Can the iPhone become too popular?

As we wait for the next coming (June 9), the rumor mill has been crazier than ever.  One of the rumors about the 3G iPhone that I find interesting is the possibility of it being carrier subsidized, and therefore, cheaper.  Although this may be a great thing for Apple, it makes the iPhone much less appealing to a certain segment of users.

Why do people where Prada?  or drive Benzes?  or where $300 sunglasses by x designer?  They’re status symbols, and those brands depend on having a limited number of people owning their products.  If everyone drove a Mercedes, it wouldn’t be nearly as desirable of a car.   You can call it snobby, but I think I want the iPhone more if less people have it.

The Moto RZR is an interesting example.  At first, it was a premium phone, and was the trendiest, and coolest thing out there.  Then carriers started giving them away to everyone for free, and soon, it became known as a crappy phone.  The iPod has ofcourse enjoyed tremendous success, and I think most sales are still in the lower end shuffles and nanos.  The more expensive classic and touch remain a bit more exclusive.

The iPhone has a great user interface, but I want more from a phone.  I want people to ask me to look at it.  I want it to be a novelty, something that draws attention.  And I’m happy paying $500 for that.

Hopefully, in a few weeks when Jobs makes his big announcement, the iPhone won’t become yet another phone that your grandma has, and it will remain a cool, exclusive device.