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Thread: Apple's iPhone Changes The Stakes, Not The Game
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| Apple's iPhone Changes The Stakes, Not
The Game |

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2007-01-24 13:44:07 |
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Came across this article, at Forrester, which has interesting point --
Apple's iPhone Changes The Stakes, Not The Game
Business View Quick Take, by Charles S. Golvin
"At this week's Macworld, Apple introduced its long-awaited entry into
the mobile phone business: the iPhone. The device unites a full-screen
video iPod, a phone, and Internet applications in a package with a
simple, touchscreen user interface. The iPhone is a more capable video
iPod and provides a huge leap forward in phone usability, though its
function as an Internet device is hampered by the absence of a
high-speed cellular connection. The iPhone will force competing device
makers like Motorola to play catch-up and operators to search for a
response, but the iPhone will not substantially alter the fundamental
structure and challenges of the mobile industry."
And here's the Billion dollar question --
What is "The Game"? Can "design" change the game for cellular phones?
What is needed for iPhone to change the game? What is missing?
Anyone?
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March 22-26, 2007, Las Vegas, NV
www.iasummit.org
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| Re: Apple's iPhone Changes The Stakes,
Not The Game |

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2007-01-24 14:57:30 |
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On Jan 24, 2007, at 11:44 AM, prady wrote:
> Came across this article, at Forrester, which has interesting point --
>
>
> The iPhone will force competing device
> makers like Motorola to play catch-up and operators to search for a
> response, but the iPhone will not substantially alter the fundamental
> structure and challenges of the mobile industry."
>
> And here's the Billion dollar question --
> What is "The Game"? Can "design" change the game for cellular phones?
> What is needed for iPhone to change the game? What is missing?
>
> Anyone?
Always happy to spout off about Apple.
Please note that unlike the Forrester article -- and apparently
everybody else -- I don't think this is going to play out as Apple
vs. other cell phone _manufacturers_. This is going to turn out to be
Apple vs. the cellular telephony _carriers_.
Just as the key to the iPod puzzle is iTunes, the key to the iPhone's
success will be ease of use as a service. The only open question is
whether the people at Cingular ('scuse me -- AT&T) are smart enough
to follow Steve's lead on this.
There's a simple way to handle this. For every article you've ever
read about why Apple is beating the pants off of their competition
with the iPod, 'even though the iPod costs too much and doesn't have
Features X through ZZ', substitute 'iPhone' for 'iPod'. Then
substitute the names of Apple's competition in the phone arena for
the names of their competition in MP3 players.
Alternatively, watch this YouTube video of Steve Jobs talking about
Microsoft, and whenever Steve says the word 'Microsoft', mentally
substitute the name of *your* current cell phone carrier, even if you
are a Cingular subscriber.
- Will
Will Parker
wparker ChannelingDesign.com
"The only people who value your specialist knowledge are the ones who
already have it." - William Tozier
------------
IA Summit 2007: Enriching IA
Rich Information, Rich Interaction, Rich Relationships
March 22-26, 2007, Las Vegas, NV
www.iasummit.org
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| Re: Apple's iPhone Changes The Stakes,
Not The Game |

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2007-01-24 15:22:44 |
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prady:
> "its function as an Internet device is hampered by the absence of a high-speed
> cellular connection"
They should enlarge a photo of this sentence and put it up at Harvard Biz
School for an illustration of cluelessness: Trees. Forest.
> What is "The Game"?
The game is the government sanctioned spectrum allocation which is the
source of carrier revenue. Based on the perception of scarcity, an ever
smaller number of companies own the pipes/tubes/gateways. Thus they can
dictate pricing, design, technology and ultimately usage patterns, in a way
to maximize their revenue. For example, on a two-year data/phone contract
worth $3,000-$4,000, the $200 subsidy the carrier gives to the device
manufacturer is just customer acquisition cost they are happy to pay. The
manufacturers have no control over the operating system their devices run on
or the feature set carriers can dictate, not to say anything about back-end
server/service features. Not unlike the disjointed Microsoft-Wintel
arrangement, this is not fertile ground for innovation.
For the very first time in any significant way, an outsider to the game
comes into the market not only with new hardware but by far the most
sophisticated underlying operating system -- all integrated. And convinces
the biggest carrier in this nation to begin to change its services. That's
huge.
To the extent the iPhone is successful, it ushers in an "appliance" model
into a market now entirely driven by "the assembly of disjointed components"
model. If it succeeds, the doors of hw/sw/service innovations will be kicked
wide open.
> Can "design" change the game for cellular phones?
Design is the *only* thing that can change it.
> What is needed for iPhone to change the game?
The FUD to subside.
> What is missing?
This is just the beginning of a rich product pipeline at Apple. One has to
be blind to not see how unbelievably well Apple handled the birth and
maturity of the iPod line, both in design and business. Nobody else even
comes close to having that experience.
What's really interesting in reading thousands of articles and commentary on
the iPhone is the impatience and frustration of people who say, this is the
perfect product I've been waiting for, I only wish it had this [or the other
feature]. When a product reaches that level of "I've been waiting for this
for so long why can't it be perfect" status and maps so well with pent-up
desire, it changes the game.
Ziya
Nullius in Verba
------------
IA Summit 2007: Enriching IA
Rich Information, Rich Interaction, Rich Relationships
March 22-26, 2007, Las Vegas, NV
www.iasummit.org
-----
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