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iPhone 3G S? Who cares?

from:  http://www.pcworld.com/businesscenter/article/167080/iphone_3g_s_who_cares.html

Saturday, June 20, 2009 3:45 PM PDT

The new iPhone 3G S is here! The new iPhone 3G S is here!

Big deal. New cell phone hardware doesn’t matter that much anymore.What’s important now is software. And networks.

Two years ago, the choice between an iPhone or an alternative to the iPhone was mostly about hardware. Cell phones had always been about hardware first, software and networks second.

The iPhone decision back then was: Can I live without a keyboard? The upside was a huge, high-quality screen. Do I want to control apps with touch? Or would I rather navigate menus? What about that horrible battery life? On the other hand, look how thin it is. It was all about hardware.

Now the decision is different. Do I want the iPhone’s thousands of apps or the Palm Pre’s multitasking ability? Do I want Android’s Google search centricity or Windows Mobile’s Microsoft Office compatibility? It’s all about software and networks.

Don’t believe me? Try the following thought experiments:

1. Apple rolled out this week an awesome iPhone 3.0 upgrade. The software improves iPhone 3G performance and functionality. Of course, the new iPhone 3G S runs the new 3.0 OS as well. But if you had to choose between the old iPhone 3G with the new iPhone 3.0 software, or the new iPhone 3G S with the old iPhone 2.0 software, which would you choose? I think most would choose the old hardware with the new software.

2. If you had to choose between the original iPhone, but have full access to iPhone Apps, or choose the new iPhone 3G S but have zero access to Apps, which would you choose? I think you’d go with the Apps.

3. Which would you choose: The Palm Pre with the iPhone 3.0 software, iPhone Apps and iTunes — or the iPhone 3G S running WebOS and accessing the Palm App Catalog. I think most iPhone fans would choose the Palm hardware with the iPhone software and network. And most Palm fans would choose the iPhone with the WebOS. (What Palm users like best, according to my own unscientific poll, is the WebOS and its gestures, "card" system and multitasking — in other words, the software.)

In fact, Apple is dominating the cell-phone handset market precisely because it realizes the new primacy of software and networking. Apple set up a development system that resulted in a huge number of standard-functioning low-cost applications. This month, they also rolled out new hooks into MobileMe, which give the iPhone new functionality — and users new reasons to demand an iPhone.

A similar phenomenon is happening with other devices. For example, the Amazon Kindle is by far the best selling e-book reader. But the Kindle hardware device is nothing to write home about, especially the first one, which was a piece of junk. What’s great about the Kindle, and the thing that makes it "better" than the Sony Reader and even better than all the color "Kindle Killers" that have been demonstrated in the past year, is the Amazon Kindle Store. Hardware doesn’t matter. Network is everything.

And look at the console gaming contest between Microsoft and Sony. The Sony Playstation hardware is vastly superior to Xbox 360. But Microsoft wins primarily because of the appeal of the Xbox Live network.

What’s happening with these consumer electronics devices is that they’re going through the same transitions as PCs did in the early days.

Back in the 1980s, people bought hardware, and the software was secondary. Over time, however, each PC hardware line increasingly resembled all the others, and what really mattered was software. Eventually, even Apple ended up moving over to Intel-based PC hardware. But nobody cared.

What really matters now is the Mac OS X or Windows or Linux, and all the software you can run on these platforms.

And just look at what’s different about the iPhone 3G S. Like a new PC, the new phone is pretty much the same as the old phone, just faster. (The "S" stands for "speed.")

Why this matters

So what does it mean that cell phone software and networks are more important than the hardware?

In a nutshell, it predicts which non-cell phone devices are likely to succeed and fail in the months and years to come.

For example, we’re almost certainly going to see new netbooks and tablets running cell phone operating systems real soon now. We’ll be able to buy systems running the iPhone OS, WebOS, Windows Mobile and possibly others. These devices will hook into the respective app stores and take advantage of other services offered by the companies.

Because of the new primacy of software, I can safely predict even now, sight unseen, that Apple’s offerings will probably dominate as thoroughly as the iPhone, and for the same reason: The App Store, iTunes and MobileMe.

The new importance of networks also raises an interesting set of questions. For example, who will create the first or best Xbox Live-like multiplayer gaming network for a cell phone platform? What if Microsoft rolled out a version for Sidekick users, and pushed Xbox gaming development in that direction? Or, alternatively, what if Apple built an Xbox Live-like gaming network?

What if one of the major handset makers, through partnership or acquisition, gained exclusive control of Amazon’s Kindle and Audible.com distribution? Or Netflix? Or Facebook?

The game-changers of the future will not be new hardware features, but new software and network capabilities.

