Verizon: Apple's iPhone made us think different about mobile apps, data

Posted:
in iPhone edited January 2014
Years after Verizon Wireless shunned Apple's iPhone because it wanted more control over the device, a company representative has acknowledged that the iPhone App Store was a "watershed" event in the mobile industry.



At the January 2007 introduction of the original iPhone, Verizon executive Jim Gerace told USA Today that his company has passed up the opportunity to parter with Apple because the two companies could not agree on a variety of issues.



At stake in the negotiations were retail distribution issues (Apple initially didn't want to sell the iPhone through WalMart and Best Buy), customer support handling (Apple wanted to support device issues through AppleCare), and the reinstallation of Verizon software and store elements.



Verizon had already been operating its "GetItNow" store as a way to sell its wireless subscribers ringtones and rental apps, most of which were built using Qualcomm's BREW, a proprietary mobile development platform cousin of JavaME. Apple had no interest in supporting BREW or Java on the iPhone.



Apple also wanted to integrate the iPhone with its iTunes Store just as it had with the iPod, and arguably intended from the beginning to launch its own App Store of software as well, although many pundits insist that the company didn't even conceive the concept of third party software until shortly before the launch of iPhone 2.0, as if the entire iOS software platform were simply a reaction to developers' lack of enthusiasm for web apps.



In the three years since the iPhone's launch--and two years after the unveiling of the iPhone App Store--Verizon is now admitting that it misjudged the opportunity it had passed up with Apple. In April, Verizon's chief executive Ivan Seidenberg said he informed Apple that his company would like to carry the iPhone, and alluded to talk that Apple was working on a handset compatible with the carrier's network technology.



Verizon is now admitting that Apple's entry into the mobile phone market has indelibly rewritten the rules of the cellular phone industry in such a way that has even forced carriers who don't sell the iPhone to think differently about how they accommodate independent software stores and how they sell and allocate data services.



Verizon embraces mobile apps



This week, Verizon business development executive director Jennifer Byrne told the audience at the PaidContent Mobile conference that "while we may have had the first app store, GetItNow, we?ve learned a lot, with the watershed being the iPhone. It?s a drastic change from the walled garden stage to the open approach. It?s been a very big shift.?



Byrne said Verizon has "embraced" the idea of a software app store operating independently of the mobile carrier, using "walled garden" language to describe her own company's GetItNow store in contrast to the "open approach" of Apple's App Store. That's an interesting perspective given that Apple's critics often refer to the iPhone App Store as being a "walled garden" because of the curation Apple imposes.



Verizon now supports both RIM's BlackBerry AppWorld and Google's Android Market. "We?ve seen a tremendous response, so it's validated the decision," Byrne said. That shift will no doubt make it easier for Apple and Verizon to come to agreement on future iOS devices, something that has been long been rumored to be imminent but which has not yet officially developed beyond the stage of speculation.



On page 2 of 2: Verizon, Goole look toward toward the web while Apple plans for a native app future.



Verizon, Google look toward the web while Apple plans for a native app future



At the same time, Verizon also agrees with Google's outlook that native apps will eventually give way to web apps. Google employees have noted that the company sees its Android apps as a temporary platform that will eventually make way for web apps as soon as browser technology improves enough.



That's key to the company's Chrome OS, where apps are entirely web-based, built entirely from HTML5, JavaScript and CSS web standards rather than in Android's Java-like runtime, native Linux apps, or another runtime like Windows Phone 7's Silverlight. Google has supported the idea of running Adobe Flash content within ChromeOS however, largely in reaction to Apple's refusal to support Flash within iOS.



Byrne echoed the same sentiment on web apps, adding, "the real tipping point for [mobile web apps running in] the browser will be 4G because it will literally be your computer in your pocket [?] quasi-instantaneous. That?ll be the point we see even more activity on the browser side.?



