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Friday, June 19, 2009

The double edge sword of subscription mobile apps

I think that Apple is playing with a double edged sword when it comes to subscription iPhone apps. One thing that I have hated about Verizon is that they want to charge a fee for everything. Just about every add on app for my non-smart LG phone comes with a monthly fee. non of these apps are valuable enough for me to want to pay every month for it.

The reason that cell phone carriers have been very attractive businesses is because they get reoccurring monthly revenue from most of their customers. Most MBA's eyes get big when they think they can get the same kind of revenue for their business. Lots of people want to sell you service that you have to pay every month to get. Sometime I think business people see a greater ROI by having a subscription business and end up chasing a pot of gold at the end of a rainbow they cannot find.

There are a class of apps that can come to the iPhone with a subscription service that would never come with a one time purchase model. Subscription apps really open up the kind of content based apps we will see. I think this is a good thing for mobile platforms and content providers.

The problem is that you run the risk of turning off your customers. For years now there have been backlash toward subscription services. People are already paying too many monthly bills. While a service like Netflix has done well, subscription music service and sat radio business have not done well. The value proposition has to be in line with customers expectations.

The reason this is a concern for Apple is because they have put themselves in charge of their ecosystem. The iPhone is popular in part because of the app store. It is not an open market, it is a market that Apple guides and controls. If developers start turn off iPhone customers, this can effect how people think of Apple and the iPhone in the end. It is a very tricky situation.

I am in a part of my life where very little is worth another subscription. I was willing to pay for the MLB app, because paying $10 at the start of each season is easier to budget, that playing $2 a month for the baseball season. I guess it is all about how the users thing of their finances.

Labels: apps, business, iphone, mobile apps

- Rich, 8:47 PM

Tuesday, February 24, 2009

iPhone Apps and Content

There is a post on Gizmodo about how they are starting to see single band apps pop up on the iPhone store. The person who wrote the article thought this is lame. It is easy to see how this could end up in 100s of apps being on the store and an average fan buying dozens of these apps.

I am not surprised this is happening. It is a result of the business rules of the app store and of the apps. A customer can only be charged once per app. That means that there is no other way for the record labels to charge you every time the content is updated. There is no way to charge people through a single app. The content provider is forced to send the customer back to the app store and buy a new app.

I am not against the record company charging me for new content when it comes out, I just don't like the idea of needing 40 apps to listen to the bands I like. I already blogged about how apps have short life spans. So putting out new apps sounds like a good thing. This is new and it seems like there is a lot to be worked out in this business model.

As a customer, if there are songs I can get on the app, I want them in my iTunes collection also. I would want to be able to listen to them in other context also. Not just in that app alone.

Labels: apps, business, content, Gizmodo, iphone

- Rich, 11:07 PM

Monday, February 23, 2009

iPhone life and times

I found this entry about the lifespan of Apple iPhone apps. If you go and look at the source information, you will find even better information. There are some very interesting about what to do with your ads. My guess is that this information was not really finally in yet. I have the feeling that these models will change a lot over the next two years.

I have read a lot about how the iPhone Apps store is changing the game when it comes to software. I think that the info on these slides only tell part of the story. There needs to be more information about how much profit these apps make. I know that companies release free apps to extend their brands. I am not sure where that fits on this list.

Labels: apps, iphone

- Rich, 7:33 AM

Monday, September 15, 2008

The Problem with Rejecting Apps

I read a story on about how the iPhone app podcaster was rejected from the apps store. It was rejected because the features were close to the iTunes Desktop feature set. The difference is that you cannot currently use the iPhone to directly download podcasts. This app allowed you to directly download podcasts to the iPhone.

I know the argument is that Apple has the right to control there platform. The problem is that Apple has set rule, but they are not letting people know what the rules are.

Apple had nothing in the terms prohibiting developers from duplicating features currently available on desktop application. I followed all the guidelines and made sure everything is in the correct place. Yet Apple denies me because I allow users to download podcasts just like iTunes.

If you want app developers to be in business with you, you need to be clear about what the rules are. Apple is going to go through a lot of growing pains with iPhone apps. They have does something truly innovative with the way they are handling mobile apps. The problem is that they leave the door open for other smart phone makers if they restrict too many apps.

Labels: apple, apps, iphone, podcast, podcaster

- Rich, 2:38 PM

Sunday, August 31, 2008

Apple Smack Down

I read today that the iPhone ad that said the iPhone goes to "all parts of the Internet" has been banned. When I saw this ad for the first time I said "except for any page that plays flash." I like when companies are called on adds that are misleading. I know that Apple was comparing themselves to phone that can only get to mobile versions of web sites, but it is not like flash is rarely used. It is a big thing.

