Apple, Cingular each claim victory, say more iPhones in queue
Apple, Inc. and iPhone partner Cingular last week engaged in a brief war of words over which company forced the other to change its business model, but nevertheless have both promised to collaborate on many more Apple-branded cellphones in the future.
While creating an impression of harmony on the surface, Apple and Cingular executives fueled a minor spat following the launch of iPhone last Tuesday, hinting that a power struggle ensued before the two came to terms on the project.
Igniting the controversy was Apple chief executive Steve Jobs, who told TIME editor Lev Grossman that he had earned "special treatment" from Cingular, forcing a change in the cellular service provider's voicemail system to allow for iPhone's random-access voice message interface. In the same interview, Apple's iPod division headman Tony Fadell added that Cingular "broke all [its] typical process rules" to implement Apple's requests.
Jobs also claimed to have ducked around the arrogance prevalent amongst carriers, which regularly include proprietary applications or force feature changes upon users in order to protect their services. "There's some hubris, where they think they know better," Jobs said. "They dictate what's on the phone. That just wouldn't work for us."
The comments from Jobs triggered a surprisingly sharp rebuttal from Cingular national distribution president Glenn Lurie, who flatly denied that any concessions were made and implied that Jobs' assertions were little more than posturing. "I'm not sure we gave anything," Lurie stated. "I think they bent a lot."
Lurie similarly drew attention to the necessarily exclusive multi-year contract Apple signed with the American cell service that gives iPhone customers the "luxury" of requiring a Cingular subscription. Apple, he added, also agreed to help stop the "bad guys" who would unofficially unlock the iPhone or its SIM card for use on competing networks.
In spite of the apparent rift between the two companies, the Cingular exec was quick to make amends and hinted that the depth of the Apple-Cingular partnership would become clear soon. Several new Apple-branded phones may be "coming out very quickly," he said.
That allusion may help address complaints that iPhone's current limitation to EDGE mobile broadband would curb its appeal in the face of much faster HSDPA (or 3G) access, which Cingular already offers in a few key cities and through rival smartphones such as Samsung's BlackJack.
Jobs himself was already pointing towards future models in his keynote speech at Macworld San Francisco. He mentioned in passing that the company's choice of GSM network support via EDGE would allow it to produce a 3G wireless phone and "many other amazing things" in the near future.
While creating an impression of harmony on the surface, Apple and Cingular executives fueled a minor spat following the launch of iPhone last Tuesday, hinting that a power struggle ensued before the two came to terms on the project.
Igniting the controversy was Apple chief executive Steve Jobs, who told TIME editor Lev Grossman that he had earned "special treatment" from Cingular, forcing a change in the cellular service provider's voicemail system to allow for iPhone's random-access voice message interface. In the same interview, Apple's iPod division headman Tony Fadell added that Cingular "broke all [its] typical process rules" to implement Apple's requests.
Jobs also claimed to have ducked around the arrogance prevalent amongst carriers, which regularly include proprietary applications or force feature changes upon users in order to protect their services. "There's some hubris, where they think they know better," Jobs said. "They dictate what's on the phone. That just wouldn't work for us."
The comments from Jobs triggered a surprisingly sharp rebuttal from Cingular national distribution president Glenn Lurie, who flatly denied that any concessions were made and implied that Jobs' assertions were little more than posturing. "I'm not sure we gave anything," Lurie stated. "I think they bent a lot."
Lurie similarly drew attention to the necessarily exclusive multi-year contract Apple signed with the American cell service that gives iPhone customers the "luxury" of requiring a Cingular subscription. Apple, he added, also agreed to help stop the "bad guys" who would unofficially unlock the iPhone or its SIM card for use on competing networks.
In spite of the apparent rift between the two companies, the Cingular exec was quick to make amends and hinted that the depth of the Apple-Cingular partnership would become clear soon. Several new Apple-branded phones may be "coming out very quickly," he said.
That allusion may help address complaints that iPhone's current limitation to EDGE mobile broadband would curb its appeal in the face of much faster HSDPA (or 3G) access, which Cingular already offers in a few key cities and through rival smartphones such as Samsung's BlackJack.
Jobs himself was already pointing towards future models in his keynote speech at Macworld San Francisco. He mentioned in passing that the company's choice of GSM network support via EDGE would allow it to produce a 3G wireless phone and "many other amazing things" in the near future.
Comments
The cell companies, and the land line phones, and the cable companies, (and the oil and fast food and others) only 'innovate' if they can put some immediate bucks in their pocket. The major innovation of the cell companies is in their creative mergers and takeovers, and the spelling of their names.
Thank god the consumer electronics companies (and not just Apple) are innovating or the whole American economy would be in the toilet.
So Cingular is claiming the innovation in this partnership? Wow. Their last innovation was a camera in a phone. And they didn't see the advantage to the user to have random access to messages?
The cell companies, and the land line phones, and the cable companies, (and the oil and fast food and others) only 'innovate' if they can put some immediate bucks in their pocket. The major innovation of the cell companies is in their creative mergers and takeovers, and the spelling of their names.
Thank god the consumer electronics companies (and not just Apple) are innovating or the whole American economy would be in the toilet.
Wasn't there a law passed recently that says that cell phone companies have to enable the sim chips (is that the right term) in phones to be used in competitor's networks? If that is so, the restriction with Cingular is based on the unique GSM network that Cingular has in the US.
