Telstra to Apple: 'stick to your knitting'

Telstra has all but ruled itself out of the running to carry Apple's new iPhone mobile when it is released here next year with a senior executive launching a withering critique of the device.

Telstra's operations chief Greg Winn, considered the telco's second-in-change and the man who oversees most of its big product decisions, believes the iPhone may meet some significant operational challenges when it makes its market debut.

"There's an old saying - stick to your knitting - and Apple is not a mobile phone manufacturer, that's not their knitting," Mr Winn told AAP.

"You can pretty much be assured that Nokia, Motorola, Samsung, Sony Ericsson and ZTE and others will be coming out with devices that have similar functionality."

In addition to mobile calling, music portability and email capability, the iPhone boasts a vastly enhanced design that significantly challenges most mobiles' current approaches to user interface.

The phone's touchscreen is also considered a significant drawcard but it's technology Mr Winn does not believe makes the device truly revolutionary.

"I think people overreacted to it - there was not a lot of tremendously new stuff if you think about it," he said.

"It was maybe kind of cool on the touchscreen technology but touchscreen technology is another domain, so it's only a matter of time before it went to the device."

His comments were all the more surprising given that Telstra was originally touted as being hot favourite to cut a deal with Apple.

The iPhone uses a GSM wireless technology called EDGE, which is widely known as "2.5G". It is not clear why Apple did not decide to support faster 3G technologies, although this has not been ruled out of product revisions.

In Australia, only Telstra uses EDGE, making its network the only one that the iPhone could be used on - based on the device's current specifications.

Mr Winn said from a marketing perspective, Apple had committed a number of oversights, including its name, which provoked a corporate slanging match with enterprise systems group Cisco, which had previously registered "iPhone" as one of its own trademarks.

Apple's exclusive carrier arrangement with US mobile carrier Cingular was also puzzling. "They did an exclusive with Cingular and they talked about a global rollout - well, Cingular is not a global company," he said.

The non-replaceable battery may also be a sticking point with consumers, as it has been with the iPod.

But while the phone will probably leave a mark in mobile design, its commercial success is less certain.

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It won't be available to Australians until next year, but US consumers will be able to buy it from June.