Communication: The phone is going to be exclusively available through Cingular Wireless, a GSM network provider. This is smart as it has the potential to reach global audience as the GSM network is available throughout Europe and Asia, however, Apple's biggest marketshare, aka Fanboys, are pretty much here in North America. It appears that most people prefer to own a CDMA phone here as it offers a stronger signal and less drop calls. I think they should have launched a platform agnostic product, maybe a dual mode like the Samsung IP-830w or launch the phone in two variations.
Music: The phone will cost $499 for the 4GB edition and $599 for the 8GB edition. A 4GB iPod Mini is $199 and 8GB ipod Mini is $249. Most mobile phones are free today. This can make it even the biggest fanboys think twice about forking over the extra cash. On top of the money factors, the a multiple function device is a major battery drainer. Its one thing when you drain the power on your iPod Mini, its another when you don't have the power to make a phone call.
Internet: On top of the power issue that can effect this department, this phone is not going to be available for another six months. The data connection is going through Cingular's slow EDGE