Posts by Michael Gartenberg from July 11, 2008

Michael Gartenberg | July 11, 2008, 07:24 AM
iPhone 3G and 2.0 Upgrade - First Thoughts

On schedule, Apple released the new iPhone 3G today and the new iPhone and iPod Touch 2,0 software update. I've spent some hands on time and here are some quick thoughts. More over the weekend. First, the hardware. The new iPhone 3G hardware is very nice, similar to the original perhaps a tad thicker but overall, has great hand feel. The metal back has been replaced by plastic but feels good and should wear just fine. 3G speeds are nice and impressive and the GPS features work well where I am here in North Jersey. Sound is fantastic and noticeably better than the first generation of devices and in general is among the best sounding phones on the market. It’s too early for me to talk battery life but it looks like it passes my personal battery test, can I make it through a very busy day of phone calls and data access without a recharge. It underscores the problem with phones, as they increase features and those features become usable, we will use them more and that will affect battery life. Earlier advanced phones features were so bad that they didn’t get used much. Start using your phone a lot for 3G access, phone calls and media playing and it’s going to be a challenge to make the battery last as long as you’d like.

The new hardware though is only part of the story and frankly the least interesting part I think. It’s evolutionary and not revolutionary (as it should be) The real magic is in the new software that’s available on the 3G as well as first generation devices (As well as the iPod Touch). That’s because the iPhone is a now a bona fide software platform. I’ve talked in the past how everyone wants to be a platform, because platforms are powerful, they generate revenue. But there's a natural catch-22 to platforms. Developers typically are not interested in developing until there's a solid base (like a million + units) and device companies can't get that base without third party apps. Apple has now broken this logjam, giving a real user base of millions of devices to developers and developers have delivered rather nicely. Here's my take on the new software features.

1. Exchange support – As I've talked about before here Exchange support is super important for Apple. Yes, the iPhone is already a business device (if the CEO has one, it's de-facto a business device) but Exchange support will now make it much easier for Apple to get the iPhone into business users hands. Exchange works exactly as it should and I had no problems syncing my information to the device. For folks dependent on Exchange for their information, the iPhone is now a first class corporate citizen. IT managers can now also remotely configure and control iPhones on their networks, which is super important to those folks. Look for the iPhone to make new inroads into the Enterprise and for the iPhone to act as a Trojan horse for other Apple devices and services. IT departments of the world, you have been warned, beware geeks bearing gifts :).

2. The Applications Store. The iPhone is now a software platform, with thousands of developers and a large VC funding the eco system who delivered more than 500 apps for launch. The key to iPhone was always Apple's ability to bringing the advanced functions to the mass market. The App store now extends to developers the ability to add even more to what the iPhone can do. That's a big win for Apple, developers and iPhone users alike. Initial apps in the store look excellent and I'll be writing more about some of the ones I'm using once I've had a chance to give them a real workout. I can't wait to see what comes next when developers really start learning how to unleash the most from the platform. It will also be interesting to see how corp developers take to the platform for line of business apps.

3. Mobile.Me – It’s almost gotten lost in all the news of the week but it’s an important part of the story. It means that consumers can now simply sync their important information across multiple screens and devices. Add in the ability for things like photo sharing and you’ve got a very nice story about contextual flow. If you’re not an Exchange user, this is a no brainer.

Bottom line? The iPhone 3G more than makes up for my issues with the platform. Yes, it would be nice to see a removable battery but I’ve learned to live with sealed batteries over years of iPod use. Yes, some more BT profiles would be nice, but how many of you use BT audio for anything other than hands-free? (although Acrua now offers BT audio as on their TSX and it’s pretty cool but they also offer USB and iPod integration) And come on, cut and paste? How hard could that be (although it took MSFT three generations to get it into their smartphone version of Windows Mobile).

The reality is Apple is now firmly established as a major player in the mobile space with a powerful combination of platform, services and devices with a solid foundation for future growth and adoption.