Apple Poised to Cut Carriers Out of the iPhone Experience?

Stacey Higginbotham (no relation to Michael Hickenbottom) at GigaOm snagged a fantastic scoop on Apple working with Gemalto on future iPhone SIM-card technology. The two companies are working on making the iPhone experience easier for customers while keeping carrier involvement to a minimum. Here are the details:

It’s rumored that Apple and Gemalto have created a SIM card, which is typically a chip that carries subscriber identification information for the carriers, that will be integrated into the iPhone itself. Then customers will then be able to choose their carrier at time of purchase at the Apple web site or retail store, or buy the phone and get their handset up and running through a download at the App Store as opposed to visiting a carrier store or calling the carrier. Either way, it reduces the role of the carrier in the iPhone purchase.

Before you get too excited, keep in mind that this is aimed (initially anyway) at European customers. Unlike the American market, the mobile frequencies used in most European countries are the same. Furthermore, there’s a lot more country hopping in Europe, so it would be super convenient for customers to be able to change carriers through a simple iTunes download.

The tech has all sorts of implications. Apple is very proud of the experience it offers through the Apple Store. As far as retail experiences go, it beats the crap out of an AT&T store. This technology makes carrier stores unnecessary at best and a minor nuisance at worst. Although the tech is being aimed at the European market, there are radio chips that can handle various types (GSM and CDMA) and frequencies of mobile signals, so it’s a possibility for America as well.

Lastly, the technology has the chance to help Apple succeed where Google wussed out with the Nexus One. Although Apple is making a killing through AT&T, the structure of that relationship will change as it moves to other carriers. I’m sure Apple is concerned about the various (crappy) experiences offered by the “big four’s” retail stores. This technology would eliminate their involvement or keep it to a minimum.

I really hope this technology comes to America. The carriers have way too much stroke here and disruption is overdue. The technology being worked on by Apple and Gemalto has a chance to drastically change the market and, hopefully, make it more competitive. Or perhaps I’m being wishfully naive. What do you think?

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Today’s Poll: Do You Still Care About the White iPhone 4?

Depending on which story you believe, the white iPhone 4 has been delayed until March 2011 or completely canceled. At this point, do you even care? If it comes out in March, the iPhone 5 will be months away. Then again, it’s kind of like a super-rare Pokemon — cool to have and show off. Kindly vote in today’s poll and discuss!

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The PSP Phone is Real…and Necessary

The PSP/Android phone is very real (like Sardo Numspa). Engadget delivered a sizzling scoop on the rumored PSP/Android phone. According to the site, the phone will run Android 3.0 (Gingerbread), sport a 1GHz Qualcomm MSM8655 (similar to, but faster than, the T-Mobile G2’s CPU), have 512MB of RAM, 1GB of ROM, and have a screen larger than 3.7-inches. The site believes that the phone will land some time in 2011, though late 2010 is a remote possibility.

A Google Android phone that played PSP games would be awesome…and necessary on several levels. Here are some reasons it absolutely makes sense.

  1. Sony needs an edge to compete with Nintendo. While I seriously doubt that the next two generations of PSP products can closely compete with Nintendo’s next two handhelds, Sony can do better than it did against the Nintendo DS. The Nintendo 3DS will dazzle consumers with 3D visuals, but mobile phone capabilities would be more practical for numerous users — particularly older gamers with disposable income. Combining the PSP and Android platforms offers gamers an awfully tempting combination.
  2. Sony can push back against Microsoft and Windows Phone 7. One of the big draws — albeit to a limited audience — of Windows Phone 7 is its connectivity with Xbox Live. The PSP/Android phone offers real games instead of limited ones. If Sony can up social networking features of PlayStation Network on this phone then it will trump what Microsoft has accomplished with WP7.
  3. Google needs help in gaming. The iOS platform is the undisputed king of mobile phone games. Although Android games have improved, they’re still way behind their iOS counterparts. The PSP/Android phone offers a large library of games for enthusiast and casual gamers. This would be tremendous for Google.

What do you think of the PSP/Android phone? Engadget is confident that this is a real product. Do you agree? Would you want one? Would you prefer PSP games on a phone over iOS games? Let’s talk! Let’s speculate! Let’s party!!!

