R.I.P., RIM
[I'd promised I'd start my HD DVD versus Tivo series, but the iPhone SDK announcement is too important to neglect. Watch for the other next week. -- Marc]
Years from now we'll look back on March 6, 2008 as a significant date in computing history. Like January 24, 1984 and June 29, 2007, it's a date when technology leaped ahead. Thursday's announcements might not seem as exciting as new hardware like the Mac and the iPhone, but they actually are far more noteworthy.
Apple did several remarkable things yesterday. Opening up the iPhone to third-party applications was expected and while that's a big deal, what's far more important is what Apple's "iPhone roadmap" tells us about the company's plans for the future.
It's nothing short of world domination.
Forget Bill Gates' wimpy vision of "Microsoft on every desk." Apple is dreaming a Mac in everyone's hand!
It's important to remember that the iPhone is a Mac. The new SDK (Software Development Kit) proves it. Being built upon such a great foundation means that the iPhone truly is limitless. With the right software, the iPhone can do anything.
Originally the iPhone's potential customer base was limited: the device was expensive, requires an AT&T contract, was only sold in the USA, it had limited software, and couldn't interface with corporate network standards. Over the past eight months Apple's been removing those barriers one by one: the price was dropped, it's being sold overseas, and so on. Now comes several new salvos: third party software and full enterprise support.
I don't work in enterprise or care much about it, so I'll let others judge how complete Apple's solution is or isn't; what I find significant is that Apple is, for the first time in their corporate history, embracing enterprise and seeking out a market they normally avoid.
Traditionally Apple hasn't sold much to enterprise. It's not that Macs aren't good for enterprise or Apple hasn't tried; the real problem is that enterprise is generally about high-volume and low price, two things that aren't very Apple-like. But the iPhone puts Apple in a special position. The iPhone is unique. There is no competition. Because of that, Apple can set their own price. And we can see from sales figures that people are willing to pay. People want iPhones and are buying them in droves despite the 1.0 limitations.
By making the iPhone work better with enterprise, Apple is diving into a new market -- a huge market -- and with market domination will come all sorts of additional benefits such as more respect for Macintosh in business and more Mac software.
The iPhone SDK, you see, only runs on Macs. That's right: the only way to develop iPhone apps is with a Mac. Once Windows developers start using Apple's awesome development tools, how do you think they'll feel about going back to ugly Windows? Remember, because the iPhone is OS X and the SDK is similar to programming on the Mac, these developers will probably find it easy to whip out a few Mac desktop applications while they're in with their feet wet. And when they see they can make lots of money with Mac apps, they'll want to make more. That's a huge win for Apple.
Another fascinating thing about yesterday's SDK announcement was the emphasis on games. Yes, that's right, games. Another entire market Apple has virtually ignored. If you thought Gameboys and PSPs were hot, just wait until cool games start showing up on the iPhone. Not only is the iPhone ideal for games with its OS X graphics core, high-resolution screen, and built-in networking, but it also has a unique user-interface: a touch screen and motion-sensors. That's bringing a lot of comparison to the WII and the potential for revolutionary new games. Those games won't be playable on other devices, either, since they probably won't have the hardware and definitely won't have the software. If games hit it big on the iPhone, that's going to be a monster coup for Apple. As a long-time Mac user, the idea that a Mac platform might have the hottest games is incredibly cool and refreshing. I can't wait!
This brings up another critical aspect of iPhone development that's going to change computing forever. Unlike desktop computing, where anyone can install anything, the iPhone is going to be a controlled environment. It needs to be simply because it's a networking device, but it's also in Apple's -- and hopefully us users -- best interest. Instead of the madhouse of today's computers, where programs run simultaneously and trample over each other and leave the system unstable, the iPhone will be a restricted environment where everything just works. While we'll have to give up a little freedom to get that utopia, for most of us it will be worth it.
I suspect there will be some grumbling and a few radicals protesting, but I also predict that once people get used to this new way of computing, they won't want to go back and that the wild west of desktop computers will seem hilarious antiquated and insecure.
What intrigues me the most about this new way of computing is not that Apple's going to have to authorize applications -- but the way those apps will be distributed. Many had suspected third party apps would be installed via iTunes, the way it handles iPod games, but Apple's done one better with a wireless application store.
>From the user's perspective, this is incredibly convenient. You can purchase and install new applications from anywhere, at any time. And it's easy, just like buying a song from iTunes.
>From the developer's perspective, this is equally convenient. There's one huge exclusive store for all iPhone applications. Customers can buy your app with a finger tap -- no need for a credit card or other hassle. Apple handles all the hard work: payment processing, downloading and installing the app, etc. Developers can concentrate on developing and let Apple handle the rest. How cool is that?
Unlike the madhouse that is desktop computing where something as simple as installing a new app can be incredibly complicated (Is it an installer or a .dmg disk image? If I overwrite the old version will I lose information? How do I pay for the app or turn the demo into the real thing?), with the iPhone installing and purchasing will be ridiculously simple.
I predict that this ease of purchase will increase sales of software so dramatically that developers will be crawling over each other to produce iPhone apps. Watch for some fantastic success stories in the near future about literal overnight millionaires. Release an iPhone app and anyone with an iPhone anywhere in the world is a potential customer. And not just iPhone -- iPod Touches as well!
This ease of purchase is going to make many wonder why there isn't a similar app store on the desktop -- and maybe it'll provoke someone to create it.
Apple takes a juicy 30% cut of the sales price for this service, but that's trivial compared to the benefits: global exposure, transparent purchasing, no hosting or bandwidth fees, and not even a minimum charge, like with credit card processing fees. It's steep for expensive apps, but I suspect there won't be that many of those: the vast majority of iPhone apps will be single-purpose gadgets, utilities, games, and small data managers. If these apps are priced cheaply, they should sell in giant numbers as impulse purchases. If an app's just a few dollars, why not click it and try it? Apple could be bridging the path to micropayments that actually work.
As for the SDK itself, I'll write more about it in the future. For now, I think it's fascinating that Apple's is moving into the enterprise, embracing games, and gradually fixing every iPhone complaint. The future looks bright indeed, though if I worked for RIM I'd start revising my resume.
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