Jobs: iPhone supply may not meet demand
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InfoWorld - The number of iPhones manufactured by Apple may not be enough to meet customer demand when the smart phone goes on sale later Friday, CEO Steve Jobs said in an interview published the same day.
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(InfoWorld) - Gartner, IDC, and 451 Group research analysts, this week warned IT administrators to keep iPhones away from their businesses. "We're telling IT executives to not support it because Apple has no intentions of supporting [iPhone use in] the enterprise," Gartner analyst Ken Dulaney said. "This is basically a cellular iPod with some other capabilities, and it's important that it be recognized as such." As if that will stop people from buying them anyway when they hit the market in the U.S. next week. The reality is that no matter how hard IT administrators try, the iPhone will be snapped up by their employees -- and not just the average Joes either. The device is a status symbol that will likely be snapped up by business leaders as the digital technorati. Try telling your CEO the iPhone doesn't play well with your IT systems. Dulaney and other researchers notwithstanding, this device can be good for the enterprise because of the business needs of smartphone users. It is an iPhone, after all, with an emphasis on phone. It offers e-mail -- currently the most popular means of business communications. There's an address/phone Book for quick access to contacts. It offers SMS, a quick way to contact other mobile phone users, and voicemail -- both useful to road warriors. There's a real Web browser -- by far the most underpowered and underappreciated part of a mobile phone. And it contains a slew of enterprise-worthy apps, including a calendar, access to maps, spreadsheets, and a document reader. All of these things are important -- and all can be done to a greater or lesser extent on most business-focused PDA phones. But in the business world, the mobile Web browser is the key to the future of business apps, and it is becoming a platform unto itself. One thing that Apple CEO Steve Jobs made abundantly clear at last week's Worldwide Developers Conference (WWDC) is that the iPhone would include a full browser. The Symbian and Linux platforms' best browser is Opera Mini -- which isn't that bad -- but it by no means constitutes a full browser. Windows Mobile's browser isn't bad either, but it also falls well short of Internet Explorer 7. Additionally, the iPhone browser has a lot of zooming and panning tricks that make it more usable on the relatively small screen. In that crucial area, advantage: iPhone. Why is the browser crucial? Because most new business applications are being built around it. AJAX and other browser technology innovations over the past few years have turned the browser into a veritable platform. Sure, a lot of legacy applications still require browserless, platform-specific client applications. But those days are numbered. It's not just the isolated applications that are moving to a browser. All of the stalwart office applications are also moving to the Web. With Google Office (which now works with Safari -- the iPhone browser), Soho Office, and even Web-centric versions of Microsoft Office applications, the browser is truly the new business platform. The iPhone is not without its business-use flaws. It doesn't natively sync up with Lotus Notes or Exchange - and Microsoft, at least, will most likely do everything in its power to try to keep it that way to protect its Windows Mobile business. It can, however, hook up to IMAP email, LDAP address books, and WebDav for calendaring; with a bit of tweaking, that will work well for Exchange-based companies. Microsoft SharePoint can also be browsed from the Web interface, but to what extent? Time -- and the work of apps developers -- will tell. A newly anointed relationship with Cisco on all things iPhone should also let the device into the VPN and might even let an iPhone play well with Cisco VoIP solutions. And of course, don't forget the arduous task of getting your conservative IT department to accept the idea of letting loose an Apple phone -- or even MacBook Pro -- into the office. Previews of the phone haven't yet touted an instant messaging client like Apple's iChat or AOL Instant Messenger. It is likely, however, that Apple will include something with instant-messaging functionality in the near future -- there are still four slots left in the iPhone's application window. It's also true that the first-generation iPhone isn't the raw specs winner by any stretch. That honor goes to the Symbian/Windows Mobile 6 Phones coming from Toshiba (the G900), Nokia (the N95), Samsung (the F700) and HTC (the Shift). AT&T's EDGE wireless network is slow by today's standards, and while Wifi connectivity will help, there are questions about why Apple has forsaken the HSDPA/UTMS component and when an update might occur. Given that battery life is a factor -- Apple this week released updated specs that go beyond what it touted in January -- EDGE makes sense because it's more energy efficient. Also, the 8GB max on storage is seems low. At a time when you can buy an 8GB SD card for less than $80, Apple likely looked to keep costs down with an eye on upping that storage when it's economically smart. Most users would likely be happy with a