iPhone Preparing to go Mainstream

The Apple iPhone has managed to accomplish a number of things in the two years since it was announced and the 21 months since it went on sale. First, it has defied many an analyst by demonstrating that a new player in the mobile phone market can establish itself, carve out a segment of the market, and profitably compete. This may not sound like much, but remember that two years ago, analysts were debating whether Apple could succeed in the mobile phone market. The arguments ranged from lack of experience, to lack of support, to lack of features, to being limited by the exclusive agreement with AT&T. Many an analyst scoffed at the idea that Apple would be able to sell 10 million iPhones in its first full year (2009): They sold 13.7 million iPhones.

According to Apple, they have sold more than 30 million devices running the iPhone OS which includes both the iPodTouch and the iPhone. They have managed to do this despite lacking Flash, cut, copy, and paste, and MMS support offered by many competitors. They have managed to make significant inroads to the smartphone market during 2007 and 2008 even though they did not offer a 3G smartphone. They continue to take market share despite having a phone with questionable battery life. While many continue to decry the iPhone's lack of features, it is interesting to note how many phone manufacturers are doing their best to develop a competing product.

What analysts fail to realize (and I suspect to a certain extent Apple itself) is the iPhone has that unique ability to cut across demographics (much as the Nintendo Wii), to cut across geography (the iPhone can be found everywhere, whether licensed or not), and to cut across markets (it is a phone, a PDA, a smartphone, a netbook computer, and a device controller). Young and old are using it. Politicians, mothers, and geeks are using it. Salespeople and gamers are using it. Businesses and retired people are using it. It has single-handedly changed the view of the smartphone market.

With the iPhone 3.0 software and accompanying enhancements to its iPhone hardware, Apple is preparing to to move the device into mainstream acceptance. To do this, it must accomplish the following:

• Deliver a business-class product: With the 2.0 network and security improvements and the 3.0 applications capabilities, iPhone will rapidly become the device of choice for small and medium-sized businesses. With the introduction of external device controls (such as video recording equipment and keyboards) and additional application support (such as Documents-to-Go), the iPhone becomes a full function mobile office. Documents-to-Go support may well become the business killer app for the iPhone. This will occur this summer.

• Deliver a world-class gaming platform: With the peer-to-peer networking introduced with iPhone 3.0 software, the ability to purchase upgrades from within the application, expected graphics improvements with the next generation of device, and improvements to power management, the iPhone will truly become a world-class gaming device. When game makers develop applications that can interface across platforms (PCs, Macs, and iPhones), the killer game app will have arrived. This can be expected before the end of 2009.

• Deliver a world-class Internet browsing experience: This may be the weakest area for Apple. It is ironic that the Mobile Safari full-browser was one of the major selling points for the iPhone in its original release. The Safari browser has now become a weak point. The problem is Apple is trying to force a standard on the market and to date, the market is not buying. This is most evident with the lack of Adobe Flash support. Far too many Web sites use Flash for iPhone not to provide support. As a result, the iPhone is NOT a universal Internet Web browsing device because it cannot render a significant number of highly popular sites. Much like the lack of openness with the Apple operating systems in the 1980s, this lack of Flash support may become the Achilles heel for Apples mobile phone and services strategy. Even a poorly performing implementation would buy significant time.

You will notice that I did not include video support. The reason is that with external device support, the iPhone manufacturer ecosystem will provide that support in a small plug-and-play device that will 1) provide superior video to the built-in camera; 2) reduce battery drain on the iPhone; and 3) will provide a range of format up to and including HD. While video may be in a future iPhone, third-parties will provide superior implementations with Apple's blessing.

Thus, with the introduction of the 3.0 software, the iPhone finally goes mainstream. It will enable reporters to capture and file reports from the field, salespeople to capture orders real time in the customer's office, and anyone to work on-the-go. Oh yes, it will also make phone calls.

What have I missed? We would like to hear your ideas, comments, and input.

iPhone 3.0 Features Announced

It has been a long time coming, but Apple today announced the features to be included in the iPhone OS 3.0. The features are impressive. First the to-date statistics:

• iPhone is now in 80 countries; will be adding 15 mor countries to the 62 that already have the iPhone (math is evidently not their strong point)
• Sold 13.7 million iPhones in 2008
• 17 million iPhones sold total so far
• Including the iPod touch, sold over 30 million iPhone OS units to date
• Now over 25,000 apps in the AppStore

The new SDK will open up an additional 1,000 APIs to developers. The same tools are used for Apple internal development. Features of the new SDK and OS 3.0 include:

• Copy-and-Paste capability (at last!). As presented, it works exactly the way Kevin Rose described in Diggnation. Double-tapping a word brings up the copy/paste menu; dragging two icons allows the user to select the amount of material to copy or paste; then tapping a spot brings up the magnifier allowing the user to select the location for pasting. The capability will work across all iPhone applications. A nice touch (no pun intended) is the action can be undone be shaking the iPhone.
• iPhone 3.0 allows multiple photograph emailing. Before, only one photo at a time could be emailed. A photo icon allows the user to bring up a selection screen to select multiple photos to attach.
  