Igniting the controversy was Apple chief executive Steve Jobs...
maybe that accounts for the notably flat, unimpressive presentation by cingular's top guy during the keynote: maybe he was just pissed at what he'd heard, and was choosing his words carefully.
...Several new Apple-branded phones may be "coming out very quickly," he said...That allusion may help address complaints that iPhone's current limitation to EDGE mobile broadband would curb its appeal in the face of much faster HSDPA (or 3G) access...
Yeah, it is worthwhile refreshing ourselves about EDGE (from Wikipedia http://en.wikipedia.org/wiki/Enhance..._GSM_Evolution)
Enhanced Data rates for GSM Evolution (EDGE) or Enhanced GPRS (EGPRS), is a digital mobile phone technology that allows for increased data transmission rate and improved data transmission reliability. It is generally classified as a 2.75G network technology. EDGE has been introduced into GSM networks around the world since 2003, initially in North America.
EDGE/EGPRS is implemented as a bolt-on enhancement to 2G and 2.5G GSM and GPRS networks, making it easier for existing GSM carriers to upgrade to it... Whether EDGE is 2G or 3G depends on implementation. While Class 3 and below EDGE devices clearly are not 3G, class 4 and above devices perform at a higher bandwidth than other technologies conventionally considered as 3G (such as 1xRTT). Because of the variability, EDGE is generally classified as 2.75G network technology.
There will be unlocked phones available the day they ship. For sure they will be available once they hit Europe. I don't know how but all the cool phones always end up available in the grey market.
Yup, we should expect hacks to get unlocked grey exports around the world. Well, not grey, but essentially the unlocked iPhone black market shipping to Europe, Australia, Asia, etc. etc.
The June/July 2007 model though should take a few months to crack, and by the time the unlocked phones are out and about they'll be available globally around the start of 2008.
Region-Locking may be another weird thing going on with iPhones at the start of 2008, whereby somehow it might prevent, say, iPhone unlocked sold in Europe being brought back to the US and used with any carrier.
The complication is the "random-access" voicemail - which it may "force" onto European or Asian or other carriers... Some very interesting developments ahead. If we look at the move of Apple from the 1st growth engine (Macs) to the 2nd growth engine (iPods) clearly there is a movement to a larger market base. Same thing in the case of 3rd growth engine from iPods to Mobile Phones. A sliver of the mobile phone market would be huge revenue and profit growth for Apple and AAPL stock.
The first 30 years was just the beginning.
Apple isn't afraid of lawsuits. He will just go out and sic the iTourneys on them.
woot 1500 posts!!
My hope? That for once, the hardware/software combo shines so much that people see and want the added potential an Apple approach can bring.
The iPhone isn't directly competing with business-oriented phones. It is pressing up against them pretty strongly, though. This is going to drive the market forward. Consumers use "smart" phones while hopefully some geniuses are in the works.
What if iPhone isn't the best that's coming? If iPhone is consumer oriented, are there business-works coming?
Dancing with the devil. Neither wants to appear the lesser. We get to wait and see who is.
My hope? That for once, the hardware/software combo shines so much that people see and want the added potential an Apple approach can bring.
The iPhone isn't directly competing with business-oriented phones. It is pressing up against them pretty strongly, though. This is going to drive the market forward. Consumers use "smart" phones while hopefully some geniuses are in the works.
What if iPhone isn't the best that's coming? If iPhone is consumer oriented, are there business-works coming?
Yea possibly; at least I hope so 8) . But what would Apple be able to do with a business-oriented smartphone?
1) Push email through exchange, etc. Ok
2) word, excel, ppt? I don't know... These apps are very lowsy on the Windows Mobile phones and Apple needs to work with the Mac BU in order to get it out so it might take a very long while (seeing as to how Office for Mac 2008 is still long away development-wise).
So where else can they expand on the business-centric iPhone?
Text, calls, music, calculator, calander, contacts, settings. That's all I want.
Oh.. and a $299 price tag and a small sleek-looking form factor with touchscreen like this one;
(price would probably be closer to $349, but I'd pay it)
And Palm is fighting for their very life, which can be a powerful motivator.
While Apple probably has patented every aspect of their multi-touch experience, I'm not sure that the major manufacturers won't be able to come close to it.
This isn't like Creative and Samsung trying to copy the scroll wheel. The above named companies can do amazing things with design when pushed.
The phone biz is extremely competitive and Nokia, RIM and Motorola have the dollars to compete.
The same could be said about Windows, in that Microsoft has the mula to destroy Apple with regards to it's OS's looks and ease-of-use, but it's not that simple.
While Apple probably has patented every aspect of their multi-touch experience, I'm not sure that the major manufacturers won't be able to come close to it.
The iPhone runs on a sub-set of Mac OS X, a relies heavily on Core Animation to display powerful animations without choking or bloatifying in the process. That's not somthing competitors can whip up in 6 months.
maybe that accounts for the notably flat, unimpressive presentation by cingular's top guy during the keynote: maybe he was just pissed at what he'd heard, and was choosing his words carefully.
Nah, I'm pretty sure he was just a crappy public speaker reading a speech that someone else wrote off a piece of paper.
Yup, we should expect hacks to get unlocked grey exports around the world. Well, not grey, but essentially the unlocked iPhone black market shipping to Europe, Australia, Asia, etc. etc.
Yeah, they won't be clearly grey, that kind of hacked phone is generally classified as 'intermediate gray'.