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The iPhone Economy

Posted on 18/07/2008 at 05:21 PM in

OK, before I start let me explain my position. I don’t currently own an iPhone (the black 16GB are illusive little buggers in O2 stores) but I’ve had an iPod touch for several months. I think it’s the best handheld device out there and has one of the best development environments available. It really is Apple’s crowning achievement. I have some iPhone applications planned. I’ve also spent way more money than I should have on the AppStore. But I have some niggles.

For me the iPhone/iPod touch platform (I’ll just say iPhone from now on) isn’t a very appealing platform for an app developer. I mean, there are some apps that are ideal for it but most of these already seem to have been done, there is only so much you can do with photos, so many ways of making a ToDo app etc. Maybe I’m just lacking imagination but I can’t really think of that many applications that could go on the iPhone. Sure, I can think of all sorts of custom stuff for businesses, but that’s boring work. In terms of stuff you make, pack up and sell to customers the idea pool is very limited.

But why? One answer is the hardware. Multi touch is great but requires large target areas. This limits what you can show on a single screen, limiting the complexity of an application. Yes you can have sub categories and stuff hidden away, but while that works fine on the Mac and is actually the recommended way of doing things, there is only so much stuff you can hide before it pisses off users.

The other part of this equation is that while multi touch controls require quite a bit of screen space, the screen space is limited on the iPhone. Even if you could use a keyboard an mouse, there is only so much you can do on such a tiny screen.

Does this mean that the iPhone sucks for applications? Not at all, in fact it is ideal for some sorts of applications, it is just pants for others. It doesn’t give you the flexibility to build as wide a range of applications as the Mac and it doesn’t let you make an application as feature filled as on the Mac, but this is also an advantage, because it means developers can focus on making what they can do with the device the best user experience out there.

But it’s not all doom and gloom about what you can develop for the iPhone, because I’ve only been talking about applications up until now. Where the iPhone will excel is gaming. It is an almost perfect hand held gaming device. In gaming terms, it is like if the PS3 and Wii has a lovechild which was also genetically modified with DNA from the GameBoy. It is the most powerful in it’s class with a unique selection of input devices and is incredibly portable (I’ve had my iPod touch for over 9 months now and I still can’t get over how bloody thin it is).

The iPhone is brilliant because it forces developers to be innovative and try to get around the fact that there’s no D-Pad. The iPhone is unique in this regard, even the Wii has a D-Pad. Of course, developers won’t get this right the first time but innovation isn’t always a nice process to watch. I’m going to be spending half of my last year of University looking into the various ways you can control games trying to find out what works best in what situation, but even then there won’t be one set of controls that work best in one situation.

So what about the economy part of things? Well some people seem to think that the iPhone will be a bigger platform than the Mac in a few years. I tend to agree with them, but it will be an entirely different platform. The Mac’s bread and butter is content creation and content creation requires some degree of accuracy and a decent amount of screen space. The iPhone will consist more at applications you just want to pull out and look at briefly while you’re on the go, but it will shine most as a gaming device. And while the Mac commands an average price of around $25-30, the iPhone will be more around $8-10.

It isn’t really right to compare the Mac to the iPhone, they are designed for two completely different scenarios. It would be like comparing Stickies.app to Word. One is designed for quick and simple stuff, the other is designed to sit down and immerse yourself in work. Yes, the iPhone will be a bigger platform in terms of unit sales, revenue, profit and everything that matters to anyone trying to make money. But don’t think that you can just transfer straight straight from the desktop and expect it to be the same sort of market. It’s a different class of applications, aimed at a different type of user in a different type of situation.

(4) Comments





Comments

Good points.  Since more people consume than create content, iPhone is important.  Plus iPhone actually has better communications support right out of the box.

One other thing: I’m certain there will be devices in between iPhone and MacBook Air in terms of size.  And of course, iPhone will keep gaining in processing power.  The question is will Apple make these devices as consume/ communicate-devices (like iPhone) or as create-devices (like Mac).  Is iPhone really the largest sized device (i.e. pocketable) that people will carry for consuming/communicating?  Is anything smaller than MacBook Air really usable for content creation?  Tough questions, it will be interesting to see what Apple determines.

Posted by mark on 18/07/2008 at  08:59 PM

As I was reading your post, I had a few choice topics to point out to you but, you manage to answer your own questions before the end.
I was going to point out that the comparison to a Mac was unreasonable because all of the obvious reasons. The other thing is, the limitations are truly your imagination and mine. What is important, I believe, is that it must be recognized that the iPhone and Touch and actually hand held computers. We don’t know what the creative world will come up with. The possibilities are enormous. (I’ve had a few ideas myself…just that I’m not a developer of hardware or software.)
Seeing the app store shows that there are huge advantages to actually being a computing device. What will happen as the platform matures? The answer resides in those more creative than you and myself.

Posted by Darryl365 on 18/07/2008 at  09:12 PM

The iPhone to the developer is an empty canvas.

This gives the developer enormous freedom in creating the interface.  You don’t have to be limited by a keyboard or D-pad, etc.  You can design the touch screen interaction you want.

As such, there are a whole slew of applications that can be made for it.  Only your imagination is your limitation.

The problem in your thinking is that you divide apps into large categories:  Business, Multimedia (i.e. photos), and Games.  Then you try to think what other categories there are, while completely dismissing the enormous diversity of the apps within each category.

Business apps for example can include:
1. Medical applications.
2. X-ray, MRI, and other medical imaging reading devices.
3. GPS-based services - including the mapping functions.
4. Calculators
5. Apps for specific businesses and their needs
6. Phone applications
7. VOIP applications
8. Internet-connected services - such as Google’s search devices.
9. Information gathering services.
10. Car maintenance, mileage counters, etc.
etc.

There are other categories I can think off off the bat:

1. Entertainment apps - e.g. movie searches, restaurant advice, travel advice.

2. Educational apps - ebook readers, math applications, physics appications.

3. Photography apps - there are already several

4. Personal health applications - e.g. monitoring your menstrual cycle, diet counters and aids, exercise monitoring apps - including Nike’s own running applications.

5. Scientific Apps - such as astronomy guides, weather reporting, etc.

6. Sports Apps - such as the National Baseball Leagues’ own app, training apps, etc.

etc. etc.

Your imagination is the limitation.  So expand it.

One way of getting more categories is to just look at the phone book headings, or other sources of information categories such as looking at Yahoo’s categories.

Posted by James Katt on 20/07/2008 at  12:23 AM

@James: Like I pointed out, there’s all sorts of custom business stuff that can be done. In fact that’s a pretty wide open area. But if we look outside of the business apps then you’ll find that pretty much all of the categories you suggested have been covered on the App Store already in pretty good detail.

I’m not saying that I can’t think of anything to write for the App Store, just that the selection of things that would work is fairly limited compared to the desktop, which with quite a large developer pool makes for a tough time carving yourself a niche.

Posted by Martin Pilkington on 20/07/2008 at  04:33 PM

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