Pitch Before Reality Sinks in Over the Weekend

The ridiculously over-hyped introduction of that most revolutionary of products burdened by such mediocre technical specs, Apple's iPhone is here at last and competitors are putting on a nice front by thanking Apple for building demand for smart phones in general.

Indeed, it seems consumers weren't content to wait the six months for the iPhone as Research In Motion (RIM) announced a three-for-one stock split net income grew a staggering 73% to $223.2 million or $1.17 a share from last year, as revenue climbed 76% to $1.08 billion.

For many, this was rather less surprising as RIM finally penetrated the consumer space with its cool new BlackBerry Pearl and Curve products, adding to its base of corporate customers and solidifying its position at the top of the heap of smartphone vendors... in North America at least.

But for those standing in line at AT&T and Apple retail stores in cities around the country (some since Monday) to get their hands on the new iPhone, RIM, Nokia, Palm, and Motorola all have smartphones that have gained a halo effect of exposure to the marketplace, just by giving consumers a less expensive, business savvy option. In fact, it can be argued by growing the pie for everyone with a rather mediocre product that simply delights prospective buyers with a much-improved user experience, Apple has in fact put wind in the sails of all wireless phone makers and carriers alike by disappointing power users unwilling to part with a few days wages in return for the first generation of anything.

Because the iPhone is limited to AT&T's slower EDGE network, carriers are also affected. Countervailing measures are underway tonight at Verizon, who plans on staying open late to allow potential customers to test drive and purchase any of its 18 different music devices, while watching from overseas mobile phone carriers are coming down the wire on negotiation for exclusive rights to sell the iPhone. The buzz at London stock exchanges was Vodafone had the lead as share prices have been increasing all week on anticipation of winning European rights over T-Mobile and Orange. Even market leader Nokia has decided to offer its latest E-series smartphones to customers directly and unlocked to allow for flexibility in consumer choice, something buyers have sought forever to avoid costly contracts with carriers.

But will smartphone makers and carriers be prepared for what the weekend brings as they sally forth to compete with the iPhone in hopes that the hype will rub off on them? No doubt, as smartphones become increasingly ubiquitous, it no longer seems that a consumer will first choose a carrier and then select from the handsets on offer, but decide the carrier choice based on the appeal of the device first and foremost instead.