Labels: advertisement, apple, banned, iphone

- Rich, 4:13 PM

Sunday, July 13, 2008

Welcome to the iPocalypse

I wonder if anyone got fired over the launch problems of the iPhone G3. Is it wrong for me to laugh at this problem? I think it is funny that Apple got this much hype about the launch and were still not ready for it. I am not sure where they went wrong in the planning, but it is still funny to me.

In the end I do not think they really lost any customers to this. At most they treated some customers poorly, but not poorly enough for them not to want the product. Apple is very good at treating their customers poorly enough not to effect their business. It looks like they got all their problems worked out. I wonder if this will happen with the next iPhone also.

Labels: apple, customers, iphone, produce launch

- Rich, 4:20 PM

Monday, June 16, 2008

Cheaper iPhone, Kinda

Everyone has heard how the new iPhone will see at a price of $200. The problem is that this is not really the price of owning an iPhone. It took a while for it to come out that the new iPhones will not have the same pricing plans as the old iPhone. Gizmodo had done a iPhone cost of ownership comparison. It is a pretty interesting chart.

I am looking forward to the iPhone release so I can hear upgrade stories. I wonder what will happen to existing iPhone users who want 3G. I have read too many conflicting pricing plans for me to believe any of them. If I was ATT I would not let them gt the phone for $200. I would want them to pay more because I already have them as a customer and I am the only company with the iPhone. AT&T has very little chance of those those customers.

I guess I will be waiting to find out if I will be able to use an Android phone on Verizon.

Labels: ATT, cell phone, cost of ownership, Gizmodo, iphone, price

- Rich, 3:55 PM

Friday, August 24, 2007

iPhone Hacking

It looks like there has been some iPhone hacking going on. One group has been testing out different ways to attack the iPhone. Some of those attacks are pretty scary. Some kid from New Jersey found a way to hack the iPhone to work with other networks. I think that is pretty cool.

I guess this is what happens when you release the most anticipated, most hyped, most coveted consumer electronic device of the year. If you lock it down, people will always want it to do more. I wonder how these hacks will effect the next iPhone.

Update: I saw a lot of news stories about the iPhone that will play on any network. I have not seen any stories about the security hacks. The security hole is much more dangerous, but not as sexy of a story. I guss that is why.

Labels: apple, hacking, iphone, security, update

- Rich, 5:47 PM

Tuesday, July 24, 2007

Low iPhone Activations

It looks like iPhones Activations are lower than expected. I am not sure what this does to getting 1% of the cell phone market in the first year. I cannot expect it is good for Apple. These numbers might be a little off because it only looks at the first 24 hours of activation. While everyone knows someone who bought an iPhone, it might not be all that many people.

Labels: apple, ATT, iphone

- Rich, 4:47 PM

Sunday, July 08, 2007

iPhone Wishes

Here are two interesting lists of iPhone wishes. I have only played with an iPhone for a few moments. I would like the chance to use one more. I know that apple had a tight deadline to meet. I wonder how many of these had to do with tight deal lines.

I worry that other of these things for a problem I have with apple some of the times. I feel that Apple is trying to tell me that there is only one way to look at information, their way. Any other way I might want to approach it is wrong. They are giving me what they thing the best way to deal with something is. The third item on Derek Powazek's list feels like this to me. I always want more than one way to navigate. I want UI designers to see this is a good thing.


Found this via tantek's Twitter

Labels: apple, iphone, usability, user interface

- Rich, 10:56 PM

Monday, July 02, 2007

AT&T iPhone Experence

I hope that iPhone users do not let apple off the hook for poor service by AT&T. I have seen people complain about poor service from AT&T activating the iPhone. It might just be just opening night bugs. If the problems are on going, I hope the media and iPhone users do not forget that Apple chose AT&T. Apple could have opened this phone up to run on more than one carrier. If AT&T screws iPhone users, it is Apple screwing iPhone users. There is no other way around it. I wonder if Apple fans will see it that way. My guess is that they will not.

Labels: apple, ATT, cell phone, iphone

- Rich, 8:57 AM

Friday, March 30, 2007

iPhone getting closer

I have been unconvinced by the iPhone from before it was announced at MacWorld. I have a lot of the same concerns that John Dvorak has. I know that Dvorak has a history of being a troll. It does not mean he does not have a good point.

