Sunday, July 20, 2008

How important is the iphone?

There has been a lot of hullabaloo about the new apple iphone. The world of technology is full of over the top hype. The Segway is a perfect example. It was claimed that it was going to "Change the world". In reality, it has become a very good niche product for those who can afford it. The palm pilot had its day when everyone wanted an electronic organizer. Today they have been superseded by the blackberry smartphone. However, countless people have abandoned the electronic world and have returned to pen and paper after an unexpected crash erased all of their data. Amazon's Kindle device (an e-book reader connected to a nation-wide wireless network) is another hyped device that claims it will change how people read books forever. The kindle has repeatedly sold out, but I don't know anyone that has one and most people don't even know what it is.

Which brings us back to the iphone. Is the iphone another fad, or is this a product that is here to stay?

Maybe we should look at electronic services/products that have changed the world. The first three that come to my mind are to personal computer, the internet, and the cell phone. The personal computer has allowed individuals and companies to manage an incredible amount of data on a regular basis. The internet has allowed everyone to pass that incredible amounts of data to anyone that wants or need it. There is no question that these two inventions have transformed the world economy.

The cell phone has had just as profound but different effect on the world. There is no question that cell phones have effected business, but the major impact has been on the individual. Most people in the world have no need for a personal computer. I known that sounds ridiculous, but it is true. Only in richest countries in the world do normal people own a computer. Everyone else uses internet cafe's. However, most of the world has a need for a cell phone. We recently passed the 50% mark in worldwide cellphone use. Over half of the world's population has a cell phone. That is very remarkable. Round that to 3 billion and it is easy to see that even 1% market share means 3 million phones. With the stakes that high, the competition will be more fierce than ever, which means that consumers will get better products.

This is where the new and improved iphone comes into the picture. Up till now, phones have thrived on variety. Some basic features are common to most cell phones, but their implementation can be quite different. Every phone essentially had its own operating system. You are lucky if you can move contacts and ringtones over to a new phone, don't even think about software.

What it comes down to is that these phones are accessories to the real package, the network. It is network that allows serious business to take place, not the phone. This is all fine and dandy until someone invents a phone that people actually can do things on. The blackberry was the first phone to really do this, but it was limited. Internet was second class and the variety of software available was limited.

The iphone changes this. Suddenly, the internet is the real internet, and starting in July, developers can make all sorts of software for the iphone. The iphone is no accessory. It has the potential to be the main course, a heavy lifter, dare a say it, an essential tool.

The development of the cell phone is almost the reverse of the personal computer. The personal computer had spreadsheets, games, word processing, and more, but until the internet came along to connect them all, they were of limited interest.

The cell phone has always been on the network, but very limited in what it could do on the network, beside talking, and more recently, texting. The iphone combines a computer, the internet, and the cellphone. It is a platform that can explore the limits of what a pocketable, networked computer can do– and the sky's the limit.

3 comments:

Benjamin said...

Very well said Jason. A lot of other companies have reacted to the iPhone - even more than the iPod did to music players, I think it is changing the market all by itself. Other companies are using touch screens on their cell phones, and adding more advanced features, especially with internet. Time will tell what other features will be added that people will use and pay for.

Angela said...

Hey Jason!

I had seen commercials about the new IPhone but didn't know much about them. I have noticed over the years that things are getting smaller and more portable in order to be more travel friendly. Perhaps this would be an excellent accessory for someone who has to travel alot for business.

Have a blessed week!
Angela

Kate The Great said...

We can see you love this thing, Jason, but the real question is eluded.

The real question, my dear boy, is this: do you have an iPhone?