In contrast, Apple's pioneering lead in Cocoa Touch native apps for iOS devices is being pursued as a long term platform, and shows no intention of being a temporary effort designed to last just until HTML5 web browsers become more widely established. Apple already supports a leading implementation of HTML5 in its iOS Safari browser, and has rolled out tools and specifications designed to help developer create native-looking mobile apps for the iPhone, iPad and Mac.



However, Apple's own flagship web app suite in MobileMe isn't even accessible from its iOS devices. Instead, the company has bundled native iOS apps that handle MobileMe mail, contacts, and calendars, as well creating new native apps for MobileMe's iDisk, Gallery, and Find My iPhone location and remote management features. Apple's position on web apps has been one of providing additional mobility and convenience rather than replacing desktop apps with web alternatives.



Apple's iLife and iWork desktop apps for the Mac are supported in part by web services within MobileMe and iWork.com. In contrast, Google's Docs, Maps, and other apps are almost entirely web-based. Even where Apple accesses Google's web services, it has done so using native iOS apps, including Maps, YouTube, and integrated Safari search.



Verizon now feeling the heat of smartphone data users



Verizon is also discovering the far greater demand that sophisticated smartphones with functional web browsers and video streaming services will exact on the network. Byrne told the audience "On [the new Android-based Motorola] Droid X, we?re seeing something like 5x the data usage of any other device."



As Verizon begins to accumulate more sophisticated smartphone users that do more than just text message (as its RIM BlackBerry and Windows Mobile users have been largely limited to doing by their poor browsers and limited media features), the carrier will likely pursue the same limited data service tiers that AT&T began and that most international carriers enact. Additionally, Verizon may have to scale back some of its more valuable and attractive services such as tethering and WiFi hotspot features.



Apple pioneered heavy mobile data use on the iPhone, pushing AT&T to offer unlimited data services to users and making WiFi standard at a time when most carriers forbid phone makers from including non-mobile data access. Prior to the iPhone's launch, few Verizon phones were allowed to offer WiFi features. Apple also pushed free Internet standards, such as email with rich attachments, ahead of mobile industry SMS and MMS messaging services on the iPhone.



When Apple finally did add MMS services to iOS 3.0, AT&T initially balked to support the new service for months, complaining that it didn't think it could accommodate the vast demand it anticipated from iPhone users.
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Comments

  • Reply 1 of 105
    hittrj01hittrj01 Posts: 753member
    I wonder, will people try to burn down Verizon Wireless when they switch to tiered data plans like they did with AT&T, or will they blindly continue to assume Verizon is perfect because "everyone" says they are, regardless of what works best in THEIR part of the country?
  • Reply 2 of 105
    john.bjohn.b Posts: 2,742member
    Didn't I just read that Verizon is still shoveling trialware apps on their smartphones? (Edit: Yup, via DF: http://www.wired.com/gadgetlab/2010/...ndroid-phones/ and http://consumerist.com/2010/05/veriz...bloatware.html)



    Let's not be too quick to give them credit for seeing the light; after all, Verizon is still the preeminent nickle-and-dime-them-to-death vendor in the modern age.
  • Reply 3 of 105
    ihxoihxo Posts: 567member
    Quote:
    Originally Posted by hittrj01 View Post


    I wonder, will people try to burn down Verizon Wireless when they switch to tiered data plans like they did with AT&T, or will they blindly continue to assume Verizon is perfect because "everyone" says they are, regardless of what works best in THEIR part of the country?



    They'll probably be angry at Verizon for a few hours, then divert their anger to AT&T. Eventually they'll blame it on Apple.
  • Reply 4 of 105
    daharderdaharder Posts: 1,580member
    Verizon is doing little more than stating the obvious, and though Apple did make the 'apps store' paradigm well known/more popular, WinMo/Palm had theirs many years prior, so the groundwork had already been laid.



    Good on Apple for 'polishing' things up for the average consumer.
  • Reply 5 of 105
    cgc0202cgc0202 Posts: 624member
    Quote:
    Originally Posted by DaHarder View Post


    Verizon is doing little more than stating the obvious, and though Apple did make the 'apps store' paradigm well known/more popular, WinMo/Palm had theirs many years prior, so the groundwork had already been laid.



