Should Apple worry about iPhone competition?

Wired ran this story, “Why Apple Can Afford to Phone It In With the Next iPhone.” It basically reads that the next iPhone, expected to be announced next week, will likely be a minor upgrade. Of course this is all based upon rumors, but as much as Apple tries to be secret typically the rumors aren’t that far off. Aside from the fact that this is all based upon rumors I am inclined to agree with the analysis with one word of caution.

Recently I have been writing about the Android rumors. I really am excited about it, but I have mentioned that my excitement is when they mature and that this is a good indication of what will be when my current iPhone contract runs out. Let me back up. When the iPhone first released the blogs were all abuzz and people lined up for days to get their hands on the first, worthless IMO, iPhone iteration. I largely ignored the first iPhone, not because I didn’t see the bright future, exactly the opposite, but because I knew the future held much more promise than their first release. Apple tested the waters and they were good. So good that they quickly released the iPhone 3g. It was at that point that the hardware was complete enough, though they could have done much better, and the software was complete enough, app store anyone, to grab my attention. Indeed, with that launch Apple sealed their prominence that every other hardware maker aspires to have now. But what this shows is that everyone must go through the growing pains. When Apple released the original iPhone they probably never imagined that the app store would take off like it did. They may not have imagined how people would eventually use or want to use the hardware. The initial released was the baby stage for what would blossom into a powerful teenager. It was and is at this point that I decided it was ready for my use, and it has proven up to the task. With the release of version 3.0 of the software Apple will finally mature the iPhone into adulthood. Where we are now with all other smart phones (Palm pre, G1, Android, Storm) is still infancy. It took Apple over a year for each stage to mature so it only makes sense that all others would follow a similar path to maturity if not slower. So as I see it Apple owns the smart phone market. All other competitors fail on multiple levels, but not for lack of trying. In this way the Wired author is correct. Apple can release a minor upgrade to the iPhone and not worry about losing market prominence or superiority.

With all that said my word of caution is this. Now that Apple is an adult it stands out from the rest, but it is now perched on a ledge waiting to be pushed off. Like I said all the other competitors are still in infancy, but they are showing good signs for quick maturation. For Android there is already a robust API it just needs better hardware. Palm Pre could shake up the industry, but as of yet hasn’t launched, and will likely face problems being tethered to Sprint. The Storm with all of its hardware advantages loses on apps and development platform. These are the same problems Apple faced and overcame. They may have made it look easy, but soon enough competitors will figure things out. Just give them time. Apple may not need to launch a hot new iPhone this time around, but they better have something good coming or else they may find themselves mediocre, compared to the competition, in the not so distant future.

This is why I am so optimistic. There are so many uses for smart phones. I don’t know that I could ever go back, but I am not sold on Apple or the iPhone. Right now I think I purchased the best there is, but the horizon looks good for some serious competition once it is time to upgrade.

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4 Comments on “Should Apple worry about iPhone competition?”

  1. bfpower Says:

    I’m not sure the competition is aimed at Apple… Here’s an interesting take on that I found this morning: http://blogs.zdnet.com/BTL/?p=19383

  2. mrosedale Says:

    Interesting article. Thanks for sharing. I see the authors point. RIM still owns the email centric people and Apple’s iPhone can’t compete directly. I do tons of email on my iPhone, but I wouldn’t type long messages on a soft keyboard. But Apple can compete in the business world. I know my company is all about Apple, but the iPhone does support Exchange, enteprise WPA2, PPTP VPN. Those are essentials that helped the iPhone “grow up” so to speak. So I can literally do all of my business on the iPhone. Also the iPhone does all that without needing a separate email server (*cough* RIM). Where RIM wins is in the keyboard and perception. But Pre is probably better aimed at that market. I think in time the Pre will be able to compete if they can keep the same buzz and get some apps flowing.

    My favorite thing about my iPhone is that it can do business but is also a lot of fun! 🙂

  3. bfpower Says:

    I do think iPhone is on the way up. They’ve implemented encryption and Exchange support, which of course were the major issues with enterprise + iPhone. I’m interested to see where it goes. And I’m definitely interested in the Pre. I don’t think it will make as big a splash as it’s capable of. I’m not sure why, whether it be marketing or lack of market share or what. But I’d love to try one out.

  4. mrosedale Says:

    I am with you there. I would love to test out a Pre. I’ve done some testing with G1, but very little.

    I think Pre will come into its own eventually, especially if it gets on other networks. To be honest I didn’t understand why anyone lined up for the first iPhone. It was sad and certainly not worth the hype, but by the time the second generation came out both the hardware and the software was worthy of the attention. I think the Pre just needs some time in the market before people are comfortable with it, but I am confident that next year or so it will be a viable solution.


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