ABI Research: Apple iPhone is no ‘smartphone’

19 years ago

Apple’s iPhone was the talk of the town after its January 9 launch. Industry observers were by and large impressed with the new device, praising its user interface, innovation, and seamless integration. But two senior ABI Research analysts — wireless research director Stuart Carlaw, and principal mobile broadband analyst Philip Solis — point out that while the iPhone is undoubtedly clever and capable, it is not correct to call it a smartphone, as much of the media has done.

ABI Research defines a smartphone as a cellular handset using an open, commercial operating system that supports third party applications. The iPhone runs the Apple Macintosh computer operating system, OS X, so at first glance it would seem to fall into the smartphone category, which might help justify its announced $500+ pricetag. But, says Solis in a press release, “It turns out that this device will be closed to third party applications. Therefore we must conclude at this point that, based on our current definition, the iPhone is not a smartphone: it is a very high-end feature phone.”

Feature phones’ functionality (dictated by the software which controls the hardware) is closed and controlled by an operator or the device manufacturer, whereas smartphones are supported by a third-party ecosystem, where competition in the software space creates applications that add value. “Sure,” concedes Solis, “feature phones have third party applications too – but these are relatively weak and limited applications that work with the middleware such as Java and BREW. Applications designed for smartphones can be written to access core functionality from the OS itself, and are therefore usually more powerful and efficient. The competition in an open environment also yields more cutting edge, rich applications.”

Stuart Carlaw adds, “Consumers will not be willing to settle for a second-rate cell phone just to have superior music. Apple must get the phone engineering part of the equation right, and it is difficult to see how they will accomplish that with no track record in the industry. Even though they are working with some prominent suppliers, the task of putting all of the building blocks together cannot be underestimated.”

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Correct. Apple’s iPhone is not a so-called “smartphone.” It’s much, much more; as Tim Bajarin, principal analyst with Creative Strategies, said of Apple’s iPhone, “This goes beyond smartphones and should be given its own category called ‘brilliant’ phones.” At least initially, iPhone users will get software from just one source. Thankfully, that sole source, Apple Inc., just happens to make the best software in the world. Apple understands very well that too many cooks in the kitchen spoil the broth.

In the future, we expect Apple to follow along the lines of iPod and vet third-party software (ie., games) to ensure the best possible iPhone user experience. When the first iPhone game from Electronic Arts appears for sale on the iTunes Store, will ABI Research then define iPhone as a “smartphone?” As if it matters what ABI Research’s definition happens to be. Apple doesn’t usually conform to someone else’s definitions, they often creates new ones.