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Ryan Block from Engadget has recently written an interesting article that explain the “why” for the high demand for the product:

1. Cellphones today suck. Especially smartphones. It’s 2006 and a good phone — and I mean an honestly really good phone — still hasn’t been made. A new competitor — any new competitor, be it ALP or Linux or the Applephone — is highly anticipated.
2. People are already sick of Windows Mobile dominating the landscape. I’ve been a long time Windows Mobile user, but let’s face it, it’s pretty much the only smartphone game in town in the US. You can go Symbian, but the devices just aren’t there through carrier purchases. Palm is obviously a joke, and Linux / JUIX is nowhere to be found.
3. Cellphones haven’t gotten music integration right. Sure, there are enough phones with media buttons and microSD slots to go around, but that doesn’t mean they work well.
4. Using your phone and your Mac is often a painful and tedious experience. In fact, the same goes for using your phone and most any computer.
5. People are curious to see how radically the cellphone can be re-envisioned, and the expect Apple to lead that charge.

Frankly, moving onto the cellphone market is Apple’s only way out, since sooner or later the concept of DAP will disappear, and so will the concept of cellphones, as we know it. Since their partnership with Motorola didn’t work out as well as they expected, going into the market themselves seems like a natural move if you ask me.

Most of the current cellphones look terrible (in my opinion), and there hasn’t been anything revolutionary happening with their interfaces, and those are two of the characteristics that Apple’s products excel at, so if they play their cards right, there could definitely be a place for them in the highly disputed cellphone market.