eWeek: Apple iPhone fallout: ‘They must be crying in Nokia-ville and other telephony towns today’

“In his January 9 keynote address before the Macworld Expo crowd in San Francisco, Apple CEO Steve Jobs offered what has become an annual lesson in user values in technology design,” David Morgenstern writes for eWeek. “But why do so few in the industry seem to be taking the course?”

Morgenstern writes, “That is the great mystery. Often it’s easy to dismiss the power of integration, whether it’s hardware and software or software and services. Or with Apple’s iPhone, something of all three.”

“The device rang my bell in the cool department. With the full browser implementation, it’s almost like a tablet PC but smaller and with telephony. As Jobs said, most smart phones aren’t very smart. The iPhone’s IQ must be off the scale,” Morgenstern writes.

Morgenstern writes, “They must be crying in Nokia-ville and other telephony towns today. Apple’s team in Cupertino has stopped the market with this product.”

Full article here.

MacDailyNews Take: It’s not a complex formula, but it’s obviously very difficult to concoct: Apple is a group of very smart, talented people who are paying fanatical attention to detail, being driven by a visionary, charismatic leader.

As we said yesterday, Apple’s competitors should be embarrassed – their products look dated and amateurish next to Apple’s iPhone – which looks like it slipped off the side of the saucer and was mistakenly left behind by alien visitors. Apple’s so-called competitors have been leapfrogged by a wide margin. They should be crying.

Related articles:
Top 10 things to love and top 10 things to hate about the Apple iPhone – January 10, 2007
How Apple kept the iPhone top secret for 30 months – January 10, 2007
Hands-on with Apple’s iPhone – January 10, 2007
The only thing really wrong with Apple’s iPhone is its name – January 09, 2007
Is Apple building ‘The Device?’ [revisited] – January 09, 2007
Analyst Bajarin: Apple’s iPhone and Apple TV are industry game changers – January 09, 2007
Time: ‘iPhone could crush cell phone market pitilessly beneath the weight of its own superiority’ – January 09, 2007
Analyst: Apple iPhone should be given its own category – ‘brilliantphone’ – January 09, 2007
Cingular to use Synchronoss Technologies’ platform for Apple iPhone – January 09, 2007
iPhone photos from Apple’s Macworld Expo booth – January 09, 2007
Enderle: Apple’s iPhone is going to do very well – January 09, 2007
Apple debuts iPhone: touchscreen mobile phone + widescreen iPod + Internet communicator – January 09, 2007

41 Comments

  1. And over at Dell, Sony, HP and, most of all MSoft, they are all giving each other High Fives that Steve has left the computer business.

    For Schiller to come out and reassure us otherwise is PROOF POSITIVE that Apple’s exit from the computer hardware and software business is a done deal!

  2. It is pretty simple why most companies do no follow this formula: they do not give even the tiniest little rat’s ass about the consumer, other than determining how much they are willing to pay. Most companies only worry about how a feature can make them money. Sure, Apple is all about money, too. However, they realize that by designing and producing hardware n software combos that give consumers what they want, they will make money. Apple spends time thinking about why to add features and therefore understands how to implement them. Other companies tack on an FM tuner and call it value.

  3. Oh Yeah, and This Too – you just go ahead and go back to your looney room and rock yourself back and forth in your delusion.

    Meanwhile, the rest of us in the real world will be welcoming millions of new Mac users because for all the talk of how the iPod would destroy the Mac business and now all the talk now of how the iPhone will destroy the Mac (again), quite the opposite seems to be happening.

    FYI, Apple sold more than 6 million Macs in 2006, which is something like 3 million more than they sold in 2001 when the iPod first came out.

    Fortunately for Apple, it’s competitors and detractors have an IQ level where they constantly misinterpret things like the name change, where somehow only a company named “Apple Computers, Inc.” can make and sell Macs whle a company named “Apple, Inc” cannot make and sell Macs. To Apple, it must seem like watching a bunch of cows lining up single file to the slaughter house – cows who think they are about to get a nice treat because why else would there be a line?

    The Mac is back, baby, and it’s back bigger than ever. Apple’s on course to sell 8-9 million Macs this year, and now we essentially have a Newtonized version of Mac OS X in the iPhone.

  4. The Mac accounts for what, 60% of Apple’s revenue?? And they are getting rid of it?
    ………right.

    Can you imagine what would happen to the share price if they threw away the profit that the Mac brings in.
    Anyone who thinks they are leaving the computer business is a straight-up moron.

  5. God, CNET is lame. How can you review a product without USING it? It’s not even out yet. They haven’t tried it, or the software.

    “It’s tough to truly evaluate the iPhone’s capability as a music and video player without some hands-on experience” yet, they proceed to do so.

    “Journalism” at it’s finest.

    MDNews Magic Word: “Pay” as in these two assclowns need to have their pay cut.