    Good on Apple for 'polishing' things up for the average consumer.



    Assuming your perspective is correct: How come we are not using the mobile devices that were pioneered by Palm or the one shown by Bill Gates, many years ago?



    Did they also lay the groundwork for devices that led to the iPhone?



    Why did it take an iPod to popularize digital music? Why did it take an iPhone to shake the phone industry? Why did it take an iPad to catch the interest of consumers?



    Is there any reason why other companies have to emulate Apple if other companies did lay the groundwork?



    To borrow your terms, why did the average consumer turn to the "polished" products of Apple rather than stick with those you deemed to be the pioneers that laid the groundwork?



    Why would the "average consumer" even buy the expensive products of Apple? Simply because they are "polished" like a :"faux diamond"? Really stuoid idiotic "average consumers"!



    And they are ALL so filthy rich, they can't help themselves but pay for all those overpriced Apple products.



    Can you cite innovations that were initiated by Microsoft that became game changers beyond desktop computing?



    CGC
  • Reply 6 of 105
    shawnbshawnb Posts: 155member
    Kiss and make up already!! There are millions waiting for the iPhone "4v"...
  • Reply 7 of 105
    hittrj01hittrj01 Posts: 753member
    Quote:
    Originally Posted by ihxo View Post


    They'll probably be angry at Verizon for a few hours, then divert their anger to AT&T. Eventually they'll blame it on Apple.



    LOL, too true. I guess that's the price Apple pays for innovating and dragging these companies with them kicking and screaming.
  • Reply 8 of 105
    shadashshadash Posts: 470member
    Can't speak for all Android phones, but my Incredible came with crapware mainly from HTC as far as I can tell. The Verizon crap that Daniel talks about here are on the Android store through a special Verizon storefront, but didn't come preinstalled. Either way, not a good sign for the future of Android unless Google exerts more control (don't see how they can apart from offering their own phone, which proved to be a failure). Would this open the door for Microsoft to provide a middle ground between the laissez-faire Google and the draconian (at least according to its critics) Apple? Time will tell.



    Quote:
    Originally Posted by John.B View Post


    Didn't I just read that Verizon is still shoveling trialware apps on their smartphones? (Edit: Yup, via DF: http://www.wired.com/gadgetlab/2010/...ndroid-phones/ and http://consumerist.com/2010/05/veriz...bloatware.html)



    Let's not be too quick to give them credit for seeing the light; after all, Verizon is still the preeminent nickle-and-dime-them-to-death vendor in the modern age.



  • Reply 9 of 105
    shadashshadash Posts: 470member
    Whether we use an iPhone or not, we have all benefited from Apple's entrance into the marketplace. Hearing this, I am very glad that Apple did not submit to Verizon's demands in 2007.



    Quote:
    Originally Posted by hittrj01 View Post


    LOL, too true. I guess that's the price Apple pays for innovating and dragging these companies with them kicking and screaming.



  • Reply 10 of 105
    MacProMacPro Posts: 19,727member
    What does Steve Jobs create that isn't a watershed in any industry he get's involved with?
  • Reply 11 of 105
    daharderdaharder Posts: 1,580member
    Quote:
    Originally Posted by cgc0202 View Post


    Assuming your perspective is correct? How come we are not using the mobile devices that were pioneered by Palm or the one shown by Bill Gates, many years ago?



    Did they also laid the groundwork for devices that led to the iPhone?



    CGC



    Yes...
  • Reply 12 of 105
    postulantpostulant Posts: 1,272member
    Wait, the App Store is merely a polished WinMo/Palm store?



    As a developer and a consumer, I wholeheartedly disagree. The App store is a complete paradigm shift as are the devices with access to it.
  • Reply 13 of 105
    eriamjheriamjh Posts: 1,642member
    Verizon passed up an opportunity to suck ass like AT&T does. The phone companies want to control the hardware and Apple told them "F*ck you, we make the phone do what we want, how we want." In spite of their problems, AT&T still wins, but with a big caveat: poor service ratings that a great phone made up for.



