Threat of New Entrants, ultimately the iPhone is going to face the most competition from imitators who can sell a similar or comparable device at a lower price. Most of these threats are going to come from established players in the cell phone industry (such as LG and Samsung) rather than companies trying to enter the cell phone market an added.
Not for saying only, however, that new entrants may not be around the corner. Software Company and mobile apps company such as Google and Microsoft may pose a credible threat at entering the cell phone market and trying to carve a niche out for themselves.
It has been rumored that Google has a team actively investigating such a move and Microsoft currently has a lot of experience creating software specifically for mobile devices. It remains to be seen, however, if either company will take the initiative to enter into the cell phone device market directly rather than content themselves with creating licensing software for cell phones.
There is no substitutes of the iPhone mainly distinguishes itself from competitors over its user interface which is driven by a multi-touch screen. iPhone Application Developer claims various patents relating to this technology. However, it is still likely that other players in the market will soon be able to deliver similar products. Synaptics and LG have already disclosed details of coming products which feature touch-screen interfaces, as well.
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