Apple has a great history of beating companies that are not that good to start with. The MP3 player market was not very developed when Apple got in. Of course they made quick work of that market. Now they are entering a market with companies that sell hundreds of millions of units. Nokia, Motorola, and LG have all been around the block a few times. That makes this a whole different game.

The point that Dvorak is making is that Apple will need to be able to revise the iPhone much quicker than it has revised the iPod. Even if the first iPhone is great, they will be a long way from taking over the market at that point.

In a year's time we will be able to tell if the iPhone was successful or not. Until then Dvorak has just as much of a chance of being right as all those fanboys going crazy for a phone they have not used yet.

Labels: apple, cell phone, iphone, ipod, LG, Motorola, Nokia

- Rich, 3:53 PM

Friday, March 02, 2007

Phones for nothing and my Music players for free

I know you have to believe in your product or you are not going to get anywhere. I know you need to tell analysts that you are going to conquer the world. If you do not think you can be the best you are not going to be the best. All that being said I was just shocked at some of the answers from the analyst Q&A session with Apple COO Tim Cook. Here is one of them that caught my attention.

Q: Your stated goal for calendar 2008 is to ship 10 million units, which is about 1 percent of the overall market. Given the functionality and price point of the product, it eliminates the low end of the market. How do you look at the available market for the first generation of iPhone and what kind of marketshare do you think you can take?

A: The traditional way of look at a market you look at products you are selling, you think about the price bands that are currently market, you look at price band your product is in, and you assume you can get a percentage of it. And that's how you get to the addressable market. That kind of analysis doesn't make really great products. The iPod would not have been brought to market if we would have looked at it that way. How many $399 music players were being sold at that time?

Today in the cell phone industry, a lot of people pay zero for the cell phone. Guess what? That's what it's worth! And so, if we offer something that has tremendous value and is sort of this thing that people people didn't have in their consciousness -- it was unimaginable, I think a whole bunch of people will pay $499 and $599. Our target is clearly to hit 10 million and I would guess that some of those people -- there are some of those in the audience -- who are paying zero because it's worth zero, will pay more a bit more because its worth it.

To start with you are not paying zero for a "free" phone. The price of that phone is rolled up into your plan. Cell phones are happy to give phones away to get people to sign up. That same phone when you are not signing up for a new plan is $200 to $250. Many of the people who want your phone will not be signing up for new contracts. How much will the iPhone be for them? Will it be $699 or $799. That will have to be a hell of a lot better than a free phone for that price.

Second, are you really competing with free phones? I thought you were competing with other smart phones. Most of the people I know who get the free phones, only want a phone. They do not want any of the other features. I have seen some free smart phones, but most of the time they start at $199. You are saying that you phone is more than three times better than the $199 smart phone.

Third, your partner has to sell those free phones also. It might not be so good to make the partner look bad. You cannot throw too many stones at the other companies in the same stable. It might be bad for you in the end.

I am still in the unconvinced camp. Just because apple has been able to keep the iPod line in great shape, it does not mean their phone will be great. I hope they are being more thoughtful about other phones than the COO seem.

Labels: apple, cell phone, iphone, Tim Cook

- Rich, 5:57 PM

Tuesday, February 27, 2007

Pre-iPhone

I have been thinking about the Nokia N800 internet tablet. It is basically the iPhone with out the apple name or the phone features. I read a lot of people blog how they would like a non-phone version of the iPhone for less money. It looks like that is what the Nokia N800 is. I wonder why it is not getting any attention. I have not heard people get geeked about this device. I wonder if Nokia is doing a poor job promoting it. I would like to read some more reviews, but I am not finding very many.

Right now I am not in the market for an internet tablet. If I had an extra $399 to throw around, it would be toward more lenses for my camera. It would not be for a miniature wi-fi device. I am not really sure who is in the market for that device. I am usually willing to tote around my laptop when I want to get on the internet.

I wonder if they are laying low right now. They have up until the iPhone is released to make noise. They also could be putting themself in a place to catch some of the iPhone runoff when it is released. I wonder if we will be seeing more devices like this.

Labels: internet, internet tablet, iphone, Nokia, wifi

- Rich, 7:40 PM

Friday, January 12, 2007

iPhoning It In

The only think people have been talking about over the last couple of days is the iPhone. It the SFlickr meetup last night I must have talked about the iPhone six times. Everyone just wants to get one.

