I was right that consumers didn't want to spend money on data but there was a solution to that too. What ended up happening was the mobile networks (at least in the UK) gave the original iPhone users free (almost unlimited) data plans. They sucked us in and now we are hooked. At a time where it seemed the only point of 3G was to send photos and browse the web (actually, that wasn't even the web), Apple put a device in our hands that opened up a whole new world, and the networks took away any worry about how much our new browsing habit was going to cost us.
And now look. We all wondering around using our Google Maps (not for much longer) to navigate, and then once there we are 'checking in' on Facebook so our friends know where we are. Or an even more extreme example, we are finding our where our friends are via Find My Friends. Who could have anticipated such life changing opportunities were just around the corner.
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