Analysis: Cisco’s iPhone vs Apple’s iPhone - My Bet Is On Cisco

Authored by Jay Baage on December 18, 2006 - 9:09am.

Cisco Systems and its Linksys division are causing some confusion and stirring up emotions in the blogosphere when on Monday they introduced a family of Voice-Over-IP (VoIP) devices bearing the high-profile "iPhone" product name. So far, it seems the market automatically associates the “iPhone” with Apple Computer's rumored iPod cell phone project. So, what’s really going on here?

The blog Apple Insider reports that the iPod maker retains ownership of the iPhone.org domain name and has also filed for trademarks on the term at overseas trademark offices. However, the problem for Apple is that Cisco, in fact, holds the registration for the "iPhone" trademark according to the U.S. Patent and Trademark Office. Cisco has claimed ownership of the iPhone mark for the past ten years and stated today that it plans to use the name as part of a larger strategic vision concerning networked homes.

Linksys, a division of Cisco Systems, introduced two VoIP handsets adding to five others the company already offers. The group of phones is now part of a whole Linksys family of products called iPhone. The additional line of phone devices will utilize popular communication clients, like Skype and Yahoo! Messenger, to enable real-time presence features that can allow consumers to see when their friends and family are online and ready to receive a call.

Meanwhile, another Apple insider blog, Think Secret, has released some timely new details about Apple’s iPhone project. Their sources report that the iPhone will be a GSM/EDGE (2.5G) phone and not a UMTS (3G) device:

“Apple's decision to go with 2.5G lies in the technology's advantages over 3G: physically smaller components and more reliable communication.”

Think Secret also states that, according to their sources, the iPhone's price tag has been a particular point of contention with wireless carriers, as Apple would like to see the same price offered for the device across all carriers. In addition, Apple does not want to see carriers subsidize the cost of the iPhone to customers, bucking a wildly popular industry trend.

Citing his own sources, Kevin Rose of Digg.com recently said on an episode of the Diggnation podcast that the iPhone will ship with a 4GB version for $249 and an 8GB version for $449, representing a $50 and $200 premium, respectively, over the iPod Nano.

Meanwhile, Think Secret is stating that it is growing increasingly unlikely that Apple will be ready to ship the iPhone at or around Macworld Expo San Francisco in January, despite word that some suppliers have already started delivering components for the iPhone to manufacturing facilities.

My Take: The hyper-hyped Apple iPhone is long in the making and when it finally hits the market it might suffer the same reception as the movie Snakes on a Plane – the film that generated huge buzz on the Internet but peaked too early. I have no doubt that the Apple iPhone will be a success on some levels, but it will not be the defining device of an generation, like the iPod. Companies like Nokia, Motorola, Samsung and Sony Ericsson have too much riding on the success of their next generation handsets to risk having the music cell phone category slip away to a relative newcomer like Apple.

The Cisco iPhone, however, does not have the same level of buzz. In fact it has almost no buzz at all. However, it has huge potential. The Cisco iPhone allows users to make and receive Skype calls without having to turn on and use their computers. The iPhone WIP320 comes loaded with Skype software and is compatible with Wi-Fi so that users can make and receive calls on the phone from anywhere they can connect to a wireless access point. According to PC World, the WIP320 costs $199.99 and the CIT400 retails for $179.99. Both are available in North America and are expected to become available in Europe, Asia and Latin America during the first quarter next year.

Which will ultimately win the fight over the name iPhone and be the bigger commercial success? My bet is on Cisco.

Joakim Baage

PS: Last week's "announcement" by the blog Gizmodo that the iPhone was going to be released today FOR SURE had everyone mystified by the "leak" from Apple that turned out to be from Cisco. Good one.

Related Links:
Poll: Which i-Phone Will Prove To Be The Largest Commercial Success?
The iPhone Is Launched ... By Linksys, Not Apple (PC World)
Cisco introduces "iPhone" family of devices (Apple Insider)
Fresh iPhone Details Emerge as Release Grows Closer (Think Secret)

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Comments

It really stupid to compare

Submitted by Olivia Odessa (not verified) on December 19, 2006 - 8:21pm.

It really stupid to compare VoIP phone which used internet and Apple Cellular phone. These articles is lack of technical background.

Tech Specs on iPhones

Submitted by Jay Baage on December 20, 2006 - 6:51am.

The available tech data is in the article. But I think you are missing the point. The issue is ultimate ownership of the brand name "iPhone".
Best,
Jay

Another Apple/MAC Sombie Missing the Point.

Submitted by Mike K. (not verified) on January 11, 2007 - 1:12pm.

I believe that the comment made by Olivia Odessa are the frequent ones that you'll find on MAC/Apple sombies/slaves that really get hurt when anyting is said about their beloved company. I agree that the point was missed. The point is that how come Apple is launching a product with all that hype when that name has been registered by a well known company like Cisco for 10 years ? at a time when Steve Jobs was not even thinking about phones, just making animated pictures at Pixar. That's the real point.

Does anyone own the iPhone brand?

Submitted by anonymous (not verified) on January 17, 2007 - 12:29pm.

The web address www.iphone.com is used by The Internet Phone Company and it has made no attempt on its website to claim iPhone as a trademark (ie the letters TM have not been used, neither has it any copyright reference to the name).

A company now owned by Cisco in a Trademark Application claimed the first use of the word iPhone in June 1996 however the www.iPhone.com domain name was registered in August 1995 - some nine months earlier and this registration was listed on a public register for all to see. My understanding is that this prohibits subsequent trademark registration.

All this lends weight to Apple's claim of the word having become generic and not capable of valid Trademark registration.

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