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How To Respond To The iPhone?
from the Insight Community by Rafe Blandford
Other manufacturers will look at the iPhone and note the importance of two things: the user experience given through the user interface and the importance of marketing. The iPhone, outside its creen, has only a mid level specification; the majority of the innovation is in the user interface and software. The wider applicability of this software innovation is open to question. It is too early to evaluate the success or failure of the iPhone user experience model and it is worth noting that several usage scenarios are not handled well by the current implementation (e.g. one handed use, use with gloves, glance lookups). Furthermore such a user interface is not necessarily suited to mass market devices. To a certain extent a touch driven interface dictates a large screen and places limits on both form factors and the minimum size of the device. It is also worth considering how far the current implementation can be extended with new features before it becomes unwieldy to use. Apple has sensibly focused on core features, but in order to be sucessful outside of the US market it will have to extend current features and functionality. Maintaining the same ease of use and Apple ethos will be difficult as Apple moves out of its traditional areas of expertise.
However it is clear that the iPhone will give manufacturers and software providers a reason to reassess their current offerings. Apple has offered alternative directions to investigate and while these may not be new Apple's very use of them legitimises them as areas for further study.
Marketing is perhaps the area that both manufacturers and operators could pay close attention to. Apple has managed to generate a large amount of pre-publicity about the iPhone. While some of this is down to its status as innovative product rational assessment of its competitors would suggest the innovation angle is over exaggerated, there are a variety of devices that can do more. The importance of a loyal community, especially a web-based one has been clearly demonstrated. Numerous blogs, forums postings and mainstream media sites have examined and deconstructed every detail. Apple has also sort to educated potential users about the benefits of the device - something which is rarely seen from other high end phone manufacturers. Even potentially negative areas (such as the lack of true third party developer support) have been spun in a positive way. Of course replicating this marketing juggernaut is extremely difficult, but it is an area that is worth pursuing.
Operators will like the iPhone because of the high level of awareness around it. The awareness of its capabilities will help increase consumer awareness of non-communication features in phones. This should have a beneficial knock on effect on other models. I would expect to see increased sales of high end handsets. This effect will likely be most noticeable in the US where the consumer market (as opposed to enterprise) for high end phones is relatively small.
However operators will also be distinctly unimpressed by the revenue generation prospects of the iPhone for themselves out side of the phone contract. Operators are well aware then revenue from voice and data can only decline and thus are actively seeking other revenue generating areas. With the iPhone these areas are controlled and monopolised by Apple. More over Apple seeks to promote its own branding over that of the operators. Operators will be very wary of becoming nothing more than 'pipe' providers.
Operators seeking to build software software platform strategies and build future growth around ecosystem of mobile companies will also be wary of Apple's desire to control the product end to end. It makes it difficult for anyone other than Apple to innovate and that is very dangerous for the industry as a whole.
However despite all of this it is worth noting that the importance of the iPhone is easily overstated. If it reaches it sales target it will still only represent 1% of phone sales. There will be more successful product out there and though they may not receive the same media attention they are just able (often more so) to add to the bottom line.
Reader Comments (rss)
"only" software
To say that, "the majority of the innovation is in the user interface and software" is to state the profound reason for Apple's success since 1984. And, really since it named itself "Apple" in sharp contrast to the intimidating names most competitors carried with the advent of PCs in the mid to late 70s.
In those 23 years, virtually no competitor has learned the lessons taught by Apple. Or, at least has not had the brilliance to act on those lessons. Namely that how machines make their powers available to people is ultimately the most important thing.
Most electronic devices, from VCRs and cell phones and other consumer electronics through Wintel computers have incredibly lame interfaces. They have always since DOS and do still suck. The inferiority of the bac Mac copy called Windows-- right up through Vista in its lamentable attempt to imitate OSX proves the inadequacy of other manufacturers over and over.
The Japanese are entirely clueless about interface. But, other American manufacturers, even quality companies like HP, are not much better.
That many techies, and all tech builders still think that interface is somehow a frivolous consideration speaks volumes. And maybe reflects the still widespread ignorance (though now much improved) of the power and importance of good design.
Ultimately, it is design that Apple understands better than any other company on the planet. We would all be better off if others caught up, if only just a little.
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