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Coffee Talk #233: Data Caps vs. Data Throttling

The mobile world is a-changin’: AT&T has moved to a tiered data system, Verizon is launching its tiered pricing soon, and T-Mobile will unleash a strange hybrid of tiered plans complemented by throttled “unlimited” plans.

Welcome to Coffee Talk! Let’s start off the day by discussing whatever is on your (nerd chic) mind. Every morning I’ll kick off a discussion and I’m counting on you to participate in it. If you’re not feelin’ my topic, feel free to start a chat with your fellow readers and see where it takes you. Whether you’re talking about videogames, the last time you rode Amtrak, Phil Hughes rocking it tonight, or the Los Angeles Angels of Anaheim in Orange County brought to you by Disney, Coffee Talk is the place to do it.

The mobile world is a-changin’: AT&T has moved to a tiered data system, Verizon is launching its tiered pricing soon, and T-Mobile will unleash a strange hybrid of tiered plans complemented by throttled “unlimited” plans. The days of truly unlimited mobile data are coming to a close. Which scheme is worse? Tiered data plans with hard caps or throttling data after a certain number is hit?

On one hand, a lot of consumers — ones that use less data than they think — can save money in a tiered system. A lot of iPhone and iPad users don’t come anywhere close to the 2GB limit that comes with the $25 data plan. (Yes, some of these people are hipster lamers that never download apps.) Data hogs and those that want less restrictions will be happy with T-Mobile’s data rates…until they hit 5GBs of data and the company can throttle down bandwidth.

Both pricing schemes suck and stifle the future of mobile computing. Developers are limited in what they can do with mobile apps because they don’t want to create a brilliant program that consumers will avoid because it hits the Internet for too much data. Consumers won’t use the devices they have as much as they would if data were truly unlimited. Unfortunately, data caps and data throttling are here to stay. Which one do you think is worse?

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32% of iPad Owners Haven’t Downloaded an App?!?

According to a recent study by Nielsen Wire, 32 percent of Apple iPad owners have not downloaded an app. Compare that to 63 percent having downloaded a paid app and five percent having downloaded free apps only. That deserves a Brian Fellow, “That’s crazy!!!”

There’s no doubt that the iPad is an amazing device that has legitimized the tablet computing market, but it’s also a popular choice for hipsters that want to be seen with a cool piece of consumer electronics at a trendy coffeehouse. As my friend Christian says, “The iPad is an international symbol for douchebaggery.”

Keep in mind that the survey used a sample size of 5,000 consumers. Still, the numbers are fascinating. What do you think of them? Do you agree that the iPad is one of the most coveted hipster accessories in 2010? Also, the next time I go to Intelligentsia in Silverlake and see someone with an iPad, I’m going to assume it’s some lamer that has never downloaded an app.

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Apple’s Mac App Store Will Be a Huge Game Changer

At its “Back to the Mac” press conference, Apple unveiled the Mac App Store for the current Snow Leopard (OS X 10.6) and the upcoming Lion (OS X 10.7) operating systems. The Mac App Store replicates the simple experience of purchasing apps for the iPhone, iPad, and iPod Touch devices. It also offers the 70/30 split between free apps and paid apps, as well as developer revenue and Apple’s cut. Here’s more info from the press release:

The Mac App Store brings the revolutionary App Store experience to OS X, making discovering, installing and updating Mac apps easier than ever. Like on iPad, you purchase apps using your iTunes account and they download and install in just one step. App updates are delivered directly through the Mac App Store, so it’s easy to keep all of your apps up to date. The Mac App Store will be available for Snow Leopard within 90 days and will be included in Lion when it ships next summer.

I’ve been thinking about the Mac App Store all day (even while watching the Yankees beat the crap out of the Rangers). My initial thought was, “This is going to be frickin’ huge!” After digesting the information for several hours I have come to the conclusion that this is going to be frickin’ huge!