I have been telling people all the reasons I will not be running out to buy one right away. Mostly I am not willing to switch my phone service to Singular to get the phone. I guess I would have to leave the United States to use it on the phone provider of my choice. If I could get it for T-mobile I might think about it.

It seems that lots of people are blogging about it. That has to be a good thing for Apple. I wonder if they will be able to keep the Buzz high from now to the release in June. For those who do not know they announced it now because it still has to go through FCC testing. There would be no way to keep it quite during FCC testing.

Here is a pretty good article about 10 myths about the iPhone. Most of what I have read so far has been about how the iPhone will either kill all other smart phones or fail out right. It seems like there is no middle point on that continuum for people who are writing about the iPhone.

Personally I want to hold and use one before I judge what it will do in the market place. I think there is a good chance that the phone will do well and still not put other smart phone makers out of business. I think they might chance the rules for how smart phones are made, but I think they will have a hard time pushing everyone else out of business.

Many people try to tell me that Apple is going to do to the cell phone market what it did to the MP3 player market. I have a hard time seeing this. Apple entered the mp3 player market in 2001. The devices had only been around since 1998. Apple brought people to the market, they did not people to switch away from other products.

The cell phone market is different than that. It is a market that has been around longer and has much higher penetration. The average person is on their 3 or 4th cell phone by now. People have ideas what they like and what they don't. Steve Jobs said at the keynote that everyone hates their cell phone. That is not correct. I love my cell phone. I have an LG VX9000. It is perfect for what I use it. The keyboard is great for sending text messages. I am not always happy with my cell phone service provider, because they charge to much for some services.

I am not going to say the iPhone is going to fail. I am not going to say that the in three years Apple, Inc will be the only companies making cell phones. I am happy that Apple is taking a chance my making a cell phone. It is still a chance. Apple still needs to do work to deliver this phone. Once they get the phone to market it is not over either. They will have to keep on going. I am looking forward to see how the market changes in the next 2-3 years.

Labels: apple, cell phone, iphone, markets

- Rich, 3:28 PM

Thursday, January 11, 2007

iTrademark

It only took a day for Cisco to sue Apple over the trademark of the name iPhone. Apple knew that Cisco had the trademark, but went a head anyway. What are they thinking? Are they thinking that America loves the iPod so much they can win any trademark suit they want? This is just plane stupid. I hope Cisco wins after reading this story.

Labels: apple, cisco, iphone, name, trademark

- Rich, 7:59 AM

Wednesday, January 10, 2007

iPhone, iUnconvinced

Apple announced their new cell phone, the iPhone. It was the big announcement at MacWorld this year. Most of the people I know are going crazy for them already. They are excited to see that Apple is entering the smart phone market. They think that apple will clobber it the same way they clobbered the MP3 player market.

I am always hesitant when people tell me something is the next big thing. I have seen a lot of next big things fail. I will hold my judgment on the iPhone until I can see and use one. I think the devil will be in the details here. Even if the UI is really good it does not mean the hardware will live up to the UI.

I am worried about the touch screen. I want to have real buttons and a real keyboard. I ma happy to give up some screen size for real buttons. I like the feedback you do not get on a touch screen. I also have fat, sweaty fingers. That is not good for a touch screen. It will be hard to keep clean and unscratched. I think I would rather have a larger device with a slider.

I wonder how long it takes for them to put out the same device without any phone features. It looks like it would be a pretty cool iPod without the phone features. I would like it for just wifi/iPod use.

I am also unconvinced because I am not about to switch my phone provider to get one. I am not about to switch to Singular. No one I know likes Singular.

I guess I will just have to wait and see.

Labels: apple, cell phone, iphone, ipod

- Rich, 7:15 PM

Wednesday, December 13, 2006

Apple Calling

I like this article about the So-called iPhone that everyone is looking forward to. I have always has questions about an Apple Cell Phone. Would it be a smart phone, like the Trio and Blackberry or would it just be a phone that also had a music player.

Much of the problem has to do with the cell providers. They make money from controlling the experience. Most people get phones from the cell providers because the providers pay for the cost of the hardware. This means that Apple would have to make a deal with some cell phone providers or they would have to make a phone so good that people are willing to pay full price for it.

I am not sure the Apple or customers would really be happy with an iPhone. I know that people want to know what Apple could do to a cell phone, but I think the issues are too large. I want to see what they can do, but I do not think the can just change the market. Cell phones are a pretty mature product, I am not sure apple can come in and just change everything.

Labels: apple, cell phone, iphone, ipod

- Rich, 3:40 PM

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