Apple transforms an industry

Apple really is transforming an industry – Nokia has unashamedly pre-announced an iPhone clone. That link is complete with video goodness.

The more important thing to me is Apple’s ability to change the market structure. Currently there is far too much power with the telcos, and by launching the iPhone Apple has managed to grab some (10% it seems) of their revenues.

The end game is we pay a set amount for wireless IP access, use the unlocked deviceĀ  of our choice and the applcation (phone, internet, sms) of our choice.

The big elephant in the room for me is the possibility of P2P mesh comms displacing telcos. Nobody is pushing these as there is a limited revenue model. It is, however, a public good thing – we all win if we do this. If the device manufacturers can wean themselves from telcos then it will start to be in their interest to go mesh – after all it will be all about the devices.

Sadly the telcos are generally dumb enough to fight this all the way to bankruptcy, rather than take the lead into a new market and create new revenue models.

Published by Lance Wiggs

@lancewiggs

3 replies on “Apple transforms an industry”

  1. I agree that Apple and the iPhone are transforming the industry but have they left the door open for other device manufacturers such as Nokia by releasing the iPhone exclusively with AT&T in the U.S.? I know US telcos like to lock their phones but surely Apple would have the power to release the phone across all carriers and make it significantly harder for clones to gain a foothold.

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  2. I agree Sam.
    By taking the telco revenue Apple have increased their short term gains at the expense of being able to just push the go button and make as many iPhones as they possibly can.
    Apple often suffer, to me, from being trapped in a USA mindset. In the USA phones are tied to telcos – and that is it. So launching a stand-alone iPhone wasn’t really on their radar.

    It is the same with DVD region encoding. Apple USA dictates harshly locked-down DVD drives, which is fine if you only buy region 1 DVDs. For those of use in other parts of the world this is simply not acceptable (or legal even), and so my vaunted mac is useless for playing my DVD multi-region collection. The solution of course is to rip them all. Sometime.

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