From Apple’s perspective, this is an ingenious way to trap customers into its walled garden. For consumers, the convenience of buying apps in a simple and straightforward way is brilliant. The apps can be used across multiple machines, which is great for people with multiple Macs. I’m sure Apple feels that once people invest in the ecosystem, it will be harder for them to leave; it’s similar to how many iPhone users are reluctant to switch platforms because they have bought so many iPhone apps. If people buy numerous Mac App Store apps, they’re less likely to switch to Windows (or Linux).

I also expect more developers than ever to flock to the Mac platform. Some analysts have stated that Mac OS accounts for 10 percent of the personal computers in North America and 20 percent globally. I believe that the Mac App Store will help grow the installed base.

I’m convinced that this is Apple’s most significant software and services product since the original iTunes. As you know, iTunes helped Apple dominate with the iPod, enjoy enormous success with the iPhone, and legitimize the tablet market with the iPad. While the results won’t be as dramatic as what it did with the iPod, I think the Mac App Store will invigorate the Mac software scene, attract new customers, and make existing customers more likely to purchase a Mac in the future.

Then again, I could be totally wrong. What do you think of the Mac App Store? Is it a genius move by Apple? Or am I overstating the impact that it will have?

Apple Unveils New MacBook Air Laptops: Instant-On, Flash Storage

At its “Back to the Mac” press conference, Apple unveiled new 11.6-inch and 13.3 inch MacBook Air laptops. Both models feature instant-on capabilities for super-fast boot-times and flash storage for zippy data access. The 2.3-pound 11.6-inch models feature 1.4GHz Core 2 Duo CPUs, while the 2.9-pound 13.3-inch models feature 1.86GHz CPUs. The smaller model has five hours of battery life, while the larger model has seven. Both models feature Nvidia 320M GPUs.

Here’s the price breakdown as per Apple’s press conference:

  • $999 11.6-inch with 64GB of storage
  • $1,199 11.6-inch with 128GB of storage
  • $1,299 13.3-inch with 128GB of storage
  • $1,599 13.3-inch with 256GB of storage

The 11.6-inch model has an option for a 1.6GHz CPU, while the 13.3-inch model has a 2.13GHz CPU option.

It’s disappointing that the new MacBook Airs use old CPUs, but it’s understandable from a positioning standpoint; the company still wants to sell plenty of its popular 13.3-inch MacBook Pro models and would have killed those sales by placing an i3 CPU in the MacBook Air. Furthermore, these are meant to be thin-and-light models that are all about fast boot times and fast hard drive access, not raw power. Still, it would have been nice to cut video on these babies.

Check out the pictures below and let me know what you think of the new MacBook Airs. Are you drooling for one? Do you think they’re too expensive?

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Fake Steve Jobs Talks Google Android…Again

After nearly a month of silence, Fake Steve Jobs is back with a hilarious rant on Google Android. As with most of the blog posts by Fake Steve, this one should not be missed. Here’s a clip:

To reiterate: We are way more popular than Android. In fact, Android is not that popular at all. From what our research tells us, hardly anyone is buying Android phones. I know — that’s not what you’re hearing from the so-called “independent” market research outfits. So ask yourself, why is that? How could all those firms get this so incredibly wrong? Could it be that they’ve all been bought off by Google? Maybe that’s something that someone should be looking into.

But think about it. Do you know anyone who has an Android phone? I don’t. Honestly, not a single person I know has an Android phone. I’ve never seen one anywhere, in public, being used by a real person. I just haven’t. I mean I’ve seen the ads. But I haven’t seen an actual Android phone, and until I do, then as far as I’m concerned they simply don’t exist. They’re like Bigfoot, or the Loch Ness Monster. Great story, very entertaining, but not real.

I highly suggest reading the whole thing. Fake Steve rules!!!

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Google, RIM, and TweetDeck Fire Back at Apple’s Steve Jobs

Apple CEO Steve Jobs made a lot of noise with his comments during the company’s Q4 2010 earnings call. Google, RIM, and TweetDeck executives have refuted some of Jobs’ statements. The executive trash talking is getting good. Grab some popcorn and enjoy.

TweedDeck founder and CEO Iain Dodsworth sent out two tweets addressing Android fragmentation being a nightmare for developers:

Did we at any point say it was a nightmare developing on Android? Errr nope, no we didn’t. It wasn’t.

