A wire coil inside an iron pipe is ineffective as an electromagnet because the core's design does not concentrate the magnetic field lines effectively. Instead of returning through the air, the field lines return through the center of the coil, which diminishes their strength at a distance. This configuration limits the electromagnet's ability to attract ferromagnetic objects, making it suitable only for thin plates. Similar designs are used in permanent magnets for applications like car radio antennas. Overall, the geometry significantly impacts the electromagnet's performance.