So if you’ll be buying a new iPhone 3G S, enjoy it! But realize that the best thing about it is that it gives you the iPhone 3.0 software, the App Store, iTunes and MobileMe just like the old iPhone did. Just faster.

Mike Elgan writes about technology and global tech culture. He blogs about the technology needs, desires and successes of mobile warriors in his Computerworld blog, The World Is My Office. Contact Mike at mike.elgan@elgan.com, follow him on Twitter or his blog, The Raw Feed.

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IPhone 3.0 Update: 10 Hidden Features

It has been a crazy night trying to download the latest iPhone update, with many people reporting that they are unable to access Apple’s servers due to unusually high traffic. But Apple’s servers are now up to scratch and everybody should have the 3.0 software update installed on their iPhone and iPod Touch.

If you haven’t had a proper run-down through all the new features in the iPhone 3.0 software update, our colleagues from Macworld have a comprehensive hands-on review. But now that many had the chance to play around with the new iPhone OS, plenty of undocumented features and nifty updates are starting to show up.

I have complied for you this list of the top 10 hidden gems within the iPhone 3.0 update, which are some of the most important undocumented features so far. If you find any more, make sure you leave them in the comments, so that everyone gets to try them.

Adjustable Song Scrolling Speed

Previously, while listening to a song, you had a simple dot on the song bar to rewind or fast forward. But now in the 3.0 update, you can scroll through songs at various speeds. Put your finger on the scrolling point and it will start glowing. Now, if you drag your finger left or right, you will scroll through the song at "high speed," and if you do this movement while dragging your finger down the screen, the speed decreases to "half speed," "quarter speed," or "fine scrubbing."

Special Characters In Messaging

The 3.0 keyboard has a few extra special characters when holding certain signs down. For example, when you hold down the "." you also get "…" The dash "-" also displays an em-dash "-" and quotations and apostrophes display "<<" and ">>" and can also be curved. Another quick tip is to hold and press on the numeric button while in letters mode and slide your finger to the desired punctuation sign. Then, the letter keyboard will come back automatically.

More Ways to Access Spotlight

Spotlight, the search function that looks through your e-mail, contacts, appointments, notes, and more can be accessed in multiple ways. While on the first Home Screen page, if you swipe towards the right side of the screen, Spotlight will be activated. (there is a little icon above the quick launch bar, just before the dots representing the multiple screens). You can also access Spotlight while pressing the home button when on the first Home Screen page. Alternatively, Mail and Contacts have now search bars at the top of the list.

Quote Fragment Within Reply in Mail

Just like on its desktop counterpart, the Mail app in the iPhone 3.0 update can now reply with only a quote from the original e-mail. To achieve that, you tap and hold in an e-mail (just as with copy/paste) and select the portion of text you want to quote. Then just hit the reply button and the selected fragment will be appended at the end of the e-mail (under your signature), instead of the whole original message.

Remove Individual Texts from A Conversation

One annoyance in the 2.X iPhone software was that you had to remove an entire conversation of text messages. But in the 3.0 update, there is an Edit button (it’s in the top-right corner when inside a conversation), which allows you to select and remove individual text messages from a certain thread, similar to the way it is done in the Mail app. Extra tip: this way you can also select a text you want to forward (instead of copy/paste).

Open Link In New Tab In Safari

Safari now uses tabbed browsing, like big boys do on the desktops, and this new hidden feature is great. If you tap and hold on a hyperlink (hyperlinked text) on a Web site within Safari, a dialog will prompt you to open this link, copy it (link locations) or open it in a new page (which opens a new tab in Safari).

Force Quit Unresponsive Apps

Because of multiple functionalities for the Home button, this key will no longer force quit unresponsive apps like it did in 2.X software. To force quit an application in 3.0, you have to hold the sleep/wake button at the top until the red power off slider appears. Then you have to hold down the home button to quit the unresponsive application.

Shake Phone to Undo Typing

As simple as it sounds, when you are in the Mail, Messaging, Safari or Notes applications, after you typed a word/several words, just shake the phone and a pop-up will appear, asking you whether you want to undo what you have just entered.

Change App Store Account On The Fly

Until now, you were stuck to changing your iTunes account from your computer and then sync back to the iPhone. In the 3.0 software this can be done in two ways: either by going to Settings/Store and logging out and then back in with a different account, or straight within with the App Store application. At the bottom of each search page, your current account is displayed, so if you tap on it, you can sign in/out or even edit/view account information.

Unlimited Number of Apps Installed

In the 3.0 software update, you can now install an unlimited number of application (as long as the storage space allows you). The number of applications pages has increased from nine to 11 and any apps installed above the 176 that could fit on these pages will not be visible (no icons on pages). However, these invisible apps can be accessed via Spotlight (see above multiple ways to access Spotlight).

