When the iPhone hits next month, companies other than Apple might be able to ride on its popularity. According to reports from Reuters, executives at the Reuters Global Technology, Media and Telecoms Summit said that it could also "draw consumer attention to other pricier, high-end handsets."

"One of the great advantages of iPhone for us is that it will heat up the music (phone) market," said Denny Strigl, chief operating officer at Verizon Communications Inc. "We're already seeing an interest in music on cell phones we didn't see just a quarter ago, and the gearing up the industry is doing in preparation for it."

Reuters notes that mobile phones that combine media management and playback features with the usual data and talk functions have been around for years, but their sales account for only a fraction of the market. One of the main reasons is the oftentimes high price tags of these phones.

At an estimated price of US$ 500 to US$ 600, the iPhone certainly fits this description, but consumers who want an all-in-one, multipurpose gadget may overlook that.

"People are not uncomfortable plopping down a couple of hundred bucks for a music player or an iPod (and) $100 for a voice phone or a PDA," said AT&T's group president for operations support, John Stankey. "If you think about what a customer invests to solve a problem...I might suggest that the price isn't as substantial as it might look."