micro/mini/SD card slot now standard on most smartphones. There is, of course, the price. The iPhone's hefty $499 and $599 price tags, depending on which model you buy, is a definite disadvantage in business. With relatively comparable gear (from a corporate standpoint), such as the Motorola Q, which is almost free with a service plan, buying an iPhone requires serious justification. We're talking about spending the equivalent of a budget laptop. Of course, something that you spend half your day using should justify the premium that this delicious piece of hardware demands. And then there are at least two intangibles: Usability. Apple's legendary reputation for making painful tasks easy will totally transform the mobile phone industry. And remember, companies love productivity from their workers. Until now, the big players have been Microsoft Windows Mobile, Palm, Symbian, and Linux. They all had successes. But it's the last 10 percent of usability that Apple always manages to squeeze out its products will be the differentiator. Apple did the same in the computer industry until Microsoft caught up. Apple has learned from this and patented every minute detail of the iPhone, making it harder for copycats to appear anytime soon. The few seconds here there that the iPhone saves users will quickly add up. It's the little things that make for big savings across an entire enterprise. Business bling, baby. Everyone knows that this is the phone to have. Just look at the buzz ahead of the June 29 launch. Apple has spent the last few years building up its brand across all channels and is reaping the rewards like no other company in the industry. As much as the enterprise IT guys will want to recite better specs for rival Windows Mobile devices, nobody wants to hear that. I can imagine any number of CEOs saying, "I don't care! Just make the iPhone work on our systems!" And if it works for the CEO, you can bet the sales folk will want in on the action, too. Think they'll want to show up to a meeting with an important client and whip out last year's "hot" phone? They might as well wear parachute pants as well.
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Something big is happening with the iPhone. No, it's nothing Steve Jobs will announce today at Macworld. Rather, it's how iPhone customers are using their phones. On Christmas, iPhone traffic to Google surpassed traffic from all other mobile devices, The New York Times reported Monday.
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(InfoWorld) - With the release of Apple's iPhone on June 29, IT managers are hustling to find ways to support the devices, anticipating the moment when the CEO walks in with one and demands, "Give me my corporate e-mail on this gizmo." Analysts and IT managers said Thursday the iPhone will be popular among their workers who buy them for consumer uses, but the devices will certainly challenge businesses because of the needed support for e-mail, iTunes songs, and other applications. For example, at communications conglomerate ABC in New York, the official policy, for now, is not to support the iPhone at all, but there will be some exceptions for top executives. "At this point, with a few exceptions, the iPhone is not a supported device, but for one or two ABC presidents, we'll make the walls move to allow it because we're in the communications business" and they will want to see iPhone's capabilities, said Jeff Plotkin, an engineer for broadcast operations and a technology liaison at ABC. "We'll figure out how to allow them access to e-mail." Plotkin and other IT managers said there will be plenty of iPhone allure for their workers even though the multifunction device doesn't support Lotus Notes or Windows Outlook e-mail, which are popular in corporate settings. Instead, iPhone will provide a Web access client for e-mail access, analysts noted. "After it is out and the price point comes down, more people here might set up a business case for it, saying it could do this or that," Plotkin added. "I can see our policy changing eventually." Also, the iPhone will pose a nightmare for IT because it requires an iTunes music directory account for each user, IT managers said, putting IT in the position potentially of providing song storage capacity and justifying that the copyrights for the songs were not violated or that the songs were properly paid for. "How many enterprises want iTunes software running around in the enterprise?" asked Gartner analyst Ken Dulaney. Meanwhile, corporate policy at Marriott already prohibits iTunes registration on Marriott's systems by its workers, said Arnaldo Impelizieri, director of hotel technology for the Grande Lakes Orlando resort, which is run by Marriott. "We're worried about the size of iTunes files and also who is buying songs or not, and the huge concern about potential copyright infringements," he said. However, Impelizieri said the hotel chain faces a dilemma because it will want to support the iPhone, and iTunes, for its hotel guests. "If a customer has one, we'll do our best to support it, but that will require some sorting out. We have to get our hands on the iPhone and see if it's all that it's beefed up to be. When BlackBerry first came out, there was a wave of uncertainty at first." For months, industry analysts have warned about e-mail access, security, and whether the voice quality of the iPhone will be up to corporate