Feeds

Apple proves: It pays to be late

...And ignore the mobile networks

Choosing a cloud hosting partner with confidence

This week Apple threw the kitchen sink at its iPhone/Touch software stack (details outlined here), removing most of the most irritating nuisances at a stroke. It's a stunning achievement.

So Apple now finds itself where everyone else in the mobile handset business wanted to be 15 years ago. Large companies full of clever people devoted years of planning and expenditure to fail to get here. If the iPhone continues to flourish (see below for the many obstacles en route) - then both rival manufacturers and the networks have to tear up some long established strategies.

For the established handset competition, if Apple takes the lucrative high end, that leaves them scrambling around for gimmicks in a cutthroat market that's increasingly low margin. For the networks, they'll need to find devices that people actually want - or pray that Apple drops its carrier exclusivity policy and partners with any network that wants to sell its gear.

So how did someone with no track record in a notoriously difficult business find itself walking away with the laurels? What can explain this paradox?

For Apple, coming late to the phone business has actually been a huge advantage. The success of the iPhone is down not just to great engineering, but profiting from several years of desperate and outright stupid behaviour by the mobile phone networks, who set the terms for the manufacturers. The received wisdom of the industry - that you had to know the wiles of the mobile networks to succeed - turned out to be completely mistaken. And to explain this we find another paradox, which looks like this.

The mobile phone business is actually the most "customer friendly" or "customer responsive" in the world. This might seem a strange thing to say. Have a read of Brendon McLean's splendid rant from two years ago - Why we hate the modern mobile phone, for a summary of customer unfriendly business. But it's true.

That's because the customer isn't you or me, or the billion and a half other phone users in the world. Phone manufacturers have only 800 customers, of which only around 200 really matter: these are the gentlemen from the networks. And one of these stroppy customers can demand changes that cost the manufacturer millions, or cause the cancellation of product lines in which tens of millions have been invested.

For example, it's these gents who in their wisdom decided that we're too stupid to use the "butterfly" design Nokia introduced with the 6800. Networks killed the third phone in this line, the E70, leaving Nokia probably just one iteration away from making a classic. The reason? The fold-out keyboard would confuse us. In their wisdom networks have done all kind of similar things over the years - disabling Wi-Fi, for example, or blocking ports. But most of all in their pricing policies for data.

Apple simply ignored all this. Such was its confidence in its own product, and its own steamroller marketing, that it was able to capitalise on the networks desperation. But being late to the party also had another advantage.

Providing a secure and efficient Helpdesk

More from The Register

next story
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
MOST iPhone strokers SPURN iOS 8: iOS 7 'un-updatening' in 5...4...
Guess they don't like our battery-draining update?
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.