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Apple’s iPhone

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Author: Helen Wooley

Apple's iPhone is one of the most anticipated phones this year, and now we have more rumors to fuse it into your head. The new rumor is Cingular will be the first service carrier to use iPhone. Apple got a share of the monthly fee, plus the purchase price (less a margin if AT&T sold the phone). That structure would create no barriers for people to buy new phones whenever they felt like it. Apple stopped taking orders for the iPhone in May, presumably to make way for the new model. Sales could substantially beef up Apple's bottom line, Munster says.

Apple should just be honest about it and tell users and developers like it is — an iPhone is an appliance, no different than a Nintendo Wii or any other closed box. Right now, they're feigning greater openness than they're actually providing, causing prolonged confusion and ill-will. Apple has had some testy relationships with mobile companies. It had already developed a reputation for hardball negotiations, thanks to its tough approach to dealing with the record labels for its iTunes music store. Apple's freshly announced iPhone looks like an extremely cool gadget that I wouldn't mind laying my hands on, and bring out The only drawback with the iPhone . I actually think the name "iPhone" is a bit misleading.

Apple should be seen more like Microsoft. Apple has even said as much that the iPhone OS is OS X with all the non-essential stuff ripped out and replaced with its unique UI code (including multi-touch). It's basically a stripped down and customized version of OS X. Apple is going to act like they're the only user of your app because they are. It's like if you score a Spielberg movie, what music you hear in the final cut is going to be up to Spielberg.

Apple spent a lot of time and effort developing this distinct and innovative way to seamlessly deliver core functionality of the iPhone. For example, on an iPhone, the "Phone" icon that is always shown at the bottom of the Home Screen launches Apple's mobile telephone application, providing access to Favorites, Recents, Contacts, a Keypad, and Visual Voicemail. Apple last week also made a bold business move to complement these new products. It decided to keep making the current model, the iPhone 3G, and to slash its price by 50%, to $99. Apple's new 3G iPhone might seem like a bargain at $199: more features, 3G speeds, and $200 cheaper than the original model. Great, except it's not actually cheaper.

Apple's engineers were scrambling to revise the phone's software, and the company delayed by a week a software development kit that would open up the iPhone to outside developers. It was all backed by a $100 million "iFund," launched by Kleiner Perkins to fuel developers crafting applications for the phone. Apple is considering a software update to fix this. Apple wants their phone to be desireable, and installing 3rd party software is desireable. I also recall seeing support for Microsoft Exchange in the keynote.

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