Tuesday, July 03, 2007

Apple's iPhone is a marvel in Business Strategy!




What is Apple doing with iPhone? Lots of fancy footwork and getting away with it! why you say? Read on:

Apple is screwing and manipulating AT&T as they did in the case of the Motorola. Do you remember what Apple did with Motorola (the phone with iTunes built into it)? I have 99% assuredness that is is the same story. Apple got a lot of money to back / pay for the R&D of the iPhone and AT&T got the exclusivity. Apple also needed this backing not just about money but also for the network that they lack and since they new that Singular will buy the AT&T name and merge together, what could be better for them? Money for R&D and once the product was ready a network to support it! Sure - good and dandy for both, right? The answer is no. It is only good for Apple. Since Apple gave a locked iPhone to AT&T. Do you think that Apple is stupid not to understand that any Browser int he word that want to function in the internet must have Plug-ins like and I quote from the same Article:

"The version of Safari running on Apple’s iPhone shows the web without Flash, Windows Media, Real Player, or Java applets. It’s not just a case of few plugins gone missing. Here’s why Apple chose to cut proprietary content from the web, and what it means for Adobe, Sun, Microsoft, Real, and other mobile makers."

\Do you really think that Apple is stupid? All the things that are not supposedly there ARE INDEED there - but deactivated or not completely implemented. All that is left for version 2.0 and the NEXT Highest bidder! LOL! You know Apple - you know that little SOB Hitler! He is sharp and he is a TRUE BUSINESS man! He knows what he is doing. He Successfully R&D an important product for FREE (someone else money) and now will improve the product with the incoming profits of the iPhone 1.0 and will build the iphone 2.0 that then will be sold the the highest bidder or may be Apple will market the 2.0 in 24 months when it's exclusivity with AT&T is ended.

As for the fact that iPhone is closed that you can not devlop for it, is another sign of this matter. Onl;y Apple will decide what goes in it and Also Apple has made the secret deal with AT&T that it will not allow huge bandwidth to be used by the users of iPhone, hence EDGE and not EVDO - Hence great WIFI so the users use their own bandwidth and not AT&T's. Look at how they have closed and locked the damn BlueTooth! You can ot even build a wireless headset for the damn phone! Very very complicated product. I bet the battery makers can nor make replacement batteries for the damn thing.

All shows the Sharpness of Apple Business model! But there is oen case that Apple was wrong about and that is the fact that they omitted Flash! A high percentage of the Webs stuff are running under Flash. But I guess that fell in the domain of bandwidth protection deal that Apple made with AT&T. Flash also, in some cases compete directly with H.264 format of the QuickTime for delivering content. Of course, H.264 is of a very much higher quality than Flash with a heavier use of the bandwidth, but Flash distributes the content much faster and encoding to flash is much faster than to H.264. still, Apple sees that as an indirect competitor and since MacroMedia was bought by Adobe, this makes matters more difficult and makes the competition much more powerful, so Apple will do anything to deal with it, including locking them out of one of the most important items to hit the market like iPhone! Apple is following MS Standard! This is the same strategy that MS followed for killing Java when Sun refused to give them what they wanted.

There are other mitigating circumstances: Apple now is competing not only with MS ont he Deaktop, but with their entry to the world of Cell phones, they are also competing with MS Mobile 5.0-6.0 as well Symbian and Nokia Open and now enters the LUNIX based Smart Phones. So OS X has a big job ahead of it, and Apple has even a bigger job ahead of itself. One OS, competing with Several on two arenas of Desktop and Smart phones.

But If apple plays it's cards right, AT&T will get fed-up inside the 12-18 months and releases the Exclusivity of the iPhone in US (Rogers in Canada), and you will see that less than 6 months after that, OPEN iPhone 2.0 will hit the market with everything open and usable by any company to develop for it; software or hardware! LoL! This is my prediction.

But as you know, Jobs has something that he is famous for: Unpredictability! We have to wait and see what this little wannabe hitler has in mind and one thing is for sure: He is NO dummy!

Conclusion:
I will not buy an iPhone (as much as I want one and you know it is a long time I wanted one) until the version 2.0. Makes sense? yes? LoL!

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