standards. Dulaney is finalizing a report describing iPhone concerns but would not discuss it until its release next week. "Lots of Gartner clients are asking" about iPhone for business uses, Dulaney said. "They are scared of this device." Tim Ma, a biomedical engineer at the American Red Cross in Washington who also handles some IT planning, said he expects "pressure from users" to support the iPhone. "It's too early in the game to say if we'd support it. We'd need a proven track record before moving forward." He said he is personally curious about iPhone's features and potential benefits for a large organization and will eventually test it out thoroughly. For one thing, the iPhone will have a full-screen Web browser, an apparent advantage over what Reseach in Motion's BlackBerry offers the Red Cross. Meanwhile, he added, "We have a contract with BlackBerry for a long time." Jack Gold, an analyst at J. Gold Associates, said he doesn't consider the iPhone as currently envisioned suitable for business users unless they limit their use to functions like the phone. "IPhone doesn't have push e-mail," he noted. Early reviews from February that the iPhone's voice quality was not good have raised questions as well, he said. "Everybody assumes that because Apple makes it, the iPhone will be great, but it's hard to make a good phone, let alone pass data," Gold said. "Still, executives are going to come back from the store and tell IT to make it work."
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(InfoWorld) - For all the buzz building about Apple's iPhone launch next week, success is not a sure bet, according to a survey released Tuesday. "The first million, no problem," said Chris Hazelton, senior analyst, mobile technology and trends with IDC, talking about iPhone sales. "Interest in this has been building for years. But the '08 goal [of 10 million sold]...that will depend on the iPhone experience. If it's not rock solid...." The IDC survey, which polled online users researching their next cell phone purchase, found a majority were interested in the iPhone but also revealed several hurdles to mass acceptance. About 10 percent, for example, said they were willing to pay full price -- the iPhone will list at $499 and $599 for the 4GB and 8GB models, respectively -- and sign a two-year service contract with AT&T, the iPhone's sole carrier. That's close to the estimate offered by a survey detailed yesterday by M:Metrics, a Seattle research firm, which said that 9 percent, or about 19 million, of all U.S. cell phone subscribers pegged their iPhone purchase intent at high. Although Hazelton didn't argue with M:Metrics' numbers, he stressed the snags that could limit the iPhone to a much smaller group than Apple and AT&T hope. "The exclusivity of AT&T will be the largest barrier," said Hazelton. "Only some people will have timed it right so that they can leave their carrier and won't have to pay an early termination fee." Others, the survey found, were unwilling or unable to eat the penalties. AT&T's rumored five-year exclusivity agreement with Apple will give the two companies the time to "weed out" other carriers from consumers interested in the iPhone, he noted, but again, that could be a slower process than the companies have planned on. "And then there's the price of the iPhone itself, and the need for a data plan on top of a voice plan," Hazelton said. "That's probably $80-plus a month right there. People will pay it if they want the iPhone experience, but moving forward, that may be simply too expensive." If the iPhone doesn't deliver on its promises, though, all might be moot. Dubbing it the "iPhone experience," Hazelton ticked off many of the same potential pitfalls as other analysts, ranging from the lack of a tactile keyboard to the slower speed of AT&T's EDGE-based data network. How users react to the iPhone, and how they expect to use it, said Hazelton, will ultimately be the most important determiner of success. Nothing will kill the buzz faster and brand the iPhone as a failure, said Hazelton, like negative word-of-mouth from the first buyers. And although the early adopters may be especially savvy about technology, one unknown could play a major role. "There are relatively few people who use smartphones in the U.S., and most of them are business users. This will be the first smartphone aimed at consumers," he said. "It's a complicated phone, basically a computer, and like computers, like Macs, it may crash, maybe a lot." Tales of iPhone problems, say frequent crashes, will turn Apple's hope into another Newton, Hazelton argued, referring to the 1993 PDA flop. In other words, there is much that may not go Apple's way after June 29. Ironically, that would make rivals unhappy, rather than glad to see Apple fall flat, Hazelton said. "The iPhone could open up the smartphone market to the U.S. consumer," he said. "When we talk to other device makers and carriers, they generally welcome Apple to the game. It makes sense. The iPhone raises the bar of customer expectations for what a cell phone is. If it succeeds, other vendors will have more ability to drive product upgrades, get customers to pay more for the device, and carriers will be able to get more people to subscribe to the more expensive plans." Apple will launch the iPhone Friday, June 29, at 6 p.m. local time, with the device available then at AT&T and Apple retail stores.