• Introduced a new Messages application that enables MMS for voice, photos, contact cards, location information, etc. The application also allows forwarding messages, and recording and storing voice memos. The application will support both the internal and a plug-in external microphone. It will also allow editing the voice memo, including trimming content. Finally, the memo can be emailed.
• Can now subscribe to additional calendars. In addition, the calendar application adds new support for Microsoft Entourage. Supports all .ics format calendar files.
• iPhone 3.0 has added more search capability by implementing a Spotlight search application for comprehensive search including address book search; email search (by from, to, subject, and headers); calendar search; and notes search (by title and body content). Will allow search across all applications.
  
• Landscape support for both email and notes (again, at last!).
  
• Improved Stocks application with stock news access and more details about stocks.
  
• Notes application sync with the Mac or PC through iTunes.
• Wi-Fi automatic login when a hotspot has been detected.
• Stereo Bluetooth now supported.
  
• Safari has added features including anti-phishing filters, remembers log-in credentials, and has implemented additional parental controls for movies, TV, and applications.
  
• Can now purchase additional content from the AppStore from within an application. It is no longer required to leave the application. This enables an application to sell a basic version and then sell incremental add-on content and capability as the user desires. Examples include purchasing additional "levels" for a game; location-specific content for an application (dining guides, maps, other information); or additional features.
• Peer-to-peer connectivity through bluetooth for gaming and external device control. Bonjour-powered and does not require pairing. This allows multi-user gaming on iPhones without the need for WiFi or 3G. It also allows iPhone users to control everything from equalization on a speaker (that supports such control) to managing medical devices from the phone. Another example is that for an application such as the musical Ocarina, multi-players can now simultaneously play multiple instruments.
• Apple has opened the Maps API to developers, but developers have to bring their own maps. This API allows geolocation, reverse geolocation, cell-tower triangulation, turn-by-turn directions, and similar functions. The reason for the developer needing their own maps is a licensing issue.
• Apple is implementing third-party push notification and background application activity. It will be mediated through Apple servers which will allow it to be more power-efficient than Blackberry or WinMobile (only 23% additional power drain versus 80% power drain with background applications activated). With the push API, developers can push sounds and alerts to the iPhone.
• Other APIs include using proximity sensors for iPod library access; built-in VoIP API; APIs to allow access of a second application's controls from within the first application (for example, a SIMs game character playing music from the iPod library).
• YouTube application has been enhanced to allow account log-in, subscribe to channels, and save videos.
• Features for tethering are included in the 3.0 update, but they are not implementing them at this time. It appears there are still issues with the carriers.
  

The iPhone 3.0 beta is available to developers immediately and will be rolled out to users this summer. It will work on both EDGE and 3G versions of the phone, although some features will not work on the older phones (example given was stereo Bluetooth). The update will be free to iPhone users and will cost $9.95 to iPod Touch users.

With these features, it is evident that Apple is expanding the iPhone's reach both vertically and horizontally. First, the vertical expansion is in the form of reaching further into a business' supply chain. The example given was an Oracle inventory management application on the iPhone that would allow immediate notification of stock-out situations and enable the user to immediately send a notice to a customer. There were numerous examples of business and medical application support demonstrated that provides insight into how Apple sees this platform progressing in the corporation.

Horizontal expansion is in the area of reaching further down the user chain. With the demonstration of networked "pets" and pet social networks, it is obvious that Apple is positioning the iPhone to a younger and younger crowd. This is probably setting the stage to additional iPhone models at the lower end.

With the features introduced in the iPhone 3.0 update, Apple has laid down the gauntlet to other phone makers that it intends to not just become a substitute for their products, but to create a totally new market. This market will be the "broad spectrum" smartphone with capabilities and cost to make it attractive across the entire mobile phone range.

Your additional insights and comments are welcomed.

iPhone Reset

I have noticed an interesting problem with my 3G 16GB iPhone. I have had the phone since last July, but the current problem only showed up over the last week or so. I have 3Gb free, so it isn't because of lack of space. However, I do have 104 added applications along with eight saved links on my springboard. All applications are up-to-date.

With that background, the problem is two-fold. First, every so often when I first turn the phone on, it will boot up as a virgin phone. That is, it requests the user to plug the phone into a USB port and the only action you can take is to access the emergency dialing. When the phone is cold-started (holding both the on/off and home buttons at the same time), the screen notifies the user that the phone has been activated and the phone works normally--until the next time this occurs.

The second problem is that since the last OS upgrade the phone seems to respond more slowly. In some cases, the time from selecting an application to actually having that application active can run to 15 seconds!

While these are not major problems, they are annoying. Has anyone else seen these problems? If so, has anyone found a way to eliminate them? We would like to hear your feedback.