Monday, October 17, 2011

It's Crunch Time For Apple and the Future of iPhone

The untimely and tragic passing of Steve Jobs has left just about every pundit in the industry and indeed just about every reporter and commentator in the media wondering about how the future of iPhone and Apple will be affected.  While I agree that there is definitely a large looming question created by Steve's passing, some other indicators have me wondering: are we witnessing the beginning of a major shift in the smartphone market from hardware to software?


As new iPhones have arrived there's been a steady increase in quality, features, style, and power.  I've had just about every iPhone from the very beginning and have upgraded steadily. Before every launch, just as other pundits did, I managed to guess correctly to a certain extent what the next iPhone would have. At the very least, I could guess at around 30-50% of the improvements that would be forthcoming. That changed with the last release of the iPhone 5 iPhone 4S.

As hard as I tried beforehand, I had a very hard time guessing what the next over-hyped keynote would tout.  The only thing I knew without a doubt was that it would have (obviously) a better camera, and possibly LTE support and possibly a larger screen.  Of all, the only thing I cared about was the camera.  At 8 megapixels I felt I could use my (future) iPhone as my main camera. My mobile speeds on AT&T are fine for just about everything I use.  I don't want a bigger screen; I like the current size for it's balance of comfort in holding and typing versus overall size. I know that Jobs and the company in general have been said to "tell us about things we wanted before we knew we wanted them." Still, I've approached every past keynote with a list of wants. Not so this time around.

For me, the greatest shock at the keynote and even more so afterwards was the fact that Siri, the iPhone's new voice-controlled assistant was fueling the superiority of the iPhone 4S and its sales. Just about every reviewer was gushing over Siri, and I'll admit I was too (even though I've been using Siri, albeit in an earlier inferior form for over a year.)  I was shocked that reviewers and Apple itself could justify the "upgrade" based (almost) entirely on a piece of software that they themselves purchased (and improved on of course.)  My shock was intensified as I read that hackers already ported Siri to the iPhone 4, and that it worked perfectly so far (pending bypassing Apple's authentication measures.) In reality, if Siri was offered as an app for existing iPhones as well as the 4s, undoubtedly the sales would have been much, much lower.

So it comes down to a simple question. Have we reached a point in mobile smartphone computing where the only major innovations will come from software? I mean sure, we can talk about laser keyboards, holograms and the other fun stuff not coming anytime soon. In reality, what are we really looking for, waiting for, hoping for, or most importantly, willing to shell out more cash for?


Ultimately  what is most striking is the fact that Apple based its future for this iPhone against its rivals, on a piece of software. Software.  Something that Google (and Microsoft!) have a wee bit of experience with. 


As Android makers play catch-up with iPhone's hardware specs and features you can bet that Google and Microsoft are reworking to improve their software and present some innovative software features of their own.  And if a software feature can be so "killer" that it drives massive sales, are we witnessing a colossal shift in the balance of power for the mobile smartphone market? To a certain degree I agree with the Steve Jobs credo that control of hardware and software by the same developer/company provides for a superior user experience. But when the hardware innovation peters out, how long will I be able to hold out from buying an Android device when faced with the myriad of (lower cost) options, with a (potential future) "killer" software feature?

[Of course, I've conspicuously left out iPad, and the role of tablets in smartphone sales, as it is beyond the scope of this writing.]

The ultimate question is: if the fight for mobile smartphone domination has shifted to the software playing field, how will Apple perform and what will be its staying power against software giants Google and Microsoft?

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