Jobs: App Store launching with 500 iPhone applications, 25% free
[Thanks, Matt and Chris Z.]
Posts with tag steve jobs
Following a rather bold claim regarding the iPhone's alleged status as O2's fastest selling device in history, the carrier's CEO paid a little visit out to Cupertino last week to brief Steve personally on just how warmly the iPhone has been received across the pond. Chief Executive Matthew Key says that he expects 200,000 iPhones to be sold on his network by the end of January, meeting O2's expectations set prior to its November launch -- despite the fact that analysts are claiming many more could be sold by then (we suppose it's better to underestimate than overestimate). That's not really the big news here, though; Key also told Jobs that his network's iPhone customers are consuming data at a far more aggressive rate than others, with a full 60 percent using 25MB a month or more compared to just 1.8 percent among the general O2 populace. That, of course, is where the real money lies for O2 in this whole exclusive iPhone deal with Apple, since Cupertino is doing a magnificent job of siphoning off virtually any hope of profit from the hardware itself. In other news, Key says he's confident that O2 will snap up the 3G version of the iPhone when it's launched next year -- especially since Vodafone, Orange, and others should be locked out on account of O2's multi-year contract with Apple in the UK.
His Steveness has been served, courtesy of RIM CEO Jim Balsille. The BlackBerry chief has stated that Apple's apparent stinginess in taking every bit of credit for everything iPhone is horning in on AT&T's part in the whole affair. For some reason, Mr. Balsillie seems a bit miffed that the iPhone is free of AT&T's logo and that it has to be activated using Apple's iTunes software. Balsillie added that Apple's "tremendous amount of control" gives him pause as he thinks about how the shifting of control outside the carrier somehow commoditizes the iPhone. We're still waiting on an unsubsidized 8300, okay Jim?
In parallel to his iPhone review, Uncle Walt also published an email conversation he had with Steve Jobs. While most of Jobsie's "we don't talk about future products" responses could have been foretold, one response is worth noting. When asked about the lack of instant messaging, video recording, and real-time GPS navigation, Steve responded with the following: "I will say that the iPhone is the most sophisticated software platform ever created for a mobile device, and that we think software features are where the action will be in the coming years. Stay tuned." Right, software. Remember Apple's promise of free software updates that will "surprise and delight" both Apple TV and iPhone customers? Well, they've already delivered a v1.1 YouTube update for Apple TV and certainly the most notable of missing features -- MMS, iChat, A2DP, text copy and paste, video recording, MP3 (or AAC in the case of Apple) ringtones -- are all software related. Sure, you can't download a 3G or GPS radio, but there's certainly hope of filling the gaps on the software side.
Apple -- not unlike Sony -- occasionally shuns the big industry tradeshows in favor of talking bout its newest wares on its own time in its own venue. Cupertino does that with mastery just about every year (remember the iPod nano hype back in September 2005?), and its latest foray into "see why we are more special" came with the iPhone - Cingular announcement back in January during the heart of the CES tradeshow in Las Vegas. Per protocol, Apple said "bleh" and wanted to get its game on on its own terms, shunning CES for San Francisco's Moscone Center with the world-imploding iPhone announcement that scores of industry watchers had been intently waiting on for years. If there's one thing you have to give Apple credit for, it's marketing finesse and public timing -- not to mention its knack for generating free publicity. For example, Harvard Business School prof David Yoffie now estimates that the iPhone has generated about $400 million in publicity so far -- with none of that cost coming out of Apple's pockets, to boot -- an "unprecedented" level of attention for a new product introduction. We're pretty sure that's exactly what Steve Jobs was looking for.




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