Nowadays, one can see many cell phones with wide range of features like music, camera, videos, games, etc. Nokia, Sony Ericsson, Motorola, LG Electronics, Samsung Electronics seem to be producing highly acceptable cell phones with high range of features. This has proved Apple little bit difficult to compete with these companies.

At a price tag of $500 to $600 which is spectacularly high resulting in opening the door for other handset makers with similar models worldwide. Despite of this fact Apple still expects to sell 10 million of the phones in 2008.

Consumers who desire to multiple devices like phone, digital music player and personal information assistant may like to have a device with combined features, this may help them increase their spending budget. ipone will have to reduce its price tag in order to compete with other competetors.