We only have 2 guys developing on Android TweetDeck so that shows how small an issue fragmentation is

Google VP of engineering Andy Rubin sent out a playful and nerdy tweet addressing Jobs’ assertion that Android isn’t really open:

the definition of open: “mkdir android ; cd android ; repo init -u git://android.git.kernel.org/platform/manifest.git ; repo sync ; make”

RIM co-CEO Jim Balsillie issued a statement responding to Jobs’ diss on the company and the BlackBerry platform:

For those of us who live outside of Apple’s distortion field, we know that 7″ tablets will actually be a big portion of the market and we know that Adobe Flash support actually matters to customers who want a real web experience. We also know that while Apple’s attempt to control the ecosystem and maintain a closed platform may be good for Apple, developers want more options and customers want to fully access the overwhelming majority of web sites that use Flash. We think many customers are getting tired of being told what to think by Apple. And by the way, RIM has achieved record shipments for five consecutive quarters and recently shared guidance of 13.8 – 14.4 million BlackBerry smartphones for the current quarter. Apple’s preference to compare its September-ending quarter with RIM’s August-ending quarter doesn’t tell the whole story because it doesn’t take into account that industry demand in September is typically stronger than summer months, nor does it explain why Apple only shipped 8.4 million devices in its prior quarter and whether Apple’s Q4 results were padded by unfulfilled Q3 customer demand and channel orders. As usual, whether the subject is antennas, Flash or shipments, there is more to the story and sooner or later, even people inside the distortion field will begin to resent being told half a story.

This is great stuff! These guys should all get in a steel cage and for a last-man-standing match. I’d buy that on PPV.

Listen to Steve Jobs Rock Apple’s Q4 Earnings Call

Normally, I wouldn’t advise you to listen to an earnings call, but Apple CEO Steve Jobs made a rare appearance during Apple’s Q4 2010 results announcement. His presence made the call exponentially more entertaining. He blasted Android, blasted RIM and its BlackBerry platform, blasted seven-inch tablets, talked about sanding your fingers, and was his usually charming self. Click here to give it a listen (Jobs jumps in around the 15-minute mark). Here are some quotes from his Royal Worshipfulness Grandmaster High Steve.

On the “open” Google Android vs. the “closed” Apple iOS:

Google wants to characterize Android as open, and iOS and the iPhone as closed. We think this is disingenuous. Unlike Windows, which has the same interface on every machine, Android is very fragmented. Compare this with iPhone, where every interface is the same. You know, even if Google were right, and the real issue is closed versus open, it’s worth noting that closed systems don’t always win — look at Microsoft’s Plays For Sure model. Even Microsoft abandoned this strategy in favor of Apple’s integrated approach. We believed integrated will trump fragmented every time.

On seven-inch tablets vs. the Apple iPad:

Let’s talk about the avalanche of tablets. First, there are only a few credible competitors. And they all have seven-inch screen. This size isn’t sufficient to create great tablet apps. And this size is useless unless you include sandpaper so users can sand their fingers down to a quarter of their size. We’ve done extensive testing and 10 inches is the minimum tablet size. Given that tablet users will have a smartphone in their pocket, there’s no point in giving up screen size. Seven inch tablets are tweeners — too big to be a phone, and too small to compete with the iPad.

On Apple’s goals with the iPhone:

Our goal is to make the best devices in the world, not to be the biggest — as you know Nokia is the biggest, and we admire them for shipping as many devices as they do. But we don’t want to be like them — we want to be like us, and make the best devices. Nokia makes $50 handsets, and we’re not smart enough to figure that out yet — I’ll let you know when we do. Our goal is to make the best products in every industry we compete in while driving costs down. That’s what we did with iPod — it was relentless improvement and lower prices that was able to beat our competition. As you know we have a very low share in the phone market — single digits if you count all the handsets, and a high share in tablets because we were the first movers. But that’s not how we think about it. The reason we don’t make a seven-inch tablet isn’t cost, but because seven inches isn’t big enough for the software people want to put on them.

Steve is awesome.

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