  6. The reason no one else can get this is that Apple’s “formula” probably violates most Business School 101 principles:

    – dependence on a charismatic CEO
    – forcing partners to swear to secrecy and punishing them when they blab, and other onerous demands on partners
    – dropping products on the market in “surprise!” announcements with minimal time for an “ecosystem” to be prepped
    – vertical integration (making the hardware and software) instead of specialization
    – basically ignoring the hype generated by competitors and working on their own schedule on what they think they can actually do better and sell a lot of
    – design by inspiration and vision instead of committee and focus group

  7. Oh, right! Apple is getting out of the computer business! The iPhone marks the end of life as we know it. By February, they will have cancelled all their orders for new computers and will spend the rest of the year selling off inventory. Don’t you know that Apple really wants to get out of a growing market. I mean, the whole mindshare, X-serve corporate, embrace and extinguish plan was just so they could give up making computers? Why keep playing the game if you’re winning, right? Geez, you people sound so incredibly stupid.

  8. Thanks Joell for noticing that. Where’s the big uproar that Steve looks fine? Oh wait, we were too busy staring at the iPhone ” width=”19″ height=”19″ alt=”wink” style=”border:0;” /> Thanks BTSOI – agree totally, Apples 1QFY2007 is going to have how much iPhone income – oh yeah ZERO but 2M Macs sold.

    MDN Magic Word ‘value’ – Apple stock was a good value when I bought at $17 (pre-split) ” width=”19″ height=”19″ alt=”wink” style=”border:0;” />

  9. I am so sick of the whiny spastic crybabies that come out of the woodwork after every Apple event. Okay, so there were no Mac-related announcements at MacWorld. That must mean… THERE WILL BE NO NEW MACS THIS YEAR! APPLE IS CANCELLING ALL MACINTOSH DEVELOPMENT!! AAAaaaAAAaaaAAAAGGGGGHHHHHHH!!!

    Or could it possibly be that any such announcements would have been completely lost in the 90 minutes+ presentation of AppleTV and iPhone? Apple doesn’t bother “announcing” new Macs these days, unless it’s a completely new model. When the Mac mini gets Intel Core 2 Duo, I doubt Jobs will go on stage to announce it — there will just be a press release.

    There were no iPod upgrades announced, either. I suppose they’re cancelling the iPod?

  10. Although I think the iPhone is a great piece of innovation, and that it will be quite popular…I would imagine that the majority of the billion phones sold last year were used for basic things like calling and texting.

    I would appreciate Apple eventually coming out with a version of the iPhone without all the bells and whistles. A simple design, with an effective and easy to use interface. Phone calls, texting, contacts…enough said.

    I realize that integration may be the wave of the future, but there is something to be said for the idea of “too much one convenient package”.

    Just my 2 cents.

  11. That’s just it 2nd half.

    Phoning and messaging. The rest of that shit that is in every phone does not get used because no one knows how to use it. Over 30% of phones sold last year had music playing capability. Less than 5% of those music playing phones were actually used to play music.

    Why? It wasn’t because the owners didn’t want to play music. It was because they didn’t know how to use the feature.

    Same goes for in phone cameras. Shitty pictures. Who tries to take more of them after such poor results?

    The features were added to produce a revenue stream for the Telcos.

    Once there is a good implimentation of all of those features built into every phone that is done with the user in mind, those features will be used.

  12. It’s Intel Inside but it’s probably not a Core 2 Duo or even an x86 chip. It runs OS X but it’s not a Mac or is it. It has over 200 patents. It can be made in quantity and go almost anywhere. What some of you fail to see is that Apple isn’t just Macs anymore it’s on the verge of becoming ubiguitous.

  13. You can all feel free to flame me for this one, but I really don’t see how the iPhone is so earthshattering “They must be crying in Nokia-ville (as someone else mentioned Finland). Now, i’m not saying the iPhone doesn’t look nice, it looks amazing. But unless you compare it to the fact that other big-tech companies in direct competition with apple (HP, Dell, M$, Gateway, etc) don’t have an equivilant to this, it’s not really all that amazing aside from the utter fact that it’s made/designed by apple, the GUI is nice, and it runs OS X.

    Nokia’s N800 and E62 phones can compete and from what I see the only thing they really lack in comparison to the iPhone is that they can only hold up to half the 4gb min iPhone can. I think apple makes great products, and I have no doubts that the iPhone will be a great product as well, but I fail to see how this is so “WOW NOBODY HAS ANYTHING LIKE THAT!” when there are clearly products and can and will compete against the iPhone; they just don’t run OS X and have nearly as much storage capacity. The iPhone will definately get competition if Nokia releases the N770 and N800 to more than just cingular.

    if anyone’s wondering why I didn’t mention Motorola, it’s because i don’t think they make good stuff at all, sorry for those of you who do.

