Your iPhone is ringing
According to Mike Davidson, the time is right for Apple to turn the smartphone world upside down in the same way it did for music with the iPod. He argues that all the foundations and business models are in place, and that not acting now could spell the end of their successful "digital lifestyle" plans. I agree with a lot of his ideas, but have doubts as to whether Apple is eyeing the phone market. Don't get me wrong, I'd love more than nothing else for my next phone to have the familiar Cupertino trademark, but I see a few problems with this happening.
Apple is notorious for wanting full control over their products. They aren't content with simply making something and then allowing another company to run the universe in which it is used. They pride themselves in providing a complete user experience, from the beginning of the product to its end. Just look at the iPod. Apple could have easily just made this amazing music player and they stayed out of the picture. Instead they develop and launch a music service that complements the player perfectly and sets the standard for the way in which people buy music online. They make it the only service that is compatible with the iPod and close the doors to other online music providers who want to sell music to iPod users. They hold total control of the product and the universe, and it allows for a seamless user experience. I don't see how they could do this for the cellphone market short of becoming a cellular network provider.
Service plans already vary from company to company, service/roaming areas are all different...the cellular network in the US is a fragmented mess. The only way to make one standard would be for Apple to have total control over this universe. They would have to release their phone and then provide the service that it would run on. I can't even imagine the kind of capital this would require and the headache that it would be to make work properly. If there ever was a company to bring something great to the shitty hodgepodge that is currently America's cellular phone providers it would be Apple, but I'll believe it only when I see it.
(link via The Unofficial Apple Weblog)

I totally agree that Apple has a control problem which gets in the way of this scenario, but that is the precise reason why I suggested not going the traditional one-carrier MVNO route, and instead just reselling the data portion of the plan and using all carriers.
Using my Treo has made me realize how little of my user experience actually has much to do with the cell phone service I have. Besides actually having phone conversations (which is very important, of course!), most of my interaction with the device is done offline... an area where Apple would have full control. Additionally, by offering such a device for use with all carriers, Apple could successfully divorce itself from the "coverage quality" side of the equation. As far as they are concerned, use whatever carrier covers your area best.
Also, I agree with you about the iPod, but don't forget that it would be every bit as successful without the iTunes Music Store. The fact is that tons of iPods were sold before the Store even went live, and the majority of music on people's iPods isn't (wink wink) from the store itself.
Posted by: Mike D. | 07/26/2004 at 04:59 PM
Apple's control problem has made me pull my hair out many a times. Mike, I'm hoping that what you've proposed comes to fruition and we all get the device that this company could wow us with.
I'll be the first in line waiting to get my hands on it (that is if you don't beat me to it).
Posted by: Izzy | 07/26/2004 at 05:17 PM
First, I’ll preface this by saying I don’t know much about this topic -- certainly not as much as the two of you. But…
I should think Apple would come out with a Handheld device before they came out with a cell phone. The world needs little Pocket Macs! I know Apple would make the most gorgeous and most functional hand-held. So where is it? I don’t want a Palm Pilot or a Pocket PC – I want a Pocket Mac, dammit. They could call it iPocket or something. It’d be awesome.
Also as an unrelated side note to Izzy – I had a dream the other night that you had an Apple cell phone. Seriously – ask me about it, I even remember what it looked like.
Posted by: Karen | 07/26/2004 at 06:47 PM
I, too, have been baffled by Apple at times. I'm with Karen - I'd love to see an Apple PDA device. Think about it. My iPod is smaller than my Palm, and it holds 40GB worth of information as opposed to the Palm's 56MB. The handwriting recognition element (Inkwell) has been there for a couple of years. It seems like all the factors are in place for them to turn the PDA market on its ear.
Posted by: MarkLee | 07/28/2004 at 09:35 PM