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Blog: AT&T's iPhone activation numbers disappointed many--especially Apple investors--but it's not a perfect measure of iPhone demand.
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KANSAS CITY, Mo. _ The amazing Apple hype machine soon could help unaffiliated wireless carriers sell bunches of music-playing wireless phones.  The debut of the much-heralded iPhone is thought to be imminent, though Apple and AT&T Inc. executives remain mum on the exact timing.
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Consumers aren't willing to pay what Apple Inc. may ask for the iPhone but if the price drops they'll switch their mobile service to AT&amp;T Inc. in order to get it, according to results of a survey released Thursday.
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While Apple and its iPhone were not officially present at the International Consumer Electronics Show this week in Las Vegas, one might say it was possible to feel the company's touch.
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Analyst agrees that a high number of unlocked phones would affect Apple profits, but isn't sure that's the point.
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Analysts are alarmed at a perceived discrepancy in the figures in iPhone sales figures.
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By Christopher Michel As the world braces itself to be swept up by the arrival of the Apple iPhone on Friday, the major cell phone companies Verizon and Sprint -- which are not selling the much-hyped iPhone -- claim they are not intimidated.
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Despite the positive hoopla about the launch of the Apple Inc. iPhone, the  EDGE network it uses may not thrill users for speed -- and the upgrade to a faster version could be costly.
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The huge gap between the number of iPhones sold by Apple and the number activated by AT&#38;T can't be explained by international sales or unlocked units alone.
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By RACHEL KONRAD  SAN FRANCISCO - Apple Inc.'s iPhone won't hit stores until Friday, but the heavily hyped gadget already has unleashed a cottage industry of touch-screen protectors, leather hip carriers and car adapters.
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Analysts are mulling over&#160;Apple&#39;s iPhone sales numbers&#160;and are alarmed at a perceived discrepancy in the figures.Apple claims slightly over 3.7 million iPhones were sold in 2007 -- yet&#160;AT&amp;T this week revealed&#160;it ended the year with &quot;just at or sightly under two million iPhone customers&quot;.That two million has been boosted somewhat by an estimated 300,000-400,000 sales in Europe, analysts believe.The discrepancy is that the 3.7 million iPhones Apple says it has sold and the estimated 2.4 million sold by its network partners still leaves 1.3 million of the devices unaccounted for.That implies that around one in three iPhones are being purchased in order to&#160;unlock the device&#160;for use on other networks and/or for use with unapproved third party applications.While it&#39;s possible some iPhones were sold over the Christmas period but not activated immediately as new users (perhaps) worked to cancel their existing mobile contracts, the discrepancy still implies an active market for unlocked iPhones.Apple chief operating officer Tim Cook told analysts this week that the company believes the number of unlocked iPhones in the wild to be &quot;significant,&quot; but declined to furnish accurate figures.Toni Sacconaghi of Bernstein Research cites these figures in order to claim a substantial market in unlocked iPhones, and speculates this news may also mean a build-up in iPhone inventory.&quot;It indicates end-user demand for iPhone is lower than many investors may think based on Apple&#39;s sales figure -- and it points to slower iPhone sales in the current quarter, since much of this inventory is likely to be drawn down,&quot; the analyst explains.Macworld.co.uk is an InfoWorld affiliate.
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Apple Inc.'s  iPhone may be too expensive for most Americans, but the much-hyped device is expected to help AT&T Inc.  win quality customers and drive shoppers into its stores.