If the iPhone doesn't sell, how about the other uses?

This Friday (6/29), the iPhone finally goes for sale. Every website, newspaper, and 1 out of 3 blogs will write about it this week for the 700th time and Apple Inc. (NASDAQ:AAPL) investors eagerly await the impact of "what will happen after Friday when the iPhone goes on sale" to the company stock.

Steve Jobs has projected sales of 10 million iPhones in its first year and Piper Jaffray's Gene Munster predicted Apple will sell 45 million iPhones by 2009. But what if they only sell, say 1 million because something goes wrong with them?

What if that iPhone glass surface causes more problems then they could have ever imagined? What then?

Well it just so happens the StockMasters have come up with some alternative plans for the iPhone and how Apple might be able to chase down some new "strategic sales alternatives".

1. Coasters - This is the most obvious of all alternatives for "other uses" for your iPhone. A set of 8 iPhone coasters will only cost you (8 x $500) $4,000 but just think how vogue they will look on your coffee table? Be the talk of the town when your guests come over and place their beverages on your iPhone coasters. Be careful not to crack the iPhone glass, you don't want to replace them a week after buying them, so just remind your guests to place their drinks down gently on the iPhone. After all, you waited how long to buy this thing again?

2. Forget a stack of napkins, the iPhone makes for a spectacular wedge to balance an off-set table. The iPhone's classy look goes much better in your office cafeteria then a bunch of balled up napkins. If one doesn't do the trick, try 2 or 3 of them together, nothing says cheap like a $1,500-table-balancer.

3. If it turns out AT&T (T) blows it with their service for iPhones, just use good ol' fashion string. You bet. Make sure your buddy buys an iPhone, then simply tie a string around the 1st iPhone, then tie the string around the 2nd iPhone and presto... You can play telephone. Bring back the memories of a classic childhood game, and reminisce as you pretend to hear your buddy talk about anything you want. Line busy? Silly guys, come on, use the call waiting by slamming the iPhone as hard as you can on the ground. It's a chance to relive the days of the past and it will only cost you $1,000 total. You can't put a price tag on 'Fun'.

4. All right, let's say that the technology works like a champ but nobody buys it because they cost $500. It just so happens that Apple has built the iPhone to replace Darth Vader's chest box. AT&T (T) has partnered with the Siths to create an enhanced breathing and body monitoring experience that they hope to implement on today's disabled and Darth Vader nerds. One of Darth Vader's closest friends Boba Fett (shown next to Vader in the picture included) had this to say about the iPhone upgrade:
"Well, I wasn't too sure about it because I thought the switches and light display he used to have gave him a vintage look but he's really improved his style by the iPhone chest box. It's pretty cool that I can walk up to him and get the time, surf the net, make a quick call home, and watch YouTube videos on his chest -- so that's a real plus. I'll admit, it took some getting used to, but if I ever need a full-body-life-suit, I'm buying one for shizzle."

But let's be serious, here are the top 5 reasons to buy (or not) an iPhone put together by Jeff Haywood

Five reasons not to buy now

1. Unproven touchscreen: Demonstrations of the device show an impressive touchscreen user interface. But can the iPhone's glass surface handle the abuse of users' fingers, or will problems with scratching arise as they did with the iPod? Also in doubt: How well will a virtual QWERTY keyboard work?

2. Battery: While Apple boasts the iPhone battery can handle eight hours of talk time or seven hours of video playback, the design does not allow users to replace the battery. Users of other smartphones don't have to worry about conserving power during a trip if they can pop in a spare battery.

3. Slow Internet cell service, missing features: The iPhone can access the Internet through WiFi hotspots, but a majority of users will connect online through the old AT&T/Cingular EDGE cellular network. While speeds of networks are debatable, the service probably will be at least five times slower than high-speed access provided by AT&T/Cingular's new HSDPA network and some other cell-phone carriers. The iPhone also lacks features found on competitors, such as GPS and instant messaging.

4. AT&T/Cingular: The iPhone's lone cell carrier for at least the next five years rated below U.S. Cellular, Verizon Wireless, T-Mobile, Sprint Nextel and Alltel in this region, according to JDPower.com's 2007 wireless call quality performance study. AT&T/Cingular does offer a 30-day trial period in which customers can return the phone and cancel the contract if they are unhappy with the service or phone.

5. First-generation product: Apple has a history of releasing new devices with some bugs (I bought a first-generation iPod that never turned on). And while Apple's phone may be revolutionary, better versions with more storage space, a better camera, higher-speed access to the Internet and a lower price are likely coming in the years ahead.

Remember: A year-and-a-half after the first iPod was introduced in 2001, Apple was selling a version that was $100 cheaper, was smaller and had double the storage capacity.

Five reasons to buy now

1. The best-looking iPod: The 3.5-inch display is larger than any iPod and is Apple's only handheld device with a widescreen format. But don't be surprised to see some iPhone features trickle down to the iPod family before the holiday season.

2. Web browsing with WiFi: Most cell phone browsers offer only a stripped down version of Internet. The iPhone's shows the entire Web page and allows users to zoom in on areas they want to read more about. And if users are lucky enough to have access to a WiFi hotspot, the Internet speed will be more than acceptable.

3. Visual Voicemail: Most voicemail systems force users to wade through messages in the order they were recorded. But the Visual Voicemail service provides a list of messages, much like e-mail, that allows the user to pick which to listen to first.

4. Google Maps: Apple and Google have teamed up to produce what appears to be a slick interface with the popular Google Maps service. Looking for a place to eat while out of town? A search for the city's name and a favorite restaurant will highlight the location of each restaurant. Touching one of the locations brings up the address and the option to call the restaurant.

5. YouTube videos: The iPhone currently cannot play Flash videos that are featured on many Web sites, but a deal has been worked out to put a special YouTube player on the device.

Bottom line

If you have money burning a hole in your pocket, don't need the missing features and feel lucky that Apple and AT&T/Cingular have most of the bugs worked out, this is the phone you've been waiting for. It is being sold first-come, first serve, so get in line early.

But those with patience likely will find a more powerful (and cheaper) iPhone 2.0 next year. May the iPhone be with you.

Article written by: Frank Lara Jr.
Article posted on: June 25th, 2007

Disclaimer: The Author owns shares of AAPL and is holding a long position.