Is there anything missing from the 3.0 software update? Have a look at our iPhone 4.0 Wish List.

Apple Boosts Revenues With IPhone, IPod Touch

Gregg Keizer, Computerworld

As expected, Apple Inc. Wednesday announced that Mac sales fell last quarter, the first time in nearly six years that the company has reported a year-to-year drop-off in Mac sales.

Even so, revenues climbed by 9% for the quarter compared to the same period in 2008, and profits jumped 15%, largely on the backs of the iPhone and iPod Touch.

Apple sold 2.2 million Macs during the quarter, a decline of 3% from last year. But Tim Cook, Apple’s chief operating officer, argued that the number should be seen as a major win for the company, considering that research firm IDC last week pegged the overall personal computer industry decline at a steeper 7%.

“To exceed [the industry average] in this horrendous economy is quite an accomplishment,” Cook said. While CEO Steve Jobs remains on medical leave, Cook is the company’s head executive, in charge of day-to-day operations.

“They have every right to be as happy as they appeared to be,” said Ezra Gottheil, an analyst with Technology Business Research Inc. “The fact is, in this economy, they’ve done quite well.”

Apple sold 1.4 million notebooks and 818,000 desktops in its second fiscal quarter, which ended March 31 — a decline of 2% for the former, a decrease of 4% for the latter over the same quarter last year. The drop in desktop sales, however, was significantly less than in previous quarters; last quarter, for example, desktops were down 25% from the same period the year before.

Cook attributed the renewed strength of Mac desktops to the one-day refresh of its entire line last month, even though Gottheil at the time had called the roll-out “underwhelming.” Cook argued otherwise, saying that sales of the new iMac, Mac mini, and Mac Pro surged in the last weeks of the quarter.

Asked about netbooks, the category of small, inexpensive notebooks that has been responsible for an increase in Windows PC sales, Apple’s executives again dismissed the concept as unworthy of their attention.

“When I look at what’s being sold [as netbooks] I see terrible software and junkie hardware,” Cooks said. “It’s just not a good experience, and not something that we would put our brand on. I think it’s a stretch to call them a personal computer.”

But as before, Apple hedged. “We’re always looking at the space,” Cook added. “If we can find a way when we can deliver an innovative product, then we’ll do that. We do have ideas in that space, and the product pipeline for the Mac is fantastic.”

“They hemmed and hawed, but I think that they’re leaning more toward something slotted between the iPod Touch and the [US]$999 MacBook,” said Gottheil, referring to his prediction that although Apple won’t launch a netbook-style copycat, it will introduce something this year to compete with those PCs on price.

“From a platform point of view, it’ll be an iPod Touch, but from a form factor point of view, it’s got to be a good deal bigger,” said Gottheil.

Reports from Asia last month had claimed that Apple had placed large orders for 9.5-in. to 10-in. touchscreens.

“They may not make it with a keyboard,” Gottheil continued. “There was a lot of talk today by them about ‘cramped keyboards.’ I think it would be a mistake to make the keyboard not essential, but every company has its prejudices, and Apple is not a keyboard-friendly company.”

While Mac sales slipped, sales of iPhones in the quarter surged: Apple sold 3.8 million of the smartphones, 123% more than the same quarter the year before. The number was significantly higher than many analysts’ projections: Brian Marshall of Broadpoint AmTech, for example, had estimated Apple would sell 3.15 million iPhones.

Cook also called out the iPod Touch as a big seller, though he declined to get specific; Traditionally, Apple does not specify how each iPod model has done. “The iPod Touch is a runaway hit,” said Cook, “and clearly that’s been driven by the App Store.”

When asked to explain whether there were reasons Apple has stuck with AT&T Inc. as its exclusive mobile partner in the U.S. — a question prompted by recent reports that AT&T wants to extend the deal, but that Apple may not — Cook dodged the question. “They have done a very good job with the iPhone,” he said instead. “We do not have a plan to change that.”

“iPhone sales were higher than I expected,” admitted Gottheil. “They’re still meeting some pent-up demand outside the U.S.”

As is their practice, Apple’s executives today refused to comment on upcoming products, other than to repeat that they believe what they have in the pipeline is “fantastic.” Most Apple watchers, however, expect that the company will roll out one or more new iPhone models this summer when Apple upgrades the operating system to iPhone 3.0.

Gottheil predicted that Apple will let the current iPhone 3G inventory draw down, as it did last year when in the weeks preceding the early-June announcement of the upgraded smartphone, Apple and AT&T exhausted their supplies.

Bottom line, said Gottheil, Apple’s ability to weather the recession is impressive. “Mac users are still buying Macs,” he said. “They may be getting fewer of those ’switcher’ sales, but the Mac will be in a strong position when the economy recovers.”