    Verizon is still behind the ball. Apple will likely continue to change the rules for the carriers, but they will resist it only until its success is proven. Just wait and see.
  • Reply 14 of 105
    2010 Verizon = 2007 AT&T



    Verizon's network is about to be tested.



    "Verizon is also discovering the far greater demand that sophisticated smartphones with functional web browsers and video streaming services will exact on the network. Byrne told the audience "On [the new Android-based Motorola] Droid X, we?re seeing something like 5x the data usage of any other device." "
  • Reply 15 of 105
    sevenfeetsevenfeet Posts: 465member
    Were cell phone companies really restricting phones from wi-fi being standard like the article states? My HTC-built 8125 on then-Cingular (now AT&T) had 802.11b wireless in 2005.
  • Reply 16 of 105
    cgc0202cgc0202 Posts: 624member
    Quote:
    Originally Posted by DaHarder View Post




    Quote:

    Originally Posted by cgc0202 View Post

    Assuming your perspective is correct? How come we are not using the mobile devices that were pioneered by Palm or the one shown by Bill Gates, many years ago?



    Did they also laid the groundwork for devices that led to the iPhone?



    CGC



    Yes...



    And the latest evolution, the best that they could come up with, after all those pioneering groundwork was:



    The Kin?





    I bet they are selling like hotcakes???



    Did you get one for yourself?



    CGC
  • Reply 17 of 105
    gregalexandergregalexander Posts: 1,400member
    Quote:
    Originally Posted by AppleInsider View Post


    Verizon now supports both RIM's BlackBerry AppWorld and Google's Android Market. "We’ve seen a tremendous response, so it's validated the decision," Byrne said. That shift will no doubt make it easier for Apple and Verizon to come to agreement on future iOS devices, something that has been long been rumored to be imminent but which has not yet officially developed beyond the stage of speculation.



    I still can't see a CDMA iPhone happening.



    But I can see Apple trying to make an LTE phone (on Verizon) just sold in LTE locations but which roams to T-mobile elsewhere (2G?)



    (edit: better in the T-mobile thread... http://forums.appleinsider.com/showt...83#post1681683)
  • Reply 18 of 105
    old-wizold-wiz Posts: 194member
    They were so adamant that they be able to control the crapware they wanted to put on the phone and Apple was having none of it. They have a crappy "get it now" store which charges you for every damn thing and you can't even put your own music on older phones that hard the hardware for it. I think the carriers make money from the crapware and don't give a rats tushie if the customer is offended.
  • Reply 19 of 105
    Quote:
    Originally Posted by shawnb View Post


    Kiss and make up already!! There are millions waiting for the iPhone "4v"...



    Im so fedup of waiting for the iphone 4 here in Canada
  • Reply 20 of 105
    r00fusr00fus Posts: 245member
    Quote:
    Originally Posted by DaHarder View Post


    Verizon is doing little more than stating the obvious, and though Apple did make the 'apps store' paradigm well known/more popular, WinMo/Palm had theirs many years prior, so the groundwork had already been laid.



    Good on Apple for 'polishing' things up for the average consumer.



    I had (and loved) a Palm Treo 600 for a year and half before getting my first iPhone, so I know what Palm does and no, there was no app store for the Palm, or for WinCE/PocketPC/WinMo.



    Once the App Store debuted, I was... amazed. Apple at once solved:

    * Distribution - providing the infrastructure for download of App

    * Marketing - getting the App visible to the users via search, category, top XX lists or adverts

    * Cash Management - removing the need for paypal or other payment collection nightmares

    * File Management - making it easy for the users

    * Installation - purchase is licensing and installation

    * Upgrade notification - let the users know when v1.1 that fixed the bugs is ready

    * Backups - mirrored the Palm model which was very apt IMHO



    NONE of these existed on my Palm or WinMobile devices (or for that matter, any other mobile either). I'm probably also missing some of the advances they did, but it was amazing. Slam F-ing dunk.
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