  14. Stephen, right on.

    Since the iPhone UI is on top of Mac OS X, it can’t be a huge jump to move it onto a Mac, can it? That multi-touch stuff should be appearing in some Mac, maybe enabled in Leopard, but definitely no later than 10.6. Imagine how Time Machine would work with a multi-touch screen.

    The odds of a smaller form factor Mac just went up tremendously! Maybe someone in the business can estimate how much it would cost to put all those touch sensors under a 10″, 12″ or 15″ display?

  15. It’s not that the “GUI is nice and it runs OS X”.

    It’s that Apple just put forth a new, and revolutionary, UI for any device. Like the mouse. Like the click wheel.

    Think of all the devices you have that used to just have buttons but now have a small display and predefined buttons. (Or even worse, overloaded buttons, you know, Ctl-x, Opt-Ctl-x, Opt-Shift-Ctl-x). Apple just got rid of all the buttons.

    And yes there has been touch interfaces. But has there been products utilizing pinch and swipe and …

    That’s the difference. See the future.

  16. People who think the name change to Apple Inc. is the doom of the Macintosh end of the business are sorely lacking in intelligence and common sense. Apple is going to change the cell phone business with the iPhone, just like they changed the music business with the iPod.

    Get a grip people (who bitch about Apple after an event like this)! The Mac isn’t going anywhere but up!

  17. The next generation of Macs will ship without a mouse. Your finger will do the walking across your huge iMac screen.

    The spin off products from this technology will be fascinating to see and use.

    Go Go Apple Gadget Go!

    i see touch screen iPods, laptops, iMacs and cinema screen Mac Pro’s maybe even bigger screens with the Apple logo on them and all touch me baby screens. WOW!

    Bring them on.

  18. Data plan from Cingular will cost $45 ON TOP of your cell plan with current pricing. $600 for the phone and another $45 to use all the bells and whistles.

    Unbelievably cool phone that ot enough people will buy….can you say “Cube”?

  19. Remember those articles claiming that Nokia, Motorola, Samsung … all were hoping that Apple would enter the market and shatter the telco’s business models, so that the cell phone makers could really sell all of their neat features? They should have read the old adage that you should be careful what you wish for — the wish might be granted.

    Apple is going to clean the clocks of their cell phone competitors. Their patent protected innovations and OS X most of all put Apple’s iPhone way ahead of anything the other guys will be able to produce for many years. It’s game over.

  20. The article also talked about Apple partnering with Google and Yahoo. So the big club of the companies that Microsoft is trying to screw are working together to counter-screw Microsoft. What is particularly hilarious was Bill Gates claim on Monday at the CES that Apple had problems partnering with others. Amazing! Play For Sure is widely known as Screwed For Sure. Microsoft has the reputation of rarely failing to knife its “partners” in the back. Apple now has the most powerful alliance in the high tech industry in a win/win/win partnership and the non club competitors are going to lose big time.

  21. Up in a very cold part of the world, a group of executives sit around a long table, groaning at last night’s alcohol-induced headache.

    A red-eyed, portly Scandinavian in an impeccable suit walks in and turns on the projector. “Good morning….”

    “I’ll tell you what happened,” he says, clicking on the first slide. Like magic, the words appear on the screen:

    ” Think Different “

    I might add: And have the force of will to succeed.

  22. I wouldn’t worry about Nokia but if I was Microsoft I would. In US the personal computers rule but in the rest of the world it’s the mobile phones. Nokia is expanding it’s product line towards portable internet devices while Google is developing web based apps, 3G is making connecting faster. Who is not in the picture? Now Apple has jumped on the same boat with the iPhone and they control the hardware the same way Nokia does. In the end the one with the best system integration will win, not the company with the most money and most problems.

  23. “Apple’s iPhone way ahead of anything the other guys will be able to produce for many years. It’s game over.”

    That’s just ignorant. Ever heard about N95?

    http://en.wikipedia.org/wiki/N95

    That’s to be released in 2007/Q1. When was that iPhone launch in Europe again? I bet Nokia execs are screaming in panic now “oh god it’s got that pinch feature patented, sell your stocks now!”

    Granted, the iPhone has a very nice looking and (possibly) usable UI, but that’s about it.

    – no 3 or 3.5G (videocalls anyone? “See what I see feature” etc.)
    – works only in one operators network in the US
    – poor 2Mpix camera with no decent optics
    – no GPS (Google Maps is no navigator)
    – try text messaging (or any other function) with just one hand (i.e. while walking, driving etc.)
    – no Outlook integration (bye bye business customers)

    and the list goes on and on…

    Do you guys honestly think that Nokia, SonyEricsson and all other big players haven’t considered a touchscreen only solution? Could there be a reason why they haven’t released one yet? (i.e. it just doesn’t work in practice)

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