Those watching the tech industry have likely noticed that 2008 hasn’t been a very kind year thus far to 2007’s darling Apple. That said, with rumors swirling of an event taking place at the end of February - likely to launch the iPhone software development kit (SDK), things could start picking up very quickly.
Apple needs this SDK. The iPhone is still without a doubt one of the greatest mobile devices ever created, but more and more users seem to be getting frustrated because they can see the potential for it as being even greater if Apple would simply let developers make apps natively on it - rather than through its Safari browser (which only a handful of companies have done a good job of utlizing - Facebook probably being the best).
The firmware hacks that allow users to unlock their phones mere days after updates are launched underscore this issue. Recent reports indicate that massive amounts of iPhone are probably being sold simply to unlock.
And that’s hardly the only bad news for Apple recently.
The stock has plunged from the $200-a-share level to around the $120-a-share level, the big announcement of MacWorld, the MacBook Air, has been thus far met with so-so reviews, there’s been a delay of the other big MacWorld announcement: Apple TV Take 2, and now the company is cutting back on main product orders (iPod, iPhone, MacBooks) for the second time in two months.
This iPhone SDK has the potential to turn all of that negativity around. It is exciting because Apple has made such a brilliant piece of hardware that runs an outstanding OS and has a stellar base of applications, but not even Apple can be expected to create the best of everything. By allowing developers to utilize their creativity and various levels of expertise, we’re going to see some great, potentially game-changing iPhone apps.
I think Apple realized as much as well when it went against its earlier stance of saying development would only take place in Safari. Outside developers making apps won’t hurt the iPhone (assuming Apple doesn’t allow for malware, which they obviously won’t), they will help sell more iPhones - probably a lot more. Steve Jobs is a great salesman, but sometimes an enthusiastic developer base is an even better one.
Update: Here are some good numbers showing a big shift in the industry towards high-end smart phones such as the iPhone and Blackberry and away from the traditional cellphones. These numbers underscore how important the iPhone SDK will be in the coming months.
5 Comments
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Martin Edic said:
In between the reports of less orders for iPods and MacBooks are increased orders for iMacs which are 4-1 more profitable than iPods. As usual we see only the negative reports touted in the headlines. The news the markets have chosen to ignore is greatly increased market share in computers- a huge deal, especially in a down economy.
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ron said:
Poor iPhone, with only 28% of the US smartphone market. The stock itself was hit along with the industry in general. Get some perspective.
(But yes, many programmers are looking forward to the SDK)
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MG Siegler said:
@martin - true enough about the iMacs. if you’ve read any of my previous works (on ParisLemon), you’ll my decidedly pro-Apple stance on most issues, I do think it’s fair though to say the company has taken quite a few hits of late.
@ron - Apple has had great, quick penetration into the market (which I’ll add something to the story to point out), but the cuts to iPhone orders was more the trend I was addressing specifically here.
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jack said:
Wall Street is conservative. Apple is innovative and progressive. One sees red while the other sees black. Apple is changing the high tech world and Wall Street has a hard time keeping up. I just see this as an enormous buying opportunity, having complete faith that the Apple success phenomenon is not a fluke and just a sign of more success to come.
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Ron Evry said:
I seem to recall the brilliant folks on Wall Street letting out a huge yawn, saying “so what” when the iPod first was announced.
Well, I bought Apple at 13 (before the split), and I wish I could’ve afforded more than the paltry few shares I got then. Of course, at 120-130, it is still a bargain compared to what it will